First off in theory a stock should decline by the amount of the dividend once it’s paid. The “book value” does in fact do that but the market value won’t based on market factors.

First off my time is more valuable than trying to collect a 1.25% gain (assuming the annual dividend rate is 5%). On a $10,000 trade with a 1.25% dividend I’m making a gross profit of $125 less transaction fees it might be $100. Then you factor in the market changes over a single day and I might make more or less than $100.

I tried this trade using $10,000 on each purchase for 6 months while I recovered from surgery buying stocks that has an annual yield of 4% or more. After 6 months yes I had more than $10,000 but if I had invested $1000 in 10 of my favorite Cdn stocks yielding 4% or more and held them for the 6 months with no trading I would have had more and would not have wasted endless time at the computer.

Case closed for me.