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Reader Q&A: Why To Buy U.S. Stocks And The Reason Behind Ex-Dividend Stock Trading

I’ve recently received an e-mail from a reader with some really good questions about the sense of ex-dividend stock investing and my focus on U.S. equities. Here is his mail:

“Hi Tom,

I found your blog by accident but I think it’s a very interesting and valuable resource as I'm also trying to build a passive income through investments.

One thing I noticed is that you only seem to include US traded stocks? Is there a reason for not including European stock exchanges, or Hong Kong and Australia?

One other question if you don't mind, is it possible to buy dividend stocks just before the dividend date and then sell them and repeat the process? What is the purpose of the ex-dividend section of your site?

Thanks in advance...”

My main focus is on U.S. stock, that’s right. It has several main reasons. Firstly, my database makes it very easy to discover good growth stocks. In addition I looked at stocks all around the world, also China and Africa. Some of them look very good in terms of fundamentals but they don’t have the same quality and as most of the international acting U.S. companies.

In the past I often noticed that the market tends to move back to U.S. large cap equities when there are some turmoil’s in the market. An American stock is a safe heaven and I believe that this should work also for the next decade. The money is still in Anglo-Saxon hands.

I also publish sheets of the best yielding stocks worldwide in my weekly updated Dividend Weekly. The book shows the best yielding stocks from major stock markets but is less detailed than my regular articles.

I am looking for providers who can deliver me qualified material about foreign stocks but I am still busy to work off all the opportunities from the U.S. market. If you have some great ideas, feel free to submit articles to me and I publish them.

There is no sense in ex-dividend stock trading because on the ex-dividend, the stock should be traded ex-dividend. And a quarter dividend of only 0.5% or 1% is so low that your daily fluctuations or trading fee exhaust your potential gain.

The main reason for the ex-dividend section is to improve the number of dividend stock ideas. Over the year I’m able to publish around 5,000 additional stocks with fundamentals. With my regular articles I would never catch them.

I hope my view helped you to understand why I publish daily ex-dividend stocks and I why am focused on U.S. stocks. Feel free to submit a comment on my Facebook-Page. I always try my best to help others.