Correct. As with any dividend capture scenario, you have to own the stock before the ex-date. Then if you want to, you can sell it ON the ex-date or after and you will still receive your dividends. I just recently did my first capture, NYMT. I put $30,000 in. My divvy was $971. I had to hold for awhile because the price dropped. It came up real close to my original purchase, but I sold before it matched the price I bought in for. I bought in at $6.179 on 3-26. Sold on 4-10 for $6.09. If I had held for one more week, I would have got my original investment back. But I did end up $524.53 in the black.
But now I know -- with NYMT I will probably have to hold for about 2 weeks after the ex-date in order to at least get my original investment back - $30,000. For a profit of $971, it's worth it. It's a quarterly divvy, not a monthly. I have to study the trading pattern a little more to find out just how long I have to hold after the ex-date before the price comes back up.
Anyway, so far, so good! Looking for my next one. Take care...
Kirk :)