Dividend-Alarm Rebalancing Options © Ainoa - Fotolia.comIn this weekly report, possible options are discussed using dividends rebalancing. Especially in neutral market phases, with Dividend Alarm Indicator these are values between 40% and 60%, you can further optimize your portfolio in terms of profitability.

Shortly said – The basic idea in dividend rebalancing: You part with stocks that have generated a sale signal and invest the capital in comparable stocks with a current buy signal.

As a result, the budget currently invested in expensive and overvalued low-dividend stocks is invested in industry peers that are currently cheap and undervalued while also generating higher dividend income.

In order to make a real comparison of individual positions, the focus must always be on the net dividend yield (tax deduction from the gross dividend). For this reason, certain comparisons always refer to the net dividend yield.

Important: At this point we would like to point out that the simple generation of a signal does not mean an immediate recommendation for action! A stock that has activated a buy-signal may therefore not be bought blindly and immediately! The signal activation is only intended to indicate a rare event. Why this happened with a stock and whether the stock is actually worth buying or selling must first be clarified through own research.

Sector Agriculture
  • Archer Daniels Midland
    ADM
    3.02%
  • Baywa
    ETR:BYW6
    3.19%
  • Mosaic
    NYSE:MOS
    0.37%

Two solid candidates are available under the heading of agriculture. At the latest in a buying phase, I would put both values into my portfolio. Mosaic has recently reduced its dividend and those who do not want to accept this can directly invest in one of the two stocks, which can offer very good dividend continuity.

2 Buy Signals 1 Sell Signal
Sector Automobile
  • BMW Vz.
    ETR:BMW3
    4.95%
  • Daimler
    ETR:DAI
    5.45%
  • Sixt VZ
    ETR:SIX3
    2.68%

Two solid candidates are available under the heading of autombile. At the latest in a buying phase, I would put both values into my portfolio. Sixt generates a selling signal and those who do not want to accept this can directly invest in one of the two stocks, which can offer very good dividend continuity.

2 Buy Signals 1 Sell Signal
Sector Banking
  • Commonwealth Bank of Australia
    ASX:CBA
    6.06%
  • Westpac
    ASX:WBC
    6.26%
  • Credit Suisse
    VTX:CSGN
    1.46%
  • JPMorgan Chase
    JPM
    1.97%
  • Toronto-Dominion Bank
    TSE:TD
    2.79%
  • M&T Bank
    NYSE:MTB
    1.63%

Two solid candidates are available under the heading of banking. At the latest in a buying phase, I would put both values into my portfolio. Some of the sales candidates have also overcome the additional hurdle of Canadian and Swiss withholding tax.

2 Buy Signals 4 Sell Signals
Sector Beverages
  • Anheuser-Busch InBev
    NYSE:BUD
    4.50%
  • Coca-Cola
    KO
    3.71%
  • Greene King
    LON:GNK
    5.96%
  • Molson Coors
    NYSE:TAP
    2.71%
  • PepsiCo
    PEP
    3.82%
  • Brown-Forman B *
    NYSE:BF.B
    1.10%
  • Pernod-Ricard
    EPA:RI
    1.57%

Five solid candidates are available under the heading of beverages. At the latest in a buying phase, I would put some of the companies into my portfolio. Two stocks are generating a selling signal and those who do not want to accept this can directly invest in one of the five stocks, which can offer very good dividend continuity.

5 Buy Signals 2 Sell Signals
Sector Chemistry
  • Church & Dwight
    NYSE:CHD
    1.85%
  • Hitachi Chemical
    FRA:HIM
    1.22%
  • Sherwin-Williams
    NYSE:SHW
    0.88%
  • Symrise
    ETR:SY1
    1.24%

Only one solid candidate is available under the heading of chemistry. At the latest in a buying phase, I would put Church & Dwight into my portfolio. Three stocks are generating a selling signal and those who do not want to accept this can directly invest in Church & Dwight, which can offer very good dividend continuity.

1 Buy Signal 3 Sell Signals
Sector Consumption
  • Procter & Gamble
    PG
    3.93%
  • Beiersdorf
    ETR:BEI
    0.72%

Only one solid candidate is available under the heading of consumption. At the latest in a buying phase, I would put Procter & Gamble into my portfolio. Beiersdorf is generating a selling signal and those who do not want to accept this can directly invest in Procter & Gamble, which can offer very good dividend continuity.

1 Buy Signal 1 Sell Signal
Sector Foods
  • B+G FOODS
    NYSE:BGS
    7.01%
  • Kraft Heinz Foods
    NASDAQ:KHC
    4.22%
  • General Mills
    GIS
    4.61%
  • Kellogg
    K
    3.50%
  • Conagra Brands
    NYSE:CAG
    2.25%
  • McCormick
    NYSE:MKC
    1.95%
  • Pinnacle Foods
    NYSE:PF
    2.09%

Four solid candidates are available under the heading of foods. At the latest in a buying phase, I would put some of the companies into my portfolio. Three stocks are generating a selling signal and those who do not want to accept this can directly invest in one of the four stocks, which can offer very good dividend continuity.

4 Buy Signals 3 Sell Signals
Sector Insurance
  • Aflac
    AFL
    4.60%
  • Axa
    EPA:CS
    5.57%
  • UnitedHealth Group
    NYSE:UNH
    1.24%

Two solid candidates are available under the heading of insurance. At the latest in a buying phase, I would put some of the companies into my portfolio. UnitedHealth Group ist generating a selling signal and those who do not want to accept this can directly invest in one of the two stocks, which can offer very good dividend continuity.

2 Buy Signals 1 Sell Signal
Sector Media
  • Comcast
    NASDAQ:CMCSA
    2.36%
  • Omnicom
    NYSE:OMC
    3.20%
  • ProSiebenSat.1
    ETR:PSM
    7.73%
  • Walt Disney
    DIS
    1.64%
  • Axel Springer
    ETR:SPR
    3.03%
  • Pearson
    LON:PSON
    1.87%
  • Vivendi
    EPA:VIV
    1.94%

Four solid candidates are available under the heading of media. At the latest in a buying phase, I would put some of the companies into my portfolio. Three stocks are generating a selling signal and those who do not want to accept this can directly invest in one of the four stocks, which can offer very good dividend continuity.

4 Buy Signals 3 Sell Signals
Sector Pharma
  • Amgen
    NASDAQ:AMGN
    3.00%
  • Cardinal Health
    NYSE:CAH
    3.35%
  • CVS Health
    CVS
    2.99%
  • Novo Nordisk
    NVO
    2.52%
  • Sanofi
    EPA:SAN
    4.69%
  • Baxter
    NYSE:BAX
    1.07%

Five solid candidates are available under the heading of pharma. At the latest in a buying phase, I would put some of the companies into my portfolio. Baxter is generating a selling signal and those who do not want to accept this can directly invest in one of the five stocks, which can offer very good dividend continuity.

5 Buy Signals 1 Sell Signals
Sector Raw Materials
  • Alliance Resource Partners
    NASDAQ:ARLP
    11.33%
  • Freeport-McMoran Copper
    FCX
    0.00%

Alliance Resource Partners is available under the heading of raw materials. At the latest in a buying phase, I would put it into my portfolio. Freeport-McMoran Copper is generating a selling signal and those who do not want to accept this can directly invest in Alliance Resource Partners, which can offer very good dividend continuity.

1 Buy Signal 1 Sell Signal
Sector Telekom
  • AT&T
    T
    6.21%
  • CenturyLink
    NYSE:CTL
    11.23%
  • Freenet
    ETR:FNTN
    6.31%
  • Qualcomm
    NASDAQ:QCOM
    4.37%
  • Vodafone
    LON:VOD
    6.52%
  • Drillisch
    ETR:DRI
    2.58%

Five solid candidates are available under the heading of telekom. At the latest in a buying phase, I would put some of the companies into my portfolio. Drillisch is generating a selling signal and those who do not want to accept this can directly invest in one of the five stocks, which can offer very good dividend continuity.

5 Buy Signals 1 Sell Signal
Sector Textile
  • HanesBrands
    NYSE:HBI
    3.58%
  • Limited Brands
    NYSE:LB
    7.22%
  • Cintas
    NASDAQ:CTAS
    0.88%

Two solid candidates are available under the heading of textile. At the latest in a buying phase, I would put some of the companies into my portfolio. Cintas is generating a selling signal and those who do not want to accept this can directly invest in one of the two stocks, which can offer very good dividend continuity.

2 Buy Signals 1 Sell Signal
other Sectors

Further Dividend-Alarm rebalancing options are available in the sectors EnergyIndustry, Finances, Industry and Oil & Gas.

Best you have a closer look at these categories, because there are numerous candidates here and a listing according to the above scheme does not make sense.

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