150 Types of Unusual Investments – The List

39. Dividend Capture – some investors have no interest in long-term holding of stocks.

Instead, they own a stock just long enough to earn the quarterly dividend — sometimes they own it for less than a day.

Once they earn the right to be paid the dividend, they sell the stock and buy another stock.  They follow this pattern over and over again.

This strategy can be implemented through direct ownership of stocks or through a mutual fund.

Many dividend capture investors focus on companies that pay nice dividends like banks, energy companies, REITs, etc.