Rebalancing Options

The Dividend-Alarm rebalancing options are components of the weekly evaluations for the Dividend-Alarm members. It is here an industry-specific evaluation of the Dividend-Alarm signals.

With the Dividend-Alarm indicator these are values between 40% and 60%, one can further optimize his depository with respect to the earning capacity just in neutral market phases.

What is dividends rebalancing?

The basic idea of dividends Rebalancing briefly: One separates of stocks which ones has a sell signal generated and invest the capital in stocks with a purchase signal within the same line of business.

The regrouping is carried out from overvalued stocks to stocks from the same line of business which are judged favourably. Aim of the strategy of the Dividend-Alarm is a cash-flow permanently increasing from taken dividends.

With the Rebalancing of the invested capital one can optimize his dividend yield. At the same time one parts with expensive stocks and his capital stacks into favourable stocks. The neutral phase of the Dividend-Alarm Indicator for this procedure indicator is best suited.

In principle, we pursue a Buy & Hold strategy. A depository, which was organized with the Dividend-Alarm strategy, do usually not ensue Rebalancing options.

Example of Rebalancing options

The Rebalancing options are reported every week for the Dividend-Alarm members. The individual overviews are listed in the member area like at the following example.

The members can immediately see depending on line of business how many sales candidates they are and how many purchase candidates stand opposite them.

We write a couple of indications for the respective trade possibilities which have recognized the real potential or point by other important knowledge.

In the overview you see an example of the Rebalancing options from the pharmaceutical line of business.

Sector Pharma
  • Company 1
    Symbol
    2.57%
  • Company 2
    Symbol
    2.57%
  • Company 3
    Symbol
    0.32%
  • Company 4
    Symbol
    1.03%
There are current four Rebalancing candidates in the category of pharmaceutical. The two sell signals are for long time weighted expensively and they only offer a proportionally low dividend yield. On the opposite you find two large enterprises with a considerably higher yield potential and both enterprises moreover are judged favourably.
2 buy signals 2 sell signals

The application of the Rebalancing options is suited best during the neutral phase (40% – 60%) of the Dividend-Alarm indicator. In the evaluations of the Dividend-Alarm members, the clear names as well as the symbols are apparent too.

The first step should be for the sales candidates. Which of the stocks listed here with sell signal are in your depository? Only concentrate on these values and try find out why the stocks are overvalued and expensive and whether a sale offers is worth.

If you think that the sell signal is confirmed, the next stept would be the check of the fitting purchase candidates. You must check whether a purchase candidate is suitable for the admission to your depository and the exchange with your sales candidate.

The aim should be to part with really expensive stocks an to restack the capital into shares that are exceptionally favourably. You optimize your dividend yield at the same time which can often even be multiplied.

The Rebalancing options are a support to maximize your takings from dividends without spending further capital.