Dividend rollover plan

Dividend rollover plan

An investment strategy that entails the purchasing before and selling after of a stock right before its ex-dividend date in order to collect the dividends paid out by the stock and capture a trade profit.

Dividend Rollover Plan

An investment strategy in which one buys a stock immediately before the ex-dividend date and sells it immediately after. This allows the investor to keep the dividend without accepting (much) of the risk associated with owning the stock. The main risk to a dividend rollover plan is the possibility that the sale of the stock will result in a loss exceeding the dividend.