Dividend Capture And The Ex-Dividend Price Behavior Of Electric Utilities

Abstract

This paper examines if dividend capture strategies are causing significant price and volume movements in electric utilities around the ex-dividend date.  Results show that while there is considerable price volatility around the ex-dividend date, this is not being caused by the use of dividend capture strategies.  Stock purchases and sales made to implement this strategy are spread out over time and do not have any localized market-moving impact.