Please note that to use DividendMax effectively you need a good mathematical brain as well as a good understanding of financial markets.
We formed DividendMax as a reaction to the ubiquitous state of fear in the equity markets. Interest rates in the U.K. have fallen to a point where real returns on savings are negative (i.e. taking account of inflation) Short term Government bond yields are only about 0.5% and even the ten year bond is only yielding 2.5%.
What this really means is that no matter where you put your money in so called safe havens, your capital's purchasing power is effectively falling because inflation is currently running over 1%.
So, we developed DividendMax to help people get around this situation. There are plenty of companies out there that are paying more than the rate of inflation over sustained time periods. Our tools identify those companies and from a yield perspective (not capital) and provide some highly attractive information.
Our philosophy is one of relatively long tem investing, but with active trading alongside this. We predict out income for the next two years for all of the companies in the product.
Unlike other dividend websites, we have no interest in providing our users with thousands of companies to choose from. We have just over 1000 companies on our database. This allows us to focus intensely on these companies to provide the highest quality dividend information available anywhere. Amazingly, though, focusing on a relatively number of companies with excellent track records, still gives us over 99% of all of the dividends paid out by value in the U.K.
The key to our major product, OptimizerMax is for investors to recognise the timing and the scale of dividend payments. This is what this product does. Our default setting is the 3 dividend optimizer, which offers our members a 12 to 18 month view. The sweet spot is when the three dividend optimizer is looking at two finals and an interim. As you approach the ex dividend date of the first of the finals, the return over just slightly more than one year starts to look increasingly attractive. Analysts and commentators always quote full year historic yields, but so much more can be achieved with the correct timing by looking forward. Over a 52 to 56 week timescale it is possible to pick up three dividends. We then annualise this into an APR to give the real return. We call this the annualised yield.
We believe that the users of our product should be able to tailor their choices to suit their risk profile. That is why we provide the filter with OptimizerMax. To adjust your risk profile down, set the filter to larger companies with a record of 4 or more consecutive dividend increases, a forecast dividend increase and a dividend cover that is considered safe (more than 2) or even safer.
Additionally, we scour the markets every day for information on companies and we comment about it. For instance, when special dividends are paid. We now cover special dividends within our tools.
- Porvair increases its 2017 interim dividend by 7%
- BCA Marketplace increases its 2017 full year dividend by 12.5%
- Photo-me increases its 2017 full year dividend by 20%
- Northgate increases its 2017 full year dividend by 8%
- Berkeley Group 2017 full year results
- Johnson Matthey increases its 2017 full year dividend by 5%
- Cranswick increases its 2017 final dividend by 19.7%
- Homeserve increases its 2017 full year dividend by 20%
- Grainger increases its 2017 interim dividend by 10%
- Dairy Crest increases its 2017 final dividend by 2%