Tomorrow, 7/8, is the ex-dividend date for AT&T (T)

Thanks. I don't play dividends but that seems rather high for such a large company. I may have to follow this one more.

You don't have to wait until "the dividend clears" if you mean wait until the dividend is paid.

If you own T today, you can sell it tomorrow and still get paid the $.46/share dividend on 8/1/14.

So yes, a dividend play is where you buy either on the day before ex-div or a few days before ex-div and then count on the stock's price not dropping by more than the dividend amount on the date it goes ex-div.

So in the case of T, if you buy today you will earn the $.46/share dividend which you will receive on 8/1. The price of T will be adjusted downward tomorrow by $.46/share automatically but if you think it will immediately regain some of that amount, you are to the plus side of the trade.

If you trade it in a taxable account, the dividend gets favorable tax treatment, too.

I did that last week with JPM and made several hundred dollars in one day.

Be advised it's not guaranteed money. T could fall by more than $.46/share tomorrow and then it's a waiting game to sell when it recovers.

Thank you for the advice

T has been a good stock for me returning 13% since a February entry. I've committed it to a long hold and will appreciate the dividends over time. I'm hanging and closing my eyes.

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I think the Money Board would be able to reverse a correction on their own with the money stockpiled waiting for it.

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So true

I made (netted) $304 in one day. Not gonna get rich doing that but it was free money, so to speak.