Hi everyone
in my journey to understand the world of stocks markets I stumbled across this idea. Since the stock value always decrease after the dividend-date, to represent the minor value due to the loss of dividend rights, I could very well create my own dividend by selling right before the dividend date and buying immediately after. I attach a picture of a mid-cap swiss index to look as an example.
In this way I gets no dividend, but I still geto to buy stock at a lower price, so increasing my number of shares.
since in Switzerland there is no capital gain tax, the only costs would be the one of the transaction, that for a very large portfolio tend to the swiss stamp tax (0.075% each way, so 0.15% in total).
Am I correct in assuming that in this way I get the dividend profit without paying taxes?
second question: it seems quite silly to me that this is possible, so where is the catch? I see that for this fund (attached) the dividend date are always the first monday of september, so it is quite predictable that you should sell the wednesday before.
Even if the spread and the daily variation make it so that I lose even 4-5% of the whole dividend, it still less than in taxes (25% bracket)