For the past 5 years I have been stripping the dividend from instalment warrants quite successfully for my mum who is a pensioner and my two children who earn their own money. Come dividend time I search for just the right ones and can calculate to the dollar how much my profit will be. Unless I can guarantee my pofit I dont risk the trade. Its the franking credit which gives me the profit. Anyway I am just trying to understand who wins and loses from my trading these. Obviously I am a winner but what of the issuer and the company paying the dividend? Eg . . WESIOQ - Wesfarmers was paying a Dividend of $1.40 and a Franking Credit of .60c so my trade would receive $2.00 back. I bought the warrant for $1.50 on the day before ex-dividend. The next day I sold it for .07c after the stock went ex-div. 2666 warrants were purchased. My outlay inc. brok was $4018. received divs of $3732 and franking credits of $1599 and sold warrants at .07c - $166 (inc brok). Profit is $1479. So I win. However does the issuer win and the company paying the dividend?. I held this trade overnight - if I didn't trade would the company have retained my dividend and not have had to pay it out. Can anyone explain this from the issuer viewpoint and the company viewpoint. Thankyou.