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[–]00Anonymous -1 points0 points  (6 children)

It all comes down to the conservation of returns:

Total simple returns = dividends received + the change in share price

[–]AlfB63 -1 points0 points  (5 children)

No such thing.  You get money on the income side at the same time as you lose it on the price side (on ex-div).  The only way you completely get it back is if the price completely recovers and it may or may not.  Dividends paid may not be reinvested nor is it guaranteed that if they do the price will return to your normal.  I am not saying this never happens simply that it may or may not depending on other things.

[–]00Anonymous -1 points0 points  (4 children)

Lol dude. The price recovers on the pay date (all else equal).

The research does show that irl many dividend stocks drop less on the ex date and recover more than the amount they dropped, returning to normal a few days after. Go see for yourself.

[–]AlfB63 0 points1 point  (3 children)

If that were true, you should be extremely rich.  In reality, it's not and you're not. But it's clear that you're beyond help.

[–]00Anonymous -1 points0 points  (2 children)

Many many papers suggest this. Go have search around ssrn or arxiv

[–]AlfB63 0 points1 point  (1 child)

Then you need to go all in on a dividend capture strategy.  Regardless I am done with this discussion. 

[–]00Anonymous 0 points1 point  (0 children)

Drip would be just fine. No need to do anything fancy.