Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

What prevents investors from buying high yield stocks and selling them as soon as their dividend is paid out?
The ex-dividend date, prevents this, but people are still able to do this and this is an investment strategy. There are some illiquid and immature markets where prices don't adjust.  In the options market people are able to find mispriced deep in the money calls to take advantage of the ex-dividend date. It is called dividend capture using covered calls.