Get started

High

One clear sign that sets good stocks apart from the restDividends are a fundamental source of returns for investors. Looking at an investment in the S&P 500 since 1930, 41% of the performance generated would have come from dividends1. This is almost half of the total returns. Having said that, there are many ways to invest in dividend-paying stocks: from focusing on companies with high past dividend yields, to companies with the capacity to grow their dividend in the future. At WisdomTree, we believe that high-quality, dividend-growing companies can offer investors a great long-term risk-return profile. The historical outperformance of dividend growers Dividends have generated a large portion of the returns for the market at large. Looking at a company level, the dividend policy is also a good indicator of performance. As illustrated in Figure 1, dividend-paying companies have outperformed non-dividend-paying companies by more than 5% annualised since the 1970s. Very interestingly, even inside dividend-paying companies, we can observe a difference between companies depending on the trajectory of their dividends. Companies that cut their dividend tend to post the worst performance. While companies that increase their dividend over time tend to do the best. The defensiveness of high-quality dividend payers Dividend paying companies and dividend growing companies also exhibit a very interesting risk profile. To assess their defensiveness, we look at the performance of different types of equities in different market regimes, as defined by the level of volatility during the month. To do so, in Figure 2, we split all the months since 2002 into five buckets from the less volatile months in the lowest quintile to the most volatile months in the highest quintile. It is clear that high-dividend stocks and, even more so, high-quality dividend growing stocks generate, on average, much outperformance during the most volatile months (the highest quintile). In other words, in volatile months, which also tend to be bad for equities, dividend-growing stocks outperform and defend investors' portfolios. It is worth noting that, as the volatility lowers, the outperformance of high-dividend stocks tends to lower, turning to underperformance. This is not the case for high-quality dividend growing companies that, in fact, continue to outperform, or at least match, the market. Overall, high-quality dividend growers are defensive and tend to outperform in highly uncertain, highly volatile markets, but they are also able to deliver outperformance and capture the upside in less negative markets. Where to find dividend growing companies Dividend growing companies can deliver long-term outperformance while protecting investment on the downside. But how can investors find those dividend growing companies? By definition, investors will know if a company is increasing its dividend only after the fact, once the dividend has been grown. Many investment strategies look back at past dividend payments to assess a company's potential for dividend growth. While this approach is intuitive, it is not very reactive; a company would be dubbed a dividend-growing company only when it has been one for multiple years. It is also risky as it does not consider what could change going forward. However, it is possible to have a more forward-looking view, focusing not on past dividend payers but more on future dividend payers through the formula below. Retention Ratio x ROE = Implied Dividend Growth Suppose a company earns $1 per share and pays a 25-cent dividend, leaving 75 cents in retained earnings. The retention ratio is 75%. Multiplying the retention ratio by the return on equity (ROE) would give you the amount of money left for future dividend payments, that is, the implied dividend growth. In other words, the implied dividend growth for a company is directly linked to the current profitability of the company. By focusing on highly profitable companies, it is possible to improve the potential for future dividend growth. Overall, by focusing on highly profitable, earnings-growing companies, such strategies are geared towards companies with the potential to outperform over the long term, reduce risk and grow their dividend more over the next few years. Sources 1 Source: Ned Davis Research Inc. 1 January 1930 to 31 December 2022. This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.
D
by aneekaguptaWTE
HIGH/USDT Significant long moveAnalysis of Long Move for HIGH/USDT at Daily Chart-Time: The HIGH/USDT pair is currently experiencing a significant long move on the daily chart, indicating a strong bullish market sentiment. Traders may consider taking long positions, anticipating further price appreciation. Technical analysis using moving averages, such as the EMA (Exponential Moving Average), supports the presence of a bull market. The upward slope of the moving averages indicates positive momentum and potential buying opportunities for traders. The RSI (Relative Strength Index) can be used to confirm the bullish trend. An RSI reading above 50 suggests bullish sentiment and reinforces the notion of a long move for HIGH/USDT. Applying Fibonacci levels and Fibonacci retracement to the price action can help identify key support and resistance levels within the long move. Traders can look for price retracements to Fibonacci levels, such as 38.2% or 50%, as potential areas for adding to long positions. Volume analysis and the volume profile are important indicators of the strength of the long move. Increasing volume during upward price movements signifies higher demand and supports the bullish trend in HIGH/USDT. Breakouts above significant resistance levels and the formation of higher highs and higher lows indicate a sustained upward trend. Trendlines can be drawn to connect these higher lows, providing potential entry and exit points for long positions. Support levels act as price floors during pullbacks and corrections, offering opportunities for traders to enter or add to their long positions. Monitoring these support levels is crucial for managing risk and setting appropriate stop loss levels. When trading the HIGH/USDT pair, it is important to consider volatility, which can present both opportunities and risks. Traders should adjust their strategies accordingly and be prepared for potential price fluctuations. Liquidity is also essential, ensuring smooth execution of trades and minimizing slippage. In conclusion, the HIGH/USDT pair is currently in a long move at the daily chart-time, signaling a strong bullish market sentiment. Traders may consider long positions based on technical analysis, including moving averages, RSI, Fibonacci levels, and volume analysis. Monitoring support levels, managing risk, and accounting for volatility and liquidity are important factors for successful trading in this bullish market environment.
Long
by SafeCryptoSignals
How to use HA-Low and HA-High indicatorsHello? Traders, welcome. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a good day. ------------------------------------- (BTCUSD chart) The HA-Low and HA-High indicators are paired indicators. When supported by the HA-Low indicator, it corresponds to the time to buy, and when it rises to the vicinity of the HA-High indicator, it corresponds to the time to sell. This is a basic principle of indicator design. The HA-Low and HA-High indicators are indicators created for trading, so you can trade based on whether you are supported or resisted by these indicators. In addition to the basic design mentioned above, support in each indicator, HA-Low and HA-High, corresponds to the time to buy, and resistance corresponds to the time to sell. The basic design method is less psychologically burdensome, so it is easier than conducting transactions. When you try to buy because it shows support in the HA-High indicator, it is likely to be a point near the recent high, so you actually have a psychological burden. Therefore, for mechanical trading, it is best to choose a method of buying when supported near the HA-Low indicator and selling when it rises near the HA-High indicator as the basic design method. Both HA-Low and HA-High indicators exist on each time frame chart. Therefore, you can proceed with trading by looking at the time frame chart corresponding to the investment period according to your investment style. The length of the horizontal line on the HA-Low and HA-High indicators will tell you if the current trend is up or down. If the horizontal line of the HA-Low indicator is longer than the horizontal line of the HA-High indicator (HA-Low > HA-High), then the trend is likely to be up. In the opposite case (HA-Low < HA-High ), it is likely to be in a downtrend. Therefore, if you look at the 1M chart, you can interpret it as an overall downtrend. On the other hand, if you look at the 1W chart, you can interpret it as an all-out upward trend. Since it is judged to be in an upward trend on the 1W chart, what matters now is whether the HA-High indicator on the 1M chart falls and the length of the horizontal line becomes shorter than the HA-Low indicator. Therefore, from a long-term perspective, the time to buy in earnest is when the HA-High indicator on the 1M chart declines and shows support at the point where it was created. Looking at the relationship between the HA-Low and HA-High indicators on the 1D chart, it can be interpreted that there is a downward trend because the horizontal line of the falling HA-High indicator is longer than the horizontal line of the HA-Low indicator (HA-Low < HA-High). there is. Therefore, in order to turn into an uptrend, the HA-High indicator on the 1D chart must be moved and created. If not, even if it rises above 30215.26, the current HA-High indicator point on the 1D chart, the phenomenon of moving the HA-High indicator by shaking it up and down will eventually appear. This is a necessary move to sustain the uptrend, as it is inevitable. This concludes the method of trading using the HA-Low and HA-High indicators that I have been talking about for several months. Regardless of which indicator is used, the most important thing is how long the movement has been confirmed, so the reliability of the indicator can be obtained. Therefore, no matter which indicator is used to create a trading strategy, a long period of confirmation work must be done to suit the key interpretation method of that indicator. -------------------------------------------------- ------------------------------------------- ** All descriptions are for reference only and do not guarantee profit or loss in investment. ** Even if you know other people's know-how, it takes a considerable period of time to make it your own. ** This is a chart created with my know-how. ---------------------------------
INDEX:BTCUSDEducation
by readCrypto
2