Naa… it aint what you thought!
STRIP- separate trading of registered interest and principal. Of a bond and selling them as two different zero coupon bonds.
What is dividend stripping?
It refers to a practice where a person buys a share just before dividends are going to be declared, gets the dividend and sells it off – obviously at a lower price. So he gets tax free dividend income. He also gets to show a capital loss in his tax returns.
But, is it worth it? take into account the brokerage, the risk of keeping a share overnight, price slippages in a illiquid market etc..
well… wats the fun in life without some risk?;)