I'm looking to see if anyone has explored this type of strategy and/or has any thoughts before I investigate it further. I received a few mails from an ADVFN partner (Accendo Markets) on “dividend plays” Accendo Markets.

The general strategy is to buy specific FTSE100 companies before xd date (using CFDs), collect divi’s, hold until share price recovers from the inevitable xd share price drop, then sell.

The specific FTSE100 companies would be those that have a proven record of either dropping less than dividend or quickly recovering.

My initial thoughts are
1. It’s too simple/good to be true
2. It “may” work in a some cases in a strong bull market but probably falls apart in flat/bear market
3. Margins may be so thin it's not worth it (but partly addressed by using CFDs according to Accendo)

Any thoughts?


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