This morning an alert regarding a potential dividend run was issued for Gladstone Commercial Corporation - 6.00% Series G (NASD: GOODO) through our DividendChannel.com service. Let's delve into the details further.

First of all, what exactly is a Dividend Run? This interesting idea came to light during a past ValueForum conference. To explain it well, we start with how a stock typically behaves on its ex-dividend date.

The ex-dividend date is the trading day when new buyers of the stock lose eligibility for the referenced dividend. To qualify for that dividend, shares must be purchased before the ex-dividend date.

All else being equal, the stock price is expected to fall by the dividend amount on the ex-date. This makes sense because buyers after that date no longer receive the dividend. If the price failed to drop by that amount, buyers would effectively pay extra for the same shares.

Yet this leads to another point: if a stock is set to drop by the dividend amount on the ex-date, it should also be expected to rise in the period leading up to the dividend. Without such upward movement over time, repeated ex-date drops would drive the price to zero, which contradicts a company that continues earning and distributing dividends. Thus, there is built-in pressure for the stock to gradually increase ahead of the next payout, creating potential for a Dividend Run.

The word sometime is key here, as dividend investors differ on timing to capture these effects. Some target specific dates for buying and selling, while others use dollar-cost averaging. Certain approaches involve buying shortly before the ex-date, collecting the dividend, and selling afterward. Others sell the day before the ex-date to focus on capital gains, often buying about two weeks or ten trading days earlier.

For instance, the 0.125 per share GOODO dividend that went ex-dividend on 07/24/26 saw shares close at 20.58 the prior trading day. Two weeks earlier, on 07/09/26, the price was 20.04, resulting in a 0.54 gain during that run-up period.

Reviewing the last four GOODO dividends, this two-week approach produced capital gains exceeding the dividend in three of four cases, for a total Divvy Run of +0.65. That surpasses the combined dividend total of 0.50 across those payments. The data appears below:

Ex-Dividend	——Price 2 Weeks Prior—»	——Price 1 Day Prior—»	Run Gain/Loss
07/24/26	0.125	07/09/26	20.04	07/23/26	20.58	+0.54
06/23/26	0.125	06/05/26	20.21	06/22/26	19.90	-0.32
05/20/26	0.125	05/05/26	20.14	05/19/26	20.42	+0.29
04/24/26	0.125	04/09/26	19.81	04/23/26	19.95	+0.14
Div Total:	0.50	"Divvy Run" Total:	+0.65

In roughly two weeks, Gladstone Commercial Corporation - 6.00% Series G (NASD: GOODO) will go ex-dividend for its next 0.125 per share payout. Ex-Div Date: 08/18/26. Payment Date: 08/31/26. Dividend Frequency: Monthly.

As the saying goes, past performance does not guarantee future results. Still, investors who track Dividend Runs may find GOODO noteworthy given its implied annualized yield of 7.26 percent.

Watch for more Dividend Run candidates, and sign up for free email alerts through our Dividend Alerts feature at DividendChannel.com.

Further GOODO Research:

Closed End Funds Trading at a Discount to NAV
Low PE Ratios
Yield Charts

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.