Dividend Trading Strategy with MA200 Filter

Category: Trading Strategies | Quantina Intelligence Ltd.

✨ What is Dividend Trading?

Dividend trading means investing in shares of companies that regularly pay out part of their profits to shareholders as dividends. It’s a popular way to:

• Generate consistent income (typically 1–5% annually)
• Hold long-term positions in reliable companies
• Benefit from both price growth and dividend payments
• Reinvest dividends to build compounding returns

Why Add a 200-Day Moving Average (MA200)?

To reduce risk and avoid falling stocks, we add a technical filter using the 200-day Moving Average (MA200). This ensures we only invest when the stock is in a long-term uptrend.

• Buy only when price is above a rising MA200
• Avoid or exit when price drops below MA200

£1,000 Dividend Trading Example

✅ Strategy Summary

• Income + Growth: Dividends plus capital appreciation
• 200 MA Filter: Keeps you on the right side of the trend
• Reinvestment: Boosts returns through compounding

️ Python Code Snippet (Backtest Template)

import pandas as pd

data['MA200'] = data['close'].rolling(200).mean()
data['Dividend_Yield'] = data['annual_dividend'] / data['close']

# Entry condition: dividend yield > 2% and price above MA200
data['Buy_Signal'] = (data['close'] > data['MA200']) & (data['Dividend_Yield'] > 0.02)

# Simulate investment logic here

Final Thoughts

Dividend trading can be a reliable, low-stress way to grow your capital while generating income — especially when enhanced with smart filters like the 200 MA. Use this strategy to build a strong portfolio of dividend stocks, reinvest wisely, and time your entries with technical confidence.

Alternative Option: Quantina Debenture

If you prefer a simpler, fixed-income approach, you can also invest conveniently in the
Quantina Debenture —
offering an 8% fixed income annually.
Interest is paid monthly starting from the second year, and minimum investment starts from just £1,000.
It’s a secure, predictable option to complement your dividend stock holdings.

Need help choosing dividend stocks or want access to exclusive income strategies? Contact Quantina today.