Opportunistic Capture Strategy

The Opportunistic Capture strategy combines dividend capture with value investing. It only captures dividends from high-quality stocks that are temporarily undervalued—betting that these stocks are more likely to recover (and then some) after the ex-date.

Strategy Philosophy

Pure capture strategies treat all dividends equally. This strategy is more selective: it waits for the rare combination of an upcoming dividend AND a value opportunity. The thesis: an undervalued stock with an upcoming dividend gives you two ways to win—the dividend AND price recovery.

Think of it as "dividend capture with a margin of safety."

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 (higher bar)
• Opportunity rank: ≥ 75 (top quartile opportunities only)
• Undervaluation: Yield 30%+ above 5-year average OR 15%+ off 52-week high

Exit Rules

• Recovery + time: Sell after 7+ days since ex-date AND (opportunity rank drops below 60 OR price recovers to within 5% of high)

Portfolio Details

• Rebalance frequency: Daily
• Target positions: 15 holdings
• Position sizing: Equal weight
• Minimum hold: 7 days
• Expected turnover: 200-300% annually

Who Is This For?

Value investors who want to add dividend capture as an entry timing technique. This strategy suits patient investors who prioritize quality over capture frequency.

Risk Considerations

• Smaller candidate universe means fewer opportunities
• "Value traps" may appear undervalued for good reasons
• May miss ex-dates while waiting for undervaluation signal