trading dividends

trading dividends definition - business

trading dividends

The purchase and sale of equity securities with the goal of maximizing dividend income. Corporate investors may engage in trading dividends to take advantage of the tax benefit of dividend income for corporations.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.