• Matt DeLong

Can I just buy a stock one day before the dividends are distributed and receive them?

Yes, you can but it’s an amateur strategy that doesn’t work like you think.

You have an ex-dividend date to be aware of and typically 3 days to “settle” before that date. After a dividend is paid, typically the stock will drop in price by the amount of the dividend. So you own a stock that pays $1.50 dividend and after it’s paid out, it drops by $1.50.