Dividend Stacking Strategy

The Dividend Stacking strategy is designed for one goal: maximize total dividend income captured per year. It prioritizes the highest-yielding stocks with upcoming ex-dates and weights positions by their expected dividend contribution.

Strategy Philosophy

While other capture strategies treat all positions equally, Dividend Stacking allocates more capital to higher-yielding opportunities. A stock paying a 1% quarterly dividend gets more weight than one paying 0.3%.

The math is simple: if you're capturing dividends, capture bigger ones.

Entry Rules

• Ex-date timing: 0-7 days until ex-dividend date (tighter window)
• Minimum yield: Next dividend ≥ 0.5% of current price (higher bar)
• Quality threshold: Quality score ≥ 50
• Safety checks: No high leverage, no payout ratio risk

Exit Rules

• Time-based exit: Sell 5 days after ex-date
• Quality degradation: Sell immediately if quality drops below 40

Portfolio Details

• Rebalance frequency: Daily
• Target positions: 25 holdings
• Position sizing: Yield-weighted (higher yield = larger position)
• Expected turnover: 400-500% annually

Who Is This For?

Income-maximizing investors who prioritize dividend dollars over capital preservation. Best suited for those who measure success by total dividends received, not total return.

Risk Considerations

• May concentrate in high-yield sectors (energy, REITs, financials)
• Higher-yielding stocks often have larger ex-date price drops
• Lower quality threshold allows riskier positions
• Yield-weighting amplifies sector concentration risk