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What does DIVIDEND STRIPPING stand for? 

What does DIVIDEND STRIPPING mean? This page is about the various possible meanings of the acronym, abbreviation, shorthand or slang term: DIVIDEND STRIPPING.

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DIVERT, DIVEST, DIVG, DIVI, DIVI/O, DIVINE, DIVO, DIVX, DIVYA, DIW

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What does DIVIDEND STRIPPING mean?

Dividend stripping
Dividend stripping is the practice of buying shares a short period before a dividend is declared, called cum-dividend, and then selling them when they go ex-dividend, when the previous owner is entitled to the dividend. On the day the company trades ex-dividend, theoretically the share price drops by the amount of the dividend. This may be done either by an ordinary investor as an investment strategy, or by a company's owners or associates as a tax avoidance strategy.

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