Asking for a friend.
So, I am familiar with stocks that pay dividends
My question, er, my friend's question is, "Why not purchase dividend paying stocks before they declare the dividend, hold it and then sell it after the day of execution?"
The buyer reaps the dividend and assuming the stock does not nosedive after the announcement, those funds could be used to move on to other similar transactions.
A few months ago, I happened to run across a stock that is paying over 10% dividends. I purchased and immediately scored a payout. In this case, kept the stock as it has increased in value and today netted me another nice payout. Much more than if the same funds were in a savings account or similar vehicle.
eta...TPVG is the referenced stock.