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Is it wise to buy a stock right before the ex-dividend date?

Asked by Anonymous Sep 02, 2026 0 views 1 answers
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Answered Sep 02, 2026

Purchasing a stock immediately before its ex-dividend date is generally not considered an advantageous strategy because stock prices typically drop by an amount roughly equal to the dividend payout on that exact day. Furthermore, buyers purchasing right before the ex-dividend date still incur immediate tax liabilities on the upcoming cash distribution without receiving any actual economic gain, as the market adjusts the share price downwards to account for the payout.

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