10Lun
Next attempt at an explanation:
The selection of your stocks for the DivGrowth strategy may be subject to recency bias. You prefer to have exactly those stocks in your portfolio that had a maximum DivGrowth in the years before the purchase. In other words: you always catch the DivGrowth stocks at their DivGrowth peak when they best fulfill your criteria.
If I had to guess, I would say you have been following the strategy for exactly 2 years and are holding the stocks you selected 2 years ago according to MaxDivGrowth?
If that's right, you would have to adjust your strategy and run some kind of rotating DivGrowth strategy or develop a DivGrowthGrowth strategy where it's not the DivGrowth of the last years that counts, but the growth of growth. 🤷
The selection of your stocks for the DivGrowth strategy may be subject to recency bias. You prefer to have exactly those stocks in your portfolio that had a maximum DivGrowth in the years before the purchase. In other words: you always catch the DivGrowth stocks at their DivGrowth peak when they best fulfill your criteria.
If I had to guess, I would say you have been following the strategy for exactly 2 years and are holding the stocks you selected 2 years ago according to MaxDivGrowth?
If that's right, you would have to adjust your strategy and run some kind of rotating DivGrowth strategy or develop a DivGrowthGrowth strategy where it's not the DivGrowth of the last years that counts, but the growth of growth. 🤷
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10Lun
@Epi that's a very good explanation. And indeed, you could call my strategy "DivGrowthGrowth", because I do indeed look at the *trend* of the dividend (i.e. second derivative of dividend growth). By analyzing the trend, I catch stocks that are growing their dividends at higher or at least consistently high CAGRs at the time of purchase. I have been following this strategy since the beginning of my stock market career, i.e. for about 5 years. The only thing I have noticed in the last 2 years is that some (not all) of my stocks have now broken this trend.
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