Updated: Feb 3
Dividend payouts have been increased massively by an average of 57% and this new dividend structure will come into effect on 1st November 2019. Full details of the announcement can be found here
The new dividend structure benefits strong PB scoring players which has seen many players already fly up in price. This was predicted in my recent blog from 3 days ago and the short term strategy remains the same and can be found here.
The average increase in price across the 31 players highlighted just 2 days is 7.7% (Even more than Neymar's 6.4% increase in the last the 2 days) with some increasing massive amounts in such a short space of time:
Arnaud Souquet up 39%
Denis Zakaria up 27%
Gerard Moreno up 18%
Nelson Semedo up 15%
Alassane Plea up 12%
Dividends increasing is great news for us as traders now, in the short term, as our shares are likely to increase in price as the increase in dividends has actually given our shares a lot more potential value.
Even more importantly, it means that by getting on players which are likely to earn dividends in the future we are likely to get even better % dividend yields and even more capital appreciation in the long term.
Over the last few months, I have been successfully highlighting players very early by anticipating upcoming market trends and many of which have consequently increased in price.
It is likely that there will be less of a trend towards certain players which fit select criteria, other than those who have a strong chance of earning dividends / high PB scoring players, in the short term.
This is because this increase in dividends helps drive the market towards trading for dividends even more.
Therefore, in the next few months it is likely many blogs will be focusing even more on PB players rather than players which fit trends. *As Football Index is constantly evolving, the best way to maximise profits is to evolve and adapt too.
However, with that being said - there will certainly still be many market trends to take advantage of which will be focusing on players with a strong chance of earning MB / PB in the near future.
For example, stand out players in the later stages of the Champions League / Europa League may increase in price considerably due to the large MB / PB dividends which can be won.
Youth players with limited access to earning dividends in the short term are going to suffer because of the dividend increase.
However, quality youth players which are very likely to make it playing in a PB league benefit from this rise massively in the long term, especially as 'The Dividend table will be reviewed and benchmarked with a new table published in advance of every new football season.'
By the time some of the cheaper youth players are playing regular football in a PB league and are still relatively young, we could see dividends increase in value even more. Therefore, there is no doubt that many youth players remain very good value as the demand for these players is going to be even greater when the potential dividend yields are going to be so high.
The trade-off is between the profits which can be made in the short-term via trading players currently playing in PB eligible games versus holding youth players for the potential dividends that they will earn from playing in PB eligible games in the future.
Media Buzz Dividends
Media dividends have increased 50% and offer a great opportunity to earn dividends and see some players return massive dividend yields.
It can be harder to predict media dividend winners and often it is too late to get on a player for media dividends because often as soon as a transfer rumours emerges, players will increase rapidly in price and it becomes a case of 'fastest fingers first'.
Therefore, the key is often to spot players which could potentially earn a transfer via having the right characteristics which would bring the demand of other clubs before the transfer rumours emerge. For example, Denis Zakaria *First highlighted at 66p has recently gained the interest of Manchester United and Tottenham Hotspur according to Bild.
As we get closer to the January transfer window, there will be plenty more players highlighted on the site which could earn media dividends due to transfer speculation.