Capture + Hold Hybrid Strategy

The Capture + Hold Hybrid strategy bridges dividend capture and traditional dividend growth investing. It uses upcoming ex-dividend dates as an entry timing signal for stocks you'd want to own anyway—quality dividend growers with proven track records.

Strategy Philosophy

Why buy a great dividend stock on any random day when you could buy it right before it pays you? This strategy only enters new positions when an excellent stock has an upcoming ex-date, ensuring your first dividend arrives almost immediately.

Once purchased, positions are held for months—not days. The ex-date is just the entry trigger, not the exit signal.

Entry Rules

• Ex-date timing: 1-14 days until ex-dividend date
• Tier requirement: Must be Tier 1 or Tier 2
• Quality threshold: Quality score ≥ 65 (highest bar)
• Dividend yield: ≥ 2%
• Growth track record: 3+ year dividend growth streak

Exit Rules

• Quality degradation: Sell if tier falls below 1-2
• Quality score drop: Sell if quality drops below 50
• Growth break: Sell if dividend growth streak breaks

Portfolio Details

• Rebalance frequency: Daily (but low expected turnover)
• Target positions: 20 holdings
• Position sizing: Equal weight
• Minimum hold: 30 days
• Expected turnover: 100-200% annually (lowest of capture strategies)

Who Is This For?

Long-term dividend growth investors who appreciate the psychological benefit of immediate dividends on every purchase. This is the most "traditional" of the capture strategies—closest to a buy-and-hold approach.

Risk Considerations

• May be slow to build full portfolio if ex-date timing doesn't align with opportunities
• Could miss great stocks if their ex-date window was missed
• Less differentiated from traditional dividend strategies
• Quality degradation may force sales at inopportune times