Signalert Selects Stocks with Growing Dividends
Stock Traded in an Organized Way
Many investors can benefit from a strategy that creates continuous cash flow from their assets.
The securities in Signalert's Dividend Growers program pay dividends in the range of 5% – 9%, usually distributed once per quarter.
Assets in this trading program are selected because they generate dividends, and their dividends have been shown to increase in magnitude over the past years.
How Does the Dividend Grower Trading Program Work?
- Signalert's research department maintains a database of about 500 stocks whose dividends have increased over prior levels in the recent past.
- The dividend distribution data must be determined to be accurate, any data discrepancies must be resolved, and it must be ascertained that the companies are paying real dividends each quarter (instead of paying yearly then annualizing the payment).
- Volumes are researched to ensure there are substantial shares for trading.
- Researchers investigate and identify any special tax consequences (e.g. certain dividend stocks are Limited Partnerships and produce end of year K-1’s instead of T-1099’s, requiring tax preparation considerations).
The Selection Process
- Every 60 days, stocks in the database are ranked by the size of their dividend payment.
- The stocks are then ranked by total performance, using historic track records.
- Stocks are selected for purchase.
- Current holdings from the last selection are re-evaluated. If one of the prior stocks is at the top of the rankings, it continues. If a stock has fallen in performance it is sold and replaced by a new high-performer.
The ingredients of the program have changed over the recent past. Whereas before it was the energy stocks that dominated, now we are seeing a shift toward commodities and utilities e.g. tobacco companies and telecom.
We are happy to say that since the program was started in April of 2010, this portion of our investment portfolios has shown gains of 17%, despite periodic disruptions in the financial markets over the past several months.
We welcome any questions or comments about this or anything else pertaining to Signalert’s investment strategies. Call Client Services at 1.800829.6229 or email us at clientservices@signalert.com
Gerald Appel is President of Signalert Corporation and author of more than 10 books on investing. Please read our disclaimer. Charts on this page courtesy of BigCharts.com.
Sample Stocks:
