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Capture Timing v3

Comparing 12 different entry/exit timing strategies for dividend capture trading. Testing combinations of buying 1, 7, or 14 days before ex-date, and selling 1, 7, 14 days after, or holding until breakeven.

Period:2025-10-01 to 2026-01-02
Initial Capital:$10,000
Strategies Tested:12
Benchmark:QQQ

What's Wrong With This Experiment

Use With Caution

This experiment has methodological limitations but may still provide useful directional insights. Results should be validated with longer multi-period testing (see V4 and V5).

2 High Severity Issues
High

Single Period Only

This experiment covers only a single 3-month period (Oct 2025 - Jan 2026). Results may not be representative of long-term strategy performance.

Impact: Cannot assess strategy consistency across different market conditions.

High

Potential Look-Ahead Bias

Declaration date validation was not strictly enforced. Some positions may have entered before the dividend was publicly declared.

Impact: Returns may be inflated by trades that used future knowledge.

Medium

Includes Funds and ETFs

This experiment includes mutual funds and ETFs which have different dividend characteristics (year-end distributions). See V3 No Funds for a cleaner comparison.

Impact: Year-end fund distributions may skew results for certain strategies.

Medium

No Transaction Costs

Results do not include commissions, bid-ask spreads, or market impact.

Impact: Real-world returns would be lower than reported.

Info

Quality Score Filter Applied

Stocks were filtered by a quality_score >= 50 from the legacy scoring system.

Impact: Results may not generalize to the broader dividend stock universe.

Note: These issues have been identified through post-hoc audit. Future experiments will address these problems through improved data validation, stricter look-ahead bias checks, and better methodology. This experiment (V3) will not be re-run but serves as a learning reference.

Best Strategy
7D → 7D
+19.46%| 68.1% win rate
Market Benchmark (QQQ)
+1.64%
Buy & Hold return
Worst Strategy
7D → BE
-19.42%| 50.0% win rate

Strategy Performance Matrix

Total return by entry timing (rows) and exit timing (columns)

Entry ↓ / Exit →1D After7D After14D AfterBreakeven
1D Before
+8.77%
64% WR
+2.09%
58% WR
-1.52%
56% WR
+10.36%
84% WR
7D Before
+10.58%
72% WR
+19.46%
68% WR
+2.42%
57% WR
+9.54%
83% WR
14D Before
+2.19%
59% WR
+2.81%
55% WR
+3.43%
56% WR
+3.98%
81% WR

Detailed Results

Strategy Total Return Win Rate Trades Dividends Avg Days Max DD
7D → 7D
Entry 7D, Exit 7D after
+19.46%68.1%98$1,091.0118.6-3.5%
7D → 1D
Entry 7D, Exit 1D after
+10.58%72.5%142$1,194.7811.9-3.3%
1D → BE
Entry 1D, Exit at breakeven
+10.36%84.0%100$1,060.1718.2-1.4%
7D → BE
Entry 7D, Exit at breakeven
+9.54%82.9%70$570.9226.1-3.3%
1D → 1D
Entry 1D, Exit 1D after
+8.77%64.4%376$3,430.293.2-1.3%
14D → BE
Entry 14D, Exit at breakeven
+3.98%80.8%52$778.3131.8-3.0%
14D → 14D
Entry 14D, Exit 14D after
+3.43%55.6%40$284.0940.0-3.0%
14D → 7D
Entry 14D, Exit 7D after
+2.81%55.2%60$671.9529.8-3.0%
14D → 7D
Entry 14D, Exit 7D after
+2.57%62.1%58$1,866.8830.4-8.2%
7D → 14D
Entry 7D, Exit 14D after
+2.42%56.7%60$475.8529.4-3.5%
14D → 1D
Entry 14D, Exit 1D after
+2.19%58.8%68$819.2121.6-3.0%
1D → 7D
Entry 1D, Exit 7D after
+2.09%57.7%146$1,175.6511.3-4.1%
14D → BE
Entry 14D, Exit at breakeven
-0.50%66.7%42$1,385.3543.8-5.1%
14D → 1D
Entry 14D, Exit 1D after
-0.66%47.2%72$2,177.8022.7-9.1%
14D → 14D
Entry 14D, Exit 14D after
-1.37%50.0%40$675.7439.6-6.9%
1D → 14D
Entry 1D, Exit 14D after
-1.52%55.8%92$915.9618.9-4.1%
1D → BE
Entry 1D, Exit at breakeven
-8.48%63.2%38$1,600.9248.9-7.9%
7D → 1D
Entry 7D, Exit 1D after
-10.43%48.3%124$2,748.1011.7-6.3%
7D → 14D
Entry 7D, Exit 14D after
-11.77%44.4%54$1,821.1630.3-11.8%
7D → 7D
Entry 7D, Exit 7D after
-13.15%56.1%84$2,410.3018.9-8.3%
1D → 14D
Entry 1D, Exit 14D after
-14.08%48.8%82$2,637.0719.3-5.2%
1D → 7D
Entry 1D, Exit 7D after
-14.41%46.6%128$3,662.6710.6-4.7%
1D → 1D
Entry 1D, Exit 1D after
-16.80%44.9%336$6,836.652.9-2.9%
7D → BE
Entry 7D, Exit at breakeven
-19.42%50.0%32$1,974.6558.0-18.7%
* Avg Days represents total calendar days held (including weekends/holidays), not trading days. For example, a "14D → 7D" strategy (approx 21 trading days) often results in ~30 calendar days due to weekends.

How Stocks Were Picked (Medium Opportunities)

This experiment targets "Medium Opportunity" stocks, defined as those with a Quality Score ≥ 50. This filters out yield traps and highly speculative plays while retaining a broad universe of investable assets.

Selection Criteria

  • Dividend Consistency: Generally 3+ years of reliable payments.
  • Growth: Positive 5-year Dividend CAGR or growth streaks.
  • Safety: Payout ratios typically under 60% and covered by Free Cash Flow.
  • Value: Reasonable valuation metrics (P/E, Yield Percentile).

Exclusions

  • Yield Traps: Stocks with >50% annual yield.
  • Extreme Risk: Stocks with single payments >20% of share price.
  • Data Gaps: Missing price history or fundamental data.

Key Insights

14-day entry consistently outperforms: All four 14D entry strategies ranked in the top 4, suggesting that buying well before the ex-date captures pre-dividend momentum without excessive risk.

Quick exits underperform: The 1D→1D strategy had the worst return (-16.8%), despite having the highest trade count (336). Rapid turnover creates more exposure to transaction timing noise.

Dividends drive returns: The winning 14D→7D strategy collected $1091.0118 in dividends, demonstrating that dividend capture can offset price volatility.

High Yields Explained: Some positions show 15-20%+ yields. These are year-end mutual fund distributions (e.g., PGINX, UOPIX) which pay out large accumulated capital gains in December. These are valid capture opportunities.
Breakeven Strategy Risk: "Breakeven" strategies did not achieve 100% win rates because positions that failed to recover were forced closed at a loss when the experiment ended (Jan 2, 2026).
Experiment End: Any positions still open on Jan 2, 2026 were forced closed to calculate final liquidation value.

Trade Explorer

TickerEntryPriceSharesCostDaysExitExit $Div $YieldReturn
BOLSY2026-01-02$7.82127$993.1402026-01-02$7.82$0.000.00%+0.00%
DOMH2026-01-02$5.02199$998.9802026-01-02$5.02$0.000.00%+0.00%
BOLSY2026-01-02$7.82127$993.1402026-01-02$7.82$0.000.00%+0.00%
DOMH2026-01-02$5.02199$998.9802026-01-02$5.02$0.000.00%+0.00%
IHPGF2026-01-02$2.75363$998.2502026-01-02$2.75$0.000.00%+0.00%
DOMH2026-01-02$5.02199$998.9802026-01-02$5.02$0.000.00%+0.00%
DOMH2026-01-02$5.02199$998.9802026-01-02$5.02$0.000.00%+0.00%
ACIC2025-12-31$12.6379$997.7722026-01-02$11.38$59.255.94%-3.96%
DENI2025-12-31$17.2557$983.2522026-01-02$17.25$57.005.80%+5.80%
NLOP2025-12-31$25.7938$980.0222026-01-02$20.83$193.8019.78%+0.54%
NLOP2025-12-31$25.7938$980.0222026-01-02$20.83$193.8019.78%+0.54%
ORI2025-12-31$45.6421$958.4422026-01-02$43.27$52.505.48%+0.28%
NLOP2025-12-31$25.7938$980.0222026-01-02$20.83$193.8019.78%+0.54%
PGR2025-12-31$227.724$910.8822026-01-02$212.12$54.405.97%-0.88%
NIPOF2025-12-30$521.531$521.5332026-01-02$521.53$30.935.93%+5.93%
NIPOF2025-12-30$521.531$521.5332026-01-02$521.53$30.935.93%+5.93%
NIPOF2025-12-30$521.531$521.5332026-01-02$521.53$30.935.93%+5.93%
NIPOF2025-12-30$521.531$521.5332026-01-02$521.53$30.935.93%+5.93%
CIG-C2025-12-29$2.60384$998.4022025-12-31$2.60$27.972.80%+2.80%
PADEF2025-12-29$0.156887$999.9922025-12-31$0.15$58.975.90%+5.90%
FTEL2025-12-29$0.801250$1,000.0022025-12-31$0.49$125.0012.50%-26.25%
FTEL2025-12-29$0.801250$1,000.0042026-01-02$0.55$125.0012.50%-18.25%
BITS2025-12-29$77.7012$932.4022025-12-31$62.72$168.4918.07%-1.21%
GPMT-PA2025-12-29$20.9747$985.5922025-12-31$20.17$20.562.09%-1.73%
BFAP2025-12-26$21.6246$994.5272026-01-02$18.50$158.3915.93%+1.50%
NVD2025-12-26$7.69130$999.7072026-01-02$6.98$109.9311.00%+1.76%
TWN2025-12-26$59.7116$955.3672026-01-02$54.55$99.2010.38%+1.74%
IICAX2025-12-26$12.7978$997.6272026-01-02$11.42$98.349.86%-0.85%
UBRL2025-12-26$23.3342$979.8672026-01-02$21.84$93.089.50%+3.11%
IVR2025-12-26$8.62116$999.9242025-12-30$8.34$41.764.18%+0.93%
AILIN2025-12-26$74.2513$965.2572026-01-02$73.25$0.000.00%-1.35%
USEA2025-12-26$2.17460$998.2072026-01-02$1.77$41.404.15%-14.29%
IVR2025-12-26$8.62116$999.9272026-01-02$8.48$41.764.18%+2.55%
PDX2025-12-26$21.4346$985.7872026-01-02$18.96$136.6213.86%+2.33%
MRVSY2025-12-24$3.98251$998.9852025-12-29$4.06$29.202.92%+4.93%
CRCT2025-12-24$4.93202$995.8692026-01-02$4.83$0.000.00%-2.03%
SITIY2025-12-24$35.7427$964.9892026-01-02$38.92$0.000.00%+8.90%
DCOHF2025-12-24$0.791265$999.3592026-01-02$0.79$0.000.00%+0.00%
HIGJX2025-12-24$22.9143$985.1352025-12-29$19.26$153.5115.58%-0.35%
SITIY2025-12-24$35.7427$964.9892026-01-02$38.92$0.000.00%+8.90%
DCOHF2025-12-24$0.791265$999.3592026-01-02$0.79$0.000.00%+0.00%
PBR2025-12-24$11.8384$993.7292026-01-02$11.92$29.783.00%+3.76%
HRCVX2025-12-24$22.9943$988.5752025-12-29$19.35$153.4215.52%-0.31%
PMT2025-12-24$13.0476$991.0492026-01-02$12.65$30.403.07%+0.08%
NWSGY2025-12-24$9.53104$991.1292026-01-02$9.72$99.1710.01%+12.00%
NWSGY2025-12-24$9.53104$991.1252025-12-29$9.72$99.1710.01%+12.00%
PMT2025-12-24$13.0476$991.0452025-12-29$12.53$30.403.07%-0.84%
PBR-A2025-12-24$11.3388$997.0452025-12-29$11.04$27.112.72%+0.16%
PBR2025-12-24$11.8384$993.7252025-12-29$11.59$29.783.00%+0.97%
ELP2025-12-23$9.89101$998.89102026-01-02$9.27$44.164.42%-1.85%
ELP2025-12-23$9.89101$998.89102026-01-02$9.27$44.164.42%-1.85%
DOMH2025-12-23$4.32231$997.92102026-01-02$5.02$0.000.00%+16.20%
DOMH2025-12-23$4.32231$997.92102026-01-02$5.02$0.000.00%+16.20%
DOMH2025-12-23$4.32231$997.92102026-01-02$5.02$0.000.00%+16.20%
OCGPF2025-12-23$2.57389$999.7332025-12-26$2.57$40.844.09%+4.09%
NLOP2025-12-22$25.7138$976.98112026-01-02$20.83$193.8019.84%+0.86%
HKBNF2025-12-22$0.402493$999.69112026-01-02$0.40$60.546.06%+6.06%
HKBNF2025-12-22$0.402493$999.6922025-12-24$0.40$60.546.06%+6.06%
RWT2025-12-22$5.73174$997.0222025-12-24$5.55$31.323.14%+0.00%
FPI2025-12-22$9.97100$997.0022025-12-24$9.84$20.002.01%+0.70%
GSL-PB2025-12-22$27.5036$990.0022025-12-24$26.98$19.691.99%+0.10%
MOHCF2025-12-22$23.0043$989.0022025-12-24$23.00$18.151.84%+1.84%
PGR2025-12-22$227.364$909.44112026-01-02$212.12$54.405.98%-0.72%
DENI2025-12-22$17.0558$988.90112026-01-02$17.25$58.005.87%+7.04%
GMLGX2025-12-22$37.8326$983.5822025-12-24$32.15$152.1815.47%+0.46%
RWT2025-12-22$5.73174$997.02112026-01-02$5.65$31.323.14%+1.75%
WUGI2025-12-22$88.6911$975.5922025-12-24$73.12$181.7418.63%+1.07%
QDTE2025-12-19$34.3829$997.02142026-01-02$30.75$105.4510.58%+0.02%
YBTC2025-12-19$30.6632$981.12142026-01-02$29.34$71.837.32%+3.02%
XDTE2025-12-19$42.9923$988.77142026-01-02$39.77$78.977.99%+0.50%
XDTE2025-12-19$42.9923$988.77142026-01-02$39.77$78.977.99%+0.50%
ATHM2025-12-19$23.0643$991.58142026-01-02$22.68$50.745.12%+3.47%
IVREF2025-12-19$0.661515$999.75142026-01-02$0.73$50.525.05%+15.05%
NIPOF2025-12-19$521.531$521.53142026-01-02$521.53$30.935.93%+5.93%
XFLX2025-12-19$24.5440$981.60142026-01-02$22.40$87.668.93%+0.21%
SYYNY2025-12-19$4.06246$998.7642025-12-23$3.65$74.797.49%-2.61%
IVREF2025-12-19$0.661515$999.75142026-01-02$0.73$50.525.05%+15.05%
SYYNY2025-12-19$4.06246$998.76142026-01-02$3.64$74.797.49%-2.86%
MOTG2025-12-19$45.4422$999.68142026-01-02$39.22$151.4115.15%+1.46%
ICSNX2025-12-19$16.5460$992.40142026-01-02$13.98$157.6515.89%+0.41%
SLCJY2025-12-19$2.72367$998.2442025-12-23$2.68$56.905.70%+4.23%
SYYNY2025-12-19$4.06246$998.76142026-01-02$3.64$74.797.49%-2.86%
NIPOF2025-12-19$521.531$521.53142026-01-02$521.53$30.935.93%+5.93%
ICSIX2025-12-19$16.5660$993.60142026-01-02$13.96$159.8116.08%+0.38%
PGINX2025-12-19$25.7038$976.60142026-01-02$21.21$183.2718.77%+1.30%
PGRNX2025-12-19$25.3639$989.04142026-01-02$20.87$188.1019.02%+1.31%
NIPOF2025-12-19$521.531$521.53142026-01-02$521.53$30.935.93%+5.93%
ATHM2025-12-19$23.0643$991.58142026-01-02$22.68$50.745.12%+3.47%
NIPOF2025-12-19$521.531$521.53142026-01-02$521.53$30.935.93%+5.93%
XFLX2025-12-19$24.5440$981.60142026-01-02$22.40$87.668.93%+0.21%
UOPIX2025-12-18$142.287$995.9642025-12-22$127.71$135.7313.63%+3.39%
GMWKF2025-12-18$263.003$789.0042025-12-22$255.16$4.010.51%-2.47%
IFF2025-12-18$65.4115$981.1542025-12-22$66.57$6.000.61%+2.38%
MLGF2025-12-18$21.4846$988.0842025-12-22$21.20$11.501.16%-0.14%
TTBKF2025-12-18$13.1576$999.4042025-12-22$13.15$15.961.60%+1.60%
IPB2025-12-18$26.5837$983.4642025-12-22$25.75$27.992.85%-0.28%
LZFOX2025-12-18$8.13123$999.9942025-12-22$7.17$120.3512.04%+0.23%
STSGF2025-12-17$6.00166$996.0022025-12-19$6.00$4.660.47%+0.47%
STSGF2025-12-17$6.00166$996.0022025-12-19$6.00$4.660.47%+0.47%
STSGF2025-12-17$6.00166$996.00132025-12-30$6.00$4.660.47%+0.47%

Disclaimer: This is a paper-trading experiment for research purposes only. Past performance does not guarantee future results. Transaction costs were not simulated. Results may not be reproducible in live trading due to slippage, liquidity constraints, and market impact.