Dividend Capture watchlist – 5-10-2015

Even though the market closed on a very positive note (~3% up from that day’s low), when examining the underline mechanics of the markets, we can see that the Nasdaq is under performing. This can indicate that investors are reducing risk and moving allocation to heavier and safer stocks. Research shows that this is a bearish indicator (you can read it here).

On the other hand, there are still more positive news from the markets. Some are really good for our dividend capturing strategy. A research by Factset showed that the dividends in the S&P continued to increase this quarter, even though the price decreased.

# of stocks increasing their dividends
# of stocks increasing their dividends

Overall, we can see that the current dividend yield is higher than the 10 year average for most sectors and for the S&P in general:

Dividend by sectors
Dividend by sectors

This helps our dividend capture strategy as we can gain higher dividends + premiums.

When analyzing the market and the market sentiment widget we can see that we are still in the range of 185-200 and that the sentiment turned bearish due to the “risk off” mode of investors. The IV is still high

Here is the current market sentiment trend:

$SPY
$SPY is in range
Market Trend
Market Trend is bearish with high IV

 

For our dividend capture strategy,we look for good companies with over 3% yield. The companies distribute dividends in the next 10-30 days.  You can follow us on Twitter,  where we often publish more trade ideas.

The dividend capture watch-list:

Dividend capture strategy
Dividend capture strategy

Charts:

(9 Results. Charts are visible on site and not in email)


 

 

Try OptionSamurai for free:

  • Analyse those stocks directly in OptionSamurai
  • We have a dividend capture scanner that you can use to find trades or customize to fit your needs (you can try in the free demo):
Dividend Capture - Option Samurai
Dividend Capture – With Option Samurai

Option Samurai Free trial

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>