5 Reasons What You Know About Dividend Forecasting May Be Out Of Date

September 6, 2021

We all get out of date as the world changes faster and faster.

The availability and affordability of dividend forecast data has improved hugely over the past five years - likely more than you think.

Here are 5 ways in which your thinking about dividend forecasting may be out of date:

  • Same old same old”. Dividend forecasting was traditionally about fundamental analysis and sellside consensus estimates. As tech and data storage capabilities have improved over the past decade (and exponentially), a new hybrid approach combining the best of machine and human intelligence has evolved.

  • “Only the big guys have worthwhile data”. Access to sellside analyst estimates is no longer necessary. Likewise you no longer need to engage with one of the world's massive financial data corporates. Traditionally a game with only two players, specialist providers focused only on dividend forecast data have emerged. These newer ‘alternative’ data providers are able to on-board and contract significantly more speedily than before.

  • “Coverage is limited”. Applying a data+algorithm approach has seen average coverage rise from ~9000 names to over 30k securities during the past 5 years. This has greatly opened up the market and availability of forecast data. Securities formerly too minor or illiquid to be worthy of review can be estimated systematically with analyst review only necessary where there is demand.

  • “Accuracy is hit or miss”. Accuracy is the key consideration for dividend forecast data buyers. Applying a hybrid tech/human approach delivers accuracy at scale - both for amounts and ex-dates.

  • “You get what you pay for”. Large budgets are no longer required for the best dividend data. In fact the efficiencies delivered by the newer hybrid approach have brought about lower pricing for improved data - these days you can literally have the best for less.

Does any of this come as a surprise?

Contact one of our team to learn how we can help you avoid losing money - or better - help you make money...