If bonds are sold prior to the interest payment date, the profit consists of the difference between the buying and selling price, which is tax-free (tax-free capital gain). In doing so, interest payment – which would be taxable – is made. Nevertheless, accrued interest, so-called "Marchzinsen", is reflected in the higher selling price. The same procedure can be applied to stocks. In this case, the stock must be sold before the dividend is paid out. Of course, the transaction costs must be taken into account when deciding whether such a procedure is worthwhile for you. Furthermore, it cannot be ruled out that the tax authorities might assume a tax evasion scheme if you proceed systematically. However, giving preference to dividend-bearing securities that finance distributions through reserves from capital contributions is also a proven way of reducing one's tax burden, as such payments are tax-free.