This technique is often used to take advantage of the tax laws and maximize profits.
Dividend Stripping is a common strategy used by investors to minimize their tax burden and increase their profits. It involves purchasing stocks before the dividend is declared and then selling them immediately after receiving the dividend. This allows investors to take advantage of the tax laws and avoid paying higher taxes on their gains. However, it is important to note that this technique should be used with caution as it can be considered tax evasion if done excessively. As such, it is crucial for investors to have a thorough understanding of the tax laws and consult with a financial advisor before implementing this strategy.
