Month: August 2023

There are different categories of Dividend Capture Strategies. They are mainly as follows.

Passive DCS

For Passive DCS, the potential Annual Dividend Payout Rate (ADPR) is around 4% – 8% for a regular investment or investment-linked plan. This is the easiest to deploy among all the strategies. You only need to select a suitable portfolio of dividend paying funds according to your expected dividend payout rate, your investment time horizon and your investor risk profile.

Monitored DCS

For Monitored DCS, the potential Annual Dividend Payout Rate (ADPR) is around 8% to 12 – 14% for a regular investment or investment-linked plan. This is the most complex DCS Deployment among all the dividend capture strategies. As the name suggests, this strategy requires monitoring of the fund prices on top of those of Passive DCS in terms of expected dividend payout rate, investment time horizon and investor risk profile.

Scheduled DCS

Under Scheduled DCS, there are 2 other sub-categories, namely DCS-S2 and DCS-S3. This category also has the highest potential Annual Dividend Payout Rate (ADPR) is around 20% to 28% – 32% for a regular investment or investment-linked plan. The potential ADPR for DCS-S2 is around 20%-24% and 24% – 32% for the DCS-S3. The schedule DCS is also the most systematic approaches among all the Dividend Capture Strategies.

This deployment requires careful selection of suitable platforms, detailed planning of the DCS Schedules, continuous monitoring and analysis of the funds, in terms of dividend payout rate and dividend capturing executions, activities and etc. Occasional intervention during deployments expected.

Although the Scheduled DCS appears to require a lot of detailed plannings, selections to executions and monitoring, it can be made easy to execute with a professional DCS Deployment Support Service Providers. This provider typically utilised AI to help them achieve the above support services to their clients.

With a professional DCS Deployment Support Service Provider, your DCS-S2 and DCS-S3 deployment effort can be as easily achieved in less than 15mins per month.

Yes… there’s no typo error above. All you need is a hassle free 15mins per month to deploy DCS-S2 or DCS-S3 with a professional DCS Deployment Support Service Provider.

Therefore, it’s critical for both corporate and individual investors to engage a professional DCS Deployment Support Service Provider when deploying Scheduled DCS (DCS-S2 or DCS-S3) to ensure the success of your Scheduled DCS deployment.

Please look out for the coming article for the criteria checklist for a professional DCS Deployment Support Service Provider. You can screen your service provider with the criteria checklist.

We have researched into many successful examples of individuals deploying DCS – Dividend Capture Strategy. However, let’s take a look at one deployed by a company instead.

This company is formed by 3 individuals. They decided to invest a total of about $400,000 over a period of 3 years and “self-fund” their regular investment plan over a period of 10 years.

As a company, they are looking at high liquidity, moveable and transferable assets and easy & low operation.

High Liquidity of Investment Plan

The above graph reflects both 20% projected dividend (Green) and actual dividend received (Red) from 27 Nov 2019 till 08 Jun 2023. The company received $316,252.23 instead of the projected $259,333.32. This graph reflected the high liquidity of the the investment via Dividend Capture Strategy for the the company.

From Nov 2019 till Jun 2023, there wasn’t a SINGLE DAY when the account value (Investment Cash Value + Cash Equivalent) fall below the invested capital of $400,000. During this period of time, the economy underwent the precedented Covid 19 Pandemic and the Russian-Ukraine War.

Increasing Insurance Coverage for Shareholders

With no additional invested capital, all the shareholders are enjoying an increasing insurance coverage through the investment via the regular investment linked plans bought by the company. Therefore through this arrangement, all the shareholders will get back more than capital invested in event of death or terminal illness.

The above shareholders only invested $310,000, $60,000 and $30,000 respectively. Their insurance coverages are expected to grow at the above rate till Year 10 based on their current investment plan.

Financial Reports from 2021 – 2023

In the last 3 company financial reports, they showed the increasing assets, increasing revenue and increasing gross profit of the company.

Moveable and Transferable Feature of the Investment

Both the investment portfolio and the insurance feature of the regular investment plan can be easily transferred from the company to any individual. It can likewise be transferred from any individual to another individual. This investment is highly transferable.

Easy and Low Operation Cost

Currently this company do not have any overhead except registered office address (virtual office) cost, book-keeping and ACRA and IRAS annual reporting & registration cost. Last but not least a nominal ($10) monthly banking charges.