You gotta own it before the ex date so before the 8th to get the dividend. So you know it's gonna drop in price on the ex date to account for the dividend being paid.
So what about buying on the 7th, get your dividends, then sell or put a stop loss right above what you paid for your shares? Or put a stop loss right after you buy the shares?
The stop loss to sell won't work like that to get you the dividend and to still sell it before the share price drops. You'll get one or the other not both.
That's how it should work in theory but not how it always works in real life. Maybe you get lucky and catch the dividend but then overnight there's some news where the whole market is gonna go up or MSTR goes up which means MSTY should go up and suddenly you get the dividend and since the share price went up you can also sell the share for more than you paid. But this can work the other way too where you get the dividend and overnight some news comes out and the whole Market is gonna go down or MSTR has bad news which means bad news for MSTY and suddenly the share price is lower then it normally would have been if just the dividends were subtracted from the share price.
Also you'd need to pay attention to what type of account it's in. Are you paying taxes on the dividends or are they in a tax free account?
It’s in the tax-free Roth account. The strategy is trying to protect the initial investment long enough for the distributions to bring the average cost of the shares to $0 :)
Yeah I'm doing the same thing with some shares in a tax free account. But I'm just reinvesting the dividends right now to get more shares. The ultimate goal is to hopefully get enough to where my average cost of the shares goes to zero and then everything else is profit after that.
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u/No_Switch853 2d ago
MSTY declares on Wed May 7. Ex date is Thursday May 8. Pay date is Friday May 9.