Dividend recommendations for upcoming weeks

 With markets sliding into a dip many investors are concerned with safer investments. One of the safer options are dividend stocks. While there's a bit less of dividends in December there are still some interesting options. 

Today, I want to explain the table that MBAAssist provides with dividend recommendations. 

Firstly, the columns. Ex-date is ex-dividend date. Ticker is obviously the ticker. Dividend yield shows the dividend yield in the upcoming payout*. Best rating is MbaAssist's custom rating, which takes into consideration volatility, potential upside movement, financial stability of the company, and other factors. LOWER rating is better. Finally, buy days in advance shows a predictive evaluation of the best price to buy the stock to hold till the dividend date.

Let's focus on that last one a bit more. We'll take the example of SBLK - the second recommendation in the table above. Today is three days before the ex-dividend date. And the price is obviously climbing:

However, the recommended buy in advance date was Thursday, 2  Dec (ex-dividend date - 5 business days). Let's see what was the price on Thursday:

As you can see, anyone who followed the recommendation from last week, could have got the stock at a superior price at approximately 20.30. That would have already made 10% selling it today.

Further, even those who forget to sell, are likely to get the dividend of 5$ and then still sell at a good price after holding it for some time. This is shown in the figure below where the orange line shows the stock price and vertical lines correspond to the dates of ex-dividend.

So, this is how to use the dividend recommendations of MBAAssist. For now, we publish them here or on LinkedIn. In the future, they will be available through an API.

*Note that the data is sometimes outdated in online databases, so please verify with your broker when submitting a trade.