Brown-Forman (BF-B) Dividend Capture: 0.91% per event (3.7% annualized)

Frequently asked questions

What is the dividend capture success rate for BF-B?

Across the last 20 ex-dividend events for Brown-Forman (BF-B), the post-ex intraday high reached the pre-ex close within 30 trading days in 85% of cases, with a median time-to-touch of 1 trading day. We measure recovery via intraday high because that is when a GTC limit-order at the pre-ex close would actually fill, ending the trade at break-even with the dividend pocketed.

How long does it take BF-B to recover its dividend gap?

Historically, BF-B touches its pre-ex close in a median of 1 trading day, with the best case at 1 and the worst case at 2 trading days within our 30-day measurement window. A stricter close-based recovery (mark-to-MOC) is also computed in the database; explore it with the per-ticker simulator’s “Hold N days, exit MOC” mode rather than in the event table.

Is the dividend on BF-B large enough to capture?

BF-B has a signal-to-noise ratio of 0.20 (dividend / 14-day ATR). Values above 1.0 indicate the dividend is larger than the typical daily price swing, making capture trades more viable; below 0.5 means typical daily noise can easily wipe out the gain.

When is the next ex-dividend date for BF-B?

The next ex-dividend date for Brown-Forman (BF-B) is Jun 9, 2026, estimated based on the historical pattern (±3 days).

How does BF-B compare to its sector for dividend capture?

Within Consumer Defensive, the median 30-day pre-ex touch rate is 95%. BF-B sits at 85% — at or below the sector benchmark.

Why does BF-B dividend capture measure recovery via intraday high, not close?

A realistic capture trade exits via a GTC limit-order at the pre-ex close: the moment the post-ex intraday high touches that level, the order fills and the trader pockets the dividend at break-even. Measuring recovery via close is stricter (mark-to-MOC); we expose that path in the per-ticker simulator as the "Hold N days, exit MOC" mode. The high-based primary metric directly answers the trader-facing question "would my limit have filled?" — close-based answers "would I have been flat at the bell?".

How are dividend capture trades taxed in the US?

Holding period matters. Dividends are "qualified" (taxed at the long-term capital gains rate, 0/15/20%) only when the underlying shares are held for more than 60 days during the 121-day window centered on the ex-dividend date. Dividend capture trades typically hold less than 61 days, so the dividend is taxed at your ordinary income bracket. Always consult a qualified tax advisor.

What are the main risks of a dividend capture strategy?

Three structural risks: (1) the share price may not recover the gap within your holding window; (2) ordinary-income tax can consume the after-tax yield; (3) transaction costs and bid/ask slippage can wipe out small dividends. Historical statistics measure base rates; they do not guarantee any single trade will work.