Our Best Dividend Capture Stocks list is based on our proprietary dividend capture rating, which studies the historical pace of a stock’s price recovery after its payout. This list gets updated daily allowing traders to find new dividend capture opportunities on a regular basis.
Learn more about the rating and how to use the list below.
The dividend capture strategy is designed to allow traders to hold a stock just long enough to collect its dividend. A capture strategist can buy a stock from our Best Dividend Capture Stocks list the day before its ex-dividend date, sell it at/above the price at which they bought it and simply collect the dividend!
Stocks on the Best Dividend Capture Stocks List can be bought one day prior to their ex-dividend date, held until the following trading day and sold as soon as the stock price recovers back to the cum-dividend (CD) price.
Those stocks that have the highest dividend capture rating are likely to recover the fastest after they go ex-dividend. Traders can sort by the yield-ontrade column if they are looking to capture a higher yield on their trade.
The Best Dividend Capture rating gives equal weighting to two parameters: the recovery reliability rating and the recovery strength rating.
Only stocks that have a DARS rating of >3.5 and have a history of 10 previous regular payouts are analyzed to calculate a rating for both parameters.
Click here for a detailed understanding of what DARS is.Recovery Reliability Rating
The recovery reliability rating looks at the 10 previous payouts and analyzes whether the stock price has recovered quickly after it went ex-dividend.Recovery Strength Rating
The recovery strength rating calculates the average number of days it took for the stock price to recover back to the cum-dividend price.
This rating analyzes the stock’s potential to recover after it goes ex-dividend.
|5||The stock has recovered more than 8 times in its previous 10 payouts within 5 business days.|
|4||The stock has recovered between 6 to 8 times in its previous 10 payouts within 5 business days.|
|3||The stock has recovered between 4 to 6 times in its previous 10 payouts within 5 business days.|
|2||The stock has recovered between 2 to 4 times in its previous 10 payouts within 5 business days.|
|1||The stock has recovered between 0 to 2 times in its previous 10 payouts within 5 business days.|
|0||The stock has not recovered within 5 business days in its previous 10 payouts.|
This rating analyzes the stock’s speed of recovery after its payout.
|5||The stock has recovered between 0-1 days after its payout.|
|4||The stock took between 1-2 days to recover after its payout.|
|3||The stock took between 2-3 days to recover after its payout.|
|2||The stock took between 3-4 days to recover after its payout.|
|1||The stock took between 4-5 days to recover after its payout.|
|0||The stock took more than 5 days to recover after its payout.|