Monthly Income Rotator Strategy

The Monthly Income Rotator strategy maintains a portfolio that always contains stocks with upcoming ex-dividend dates in the next 7-14 days. This creates a continuous stream of dividend income every month.

Strategy Philosophy

Rather than chasing individual dividend payments, this strategy builds a "dividend conveyor belt." At any given time, some holdings are approaching their ex-date (about to pay), some just passed (recently paid), and some are exiting (making room for new captures).

The result: predictable, monthly dividend income without the extreme turnover of pure capture strategies.

Entry Rules

• Ex-date timing: 1-14 days until ex-dividend date
• Minimum yield: Next dividend ≥ 0.3% of current price
• Quality threshold: Quality score ≥ 55
• Payout safety: No high payout ratio risk flag

Exit Rules

• Time-based exit: Sell 7 days after ex-date
• Quality degradation: Sell immediately if quality drops below 45

Portfolio Details

• Rebalance frequency: Daily
• Target positions: 20 holdings
• Position sizing: Equal weight
• Sector limit: Max 25% per sector
• Expected turnover: 300-400% annually

Who Is This For?

Income-focused investors who want regular dividend payments without extreme trading frequency. The longer holding period and sector diversification make this more suitable for tax-advantaged accounts.

Risk Considerations

• Limited candidates during certain calendar periods
• Sector concentration if ex-dates cluster by industry
• Lower capture count than more aggressive strategies