How To Add 11% A Year To A Dividend Strategy For The Same Risk

This is the fourth article of a series. The previous episodes described the market timing effect for three ETF portfolios holding a stock index, sectors and global assets. This one shows that it can be even more profitable for a dividend portfolio. Dividend investors are usually averse to market timing. They have the feeling to sell low, to buy high and to lose money on each ex-dividend date when a portfolio is in cash. Indeed, timing indicators have inertia. When they trigger a "sell" signal, the market has often already gone down, and on a "buy" signal it has more often already gone up. Moreover, false signals are triggered from time to time. As an example is more convincing than a long theory, this article will show the benefit of a simple market timing rule on a dividend portfolio. I use a simple rule-based strategy, exempt of... Read more