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Is anyone interested in a long-term dividend strategy here? It seems that most c2 subscribers are risk-seekers, but are there some investors, who are looking for a buy-and-hold strategy?
I’m thinking of offering a portfolio of solid businesses with the following characteristics:
paying and increasing dividends each year
dividend yield is higher than any ETFs could offer (like Vanguard Dividend Growth Fund etc.)
dividend growth is expected to be much more than inflation (5-8% annually).
low portfolio rotation = low commissions and taxes.
I think your strategy would certainly attract subscribers. However the more reasonable your strategy is the longer it will likely take to get subscribers. Because subscribers with reasonable expectations want to see a long track record. However I think those subscribers will be more consistent when you do get them. I think running a system like that will require lots of patience because high risk strategies will gain subscribers before you. However, those high risk strategies will likely go bust shortly after too. My word of advice with a strategy like yours is to just be very very patient.
I invest the bulk of my money into various dividend-paying securities. I do it on my own and certainly would like to see additions/alternatives to that. [I use C2 only to get my daily adrenalin shot.]
So I am interested but just to play devil’s advocate: I am not sure that C2 is the right platform for this.
++ You would need to prove yourself for years before attracting enough subscribers. Do you have the patience and the money for that (see also next):
++ C2 collects quite a bit of $$ both from trade leaders and subscribers. When we chase 50% / month systems (mostly unsuccessfully we don’t care much about this cut. But dividend collection is by definition is a low percentage play.
++ The latest functionality cut in their autotrade, namely that they send signals only to dedicated accounts makes it very difficult to follow a trade leader in a real life account. By real life I mean my real account that obviously does and will contain my real life investments.
But yeah, PM me as soon as you start it up and I put it onto my watch-list (for a couple of years
I really like your devils advocate points. I don’t think - at least - for US residents and citizens that there is a better copy trade option out there to publish on. However, on the good side I think that we are going to see some improvements for the opportunities on the “low percentage” plays with C2 opening C2Broker. I mean if you look at it as I am going to pay $100 as a trade leader and get free commissions, depending on how much your trade it could actually be cheaper than Interactive Brokers. I haven’t moved all my money to C2Broker, but I have moved some. I may move more too when they enable linked accounts or if they allow me to AutoTrade my own strategy in multiple accounts rather than just one. If they do that then it could actually be a cost benefit for me to publish on C2 and pay the $100 a month even with no subs. Just a few months ago if I wanted to autotrade my own system I had to pay $50 and now that is free. Hopefully the trend continues.
Thank you for your replies. Great points. However I’m a bit concerned whether subscribers will be willing to pay each month for almost zero trades. The turnover of such a portfolio is going to be very low. Also as C2 shows recent trades anyone could just manually copy the trades and sit on that portfolio for free.
Yes the lower the turn over the long itbwould take to “prove” yourself. As far as the concern of people seeing recent trades they will only see the recent trade if you have completely closed the position. In other words they wouldn’t be able to copy without paying. So if you bought 1000 shares and later sold 999 the trade would only ever show for subscribers. It isn’t until you sell that lass 1 share that everyone can see the trade. Plus you can add up to a week delay to when the public can see the closed trade.
we don’t care much about this cut. But dividend collection is by definition is a low percentage play.