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DividendMax is a tool that
enables an investor to construct an
investment portfolio based upon
predictable levels of future dividend
income.
It ranks the scale and timing of
declared and predicted dividends,
listing the ‘ex-dividend’ and ‘pay date’
of each thereby allowing the user to
select stocks that deliver the returns
they require at a level of risk they can
tolerate. The tool compares the yields
of over 1100 stocks globally, ranking
them by yield, with further filters by
index and sector.
The user can then refine their search
by Market Capitalisation, Dividend
Cover, Consecutive Annual Dividend
Payments and Forecast Dividend
Increase.
The core components of DividendMax
are:
OPTIMIZERMAX
(SELECTOR TOOL)
The Optimizer tool looks at the scale
and timing of forecast dividends
and continuously calculates and
recalculates the expected yield
according to the price of the stock and
the proximity to the ex-dividend dates.
The user can select stocks according
to the risk associated with the
dividend payment being made and
then apply filters according to a whole
range of criteria until they are able
to identify stocks that are right for
their own attitude to risk and income
requirement.
OptimizerMax (and all of the
DividendMax tools) allow you
to drill down into the individual
company details which will give you
fundamental data, future dividend
data and the dividend history.
GENERATORMAX
(INCOME PLANNING)
The portfolio tool allows the user
to select from all future dividend
payments and create a portfolio that
produces regular income according to
their individual requirements.
It calculates and displays the income
per £1000 invested, provides portfolio
performance metrics and keeps a
transaction history.
COUNTDOWNMAX
(DIVIDEND CAPTURE)
The countdown tool provides a list of
all companies with dividends going
ex-dividend (the period during which
a purchaser of a share would not
qualify for an upcoming dividend) in
the coming three months that can be
adjusted by index or by sector.
CountdownMax shows the gross
actual return on each dividend and the
status of each dividend, whether an
estimate or declared; it looks forward
for a quarter and shows the type of
dividend (Interim/Final/Quarterly/
Special) and gives the yield of that
particular dividend.
Because it takes account of dividends
over time DividendMax is able
to render the ex-dividend factor
irrelevant.
The tool predicts dividends based
upon a company’s stated dividend
policy or clear future payment pattern;
alternatively it takes an average of
analysts’ forecasts.
TRADING STRATEGY FOR THE
INCOME INVESTOR.
The income investor will typically
decide on a level of return they are
happy to receive over a set period of
time and DividendMax allows them
to do this by identifying forward
dividends and their timing.
It uses the concept of an ‘option trade’
that allows the investor to buy the
stock and hold it for the appropriate
period of time, safe in the knowledge
that they are happy with the return.
Should the targeted return come
in sooner via a share price rise, the
‘option’ can be exercised thereby
giving the investor the desired return
early or the trade can be left to
run further. The following example
demonstrates an ‘option trade’ in a
stock that is high on the Optimizer,
IN AN AGE OF PERSISTENTLY LOW INTEREST RATES THE SEARCH FOR INCOME IS ON. IN THIS ARTICLE,
MARK RIDING
EXPLAINS HOW DIVIDENDMAX CAN BE USED TO IDENTIFY EXPECTABLE DIVIDEND VALUES AS A HIGH YIELD ALTERNATIVE
TO SAVINGS AND BONDS AND HELP TO DELIVER PREDICTABLE INCOME FROM INVESTMENTS.
TAKE IT TO THE MAX – TRADING DIVIDENDS FOR MAXIMUM INCOME
