Buy & Sell Signals

The Dividend-Alarm signals are beside the Indicator the second important column of the Dividend-Alarm strategy.

Unlike the Dividend-Alarm indicator which supervises the total market, the Dividend-Alarm signals are activated at every single stock. So each one of the 350 stocks supervised by the Dividend-Alarm has a purchase signal or a sell signal generated.

Even if there are always purchase signals as well as sell signals, the interplay with the Dividend-Alarm indicator leads to one extraordinary performance.

What are the Dividend-Alarm signals?

The Dividend-Alarm indicator shows to us investors WHEN we should get active on the market the Dividend-Alarms show us on WHICH shares we exclusively should put our attention on.

Only the connection between indicator (buy phase) and signals (buy signal) offers the best possible chance risk relationship. For all “not Buy & fairly investors” the constellation of sales phase (indicator) and selling signal (signal) offers also the option to carry out its profits in particular market phases. Buy & Hold investors should change in this case into the “ Not-buying-Mode “.

For this interplay (indicator & signals) works smoothly, any single share supervised by the Dividend-Alarm is regularly subjected to an exact check. With different calculations and valuation methods, we search after long-term samples to be able to hand in a solid forecast.

Every single signal of a share is charged in irregular intervals as well as at changes of the database. This partly works automated and in another place also manually.

Therefore, there are no fixed signal amplitudes since these adapt again and again to the current assessment in the context to the historical consideration. The Dividend-Alarm is a self-optimized system.

Visualization of the Dividend-Alarm signals

To better visualize the theoretical explanation, we can show you a graphic. It is not a component of the weekly evaluation of the dividend alarm members and shows only a simplified representation of the topic for this article.

You see a simplified representation of the development of a quite certain share over many decades. The black line announces the development of course cleared up. The blue markings are stock split ups. The green line announces the development of the purchase signal and the red the sell signal. The green and red arrows announce the activation of the respective signals.

As you can see with the graphic, a share is after the activation of a signal in this condition more or less long. Normally you should have enough time to take a better look at the share and to decide whether it is possible for a transaction. With the Dividend-Alarm one must no longer hectically proceed on the markets.

Even if the chart was made anonymous for this article, it shows the development of the best share of the world with real numbers. If you like to know which stock and why we have sold this stock last, please put down your name on our newsletter free of charge. With different instances, incl. these graphics, we explain how to use the Dividend-Alarm in the practice.

Possible applications of the Dividend-Alarm signals

We would like to point out that the simple generation of a buy signal or a sell signal does not mean any direct and immediate action recommendation!

A share which has activated a signal should in principle not be immediately bought or sold. The time has come to deal with the stock more nearly and to check what is about the currently historical assessment.

Key financial data should be checked but also the current news and further information about the enterprise. The view is also decisive just like the continuation of an investors friendly and reliable dividend payout policy.

One can put a special attention here on dividend aristocrats (more than 25 year dividends increased) and on enterprises that have not lowered their dividend for many decades.

While the market is in a neutral phase, it can make sense to deal with the dividends rebalancing options. These are the third part of the weekly evaluation for the Dividend-Alarm members and are described exactly in this contribution.

What does the Dividend-Alarm members expect?

Special Row with Singnal LevelA new evaluation of the Dividend-Alarm signals is posted every week, always on Wednesday, in the member area. All shares that generate a purchase signal or a sell signal are listed there.

All other stocks which had not generate any signal are not component of the evaluation.
The dividend alarm is strategy to deal only with the shares which has generated a signal the meaning. These are in a neutral phase, therefore remain unnoticed all shares.

As soon as the Dividend-Alarm indicator has found a purchase phase or sales phase out everyone receives Dividend-Alarm members a special newsletter and the evaluation of the signals as well as the indicator is carried out during an active phase daily.

Functions of the interactive table

Besides some topics and specialties processed by us, the principal ingredient of the weekly evaluation is the interactive data table. Separated for purchase signals and sell signals.

The table view is identical with the table of the shares supervised by the Dividend-Alarm and contains besides the columns name, sector, contains country, symbol, number (distribution interval) and dividend yield further columns.

The additional columns for the members are about the values for the dividend continuity and the per cent value of the signal level.

Dividend continuity: This number shows how many years an enterprise has not lowered the dividend.

Signal level: This value shows how far a stock has removed from its Dividend-Alarm signal. The higher the signal level, the more you should weight it. You can read the exact handling of our signal level here. 

You can sort, search as well as filter the data of the table. You can sort them for example up- and descending and search and filter according to different concepts. For example for countries (enter country contractions), lines of business, enterprise names, distribution intervals, free text or also by means of * after dividends aristocrats

You find examples of possible filters and selection possibilities on the page of the shares supervised by the Dividend-Alarm.