How to Invest in Dividend Stocks for Short Term

For short term gains, consider investing in high yielding dividend stocks. Often, good stocks with attractive dividends appreciate within two weeks of the ex-dividend date. Profits can then be taken or the dividend, whichever is more attractive. But, this strategy does not work in a bear market, save it for the bull markets.

Things You'll Need

• Stock trade account
• Internet

Instructions

1. Find sites that list the stocks with ex-dividend dates for the current month. Look in resources below for a couple of suggestions.

2. Research the stock. Look at the fundamentals and whether the stock sector it belongs to is in favor. Also check historical prices for when dividends are paid. Some are paid quarterly and others are paid monthly. Yahoo Finance lists historical prices for stocks.

3. Note the ex-dividend date. Buy before that date. Don't sell until after the ex-dividend date for the actual dividend.

4. In "Resources" below, there are sites that list dividend dates, offer research and commentary.

Tips & Warnings

• Keep a journal of your trades.

• Keep a list of favorite dividend stocks and their ex-dividend dates.

• Be careful, investing successfully is hard work.

• Do your research and use respectable sites and books/periodicals.

• Stock prices change, market conditions and trading conditions change so beware when chasing dividends.

Resources

• Seeking Alpha
• Finance.Yahoo
• Dividend Investor
• High Dividend stocks
• Real Time Traders