Dividend Turbo Stocks

Dividend Turbo Shares

Below you will find a list of some dividend turbo stocks

What is the dividend?

The dividend is a payment to shareholders. The dividend is a share in the profits of the company. Here, shareholders are remunerated in cash, which can be regarded as a kind of wage, because an investment in the respective company also always means a certain willingness to take risks.

The dividend yield indicates what percentage of the share price is paid out to shareholders as a dividend. This can be calculated quite simply by dividing the dividend by the share price.

A high dividend yield is often an enticement to buy the share, but the overall picture must always be considered here. Not every company with a high dividend yield is a quality company. In addition, the dividend growth rate, the payout ratio and the history should always fit.

Dividend Turbo Strategy Explained

Buy and sell based on dividend yield. With the Dividend Turbo Strategy, it is possible to determine buy or sell signals based on the dividend yield, which also allows you to determine very quickly whether a dividend stock is undervalued or overvalued.

With this strategy, you look at the historical time trend and see whether the current dividend yield is high or low, which gives you a clear signal to buy or sell a dividend turbo stock.

In our Dividend Turbo Tool, the fair value of the dividend is constantly displayed based on the historical dividend yield at the current time.

Based on the fair value of the dividend, it can be seen at a glance whether a share is overvalued or undervalued at the current price.

Caution with supposedly good dividend yields

High yield does not equal quality business. This strategy is not applicable to all companies with a perceived high dividend, as non-quality companies can often experience fluctuations and other unpredictable reductions in dividends.

Filter quality companies

Continuity is considered a sign of quality in dividends. Quality stocks can be filtered by looking at the dividend staircase. This shows the increase in dividends over the years. There should be continuous growth here for the stock to be eligible for the dividend turbo strategy.

In times of crisis, there are often dividend cuts at companies that cannot afford to pay out to shareholders, for example because they are too heavily indebted. This can then be seen in the form of declines in the dividend staircase.

In addition, one should also always pay attention to the forecasts. Our tool shows already announced dividend cuts. Often, these are announced by the management several months in advance. Here, the strategy can also be misleading, as there is a false signal.

Example Undervalued share Johnson & Johnson :

Example Overvalued share Microsoft :

Compatibility with buy & hold strategy

Entry Point. Many investors look for a suitable entry point in solid quality companies with a good dividend yield. This is often very difficult to determine fundamentally. This is where the dividend turbo strategy comes into play. With this strategy, it is very easy to determine whether a dividend turbo stock is undervalued or overvalued.

So if you follow the classic buy & hold strategy, have analyzed the company fundamentally, then you can use our tool perfectly to find the best possible entry in terms of dividends.