The Day Hagan Logix Tactical Dividend Strategy
is focused on achieving:

  • Capital Appreciation
  • Downside Protection
  • Cash Flow from Dividends


Day Hagan Logix is focused on dividend yield. The strategy utilizes historical absolute and relative yield thresholds by industry as a means to evaluate the potential for capital appreciation. The benefit to the portfolio is attractive industry entry points and a relatively high level of current income.

Day Hagan Logix employs a disciplined strategy of buying dividend-yielding industries when the price of those industries is at or near the bottom of its cycle, based on historical absolute and relative dividend data. Day Hagan Logix employs a disciplined strategy of selling appreciated industries when the price of those industries is towards, but not at, the top of its cycle (approaching the Day Hagan Logix measure of fair value), based on historical absolute and relative dividend data.



  • The proprietary process begins by screening all listed U.S. equities for companies with a 10-year history of uncut dividends, balance sheet sustainability, cash flow generation and fundamental soundness.
  • Typically, approximately 400 names emerge for the next stage of analysis.
  • The screened group of buy candidates are then reclassified into proprietary industry groups based on business lines and revenue sources.
  • Once the industry groups are defined, there must be a minimum of four candidates within an industry for that industry (and the underlying names) to be included in the next stage of analysis.
  • Further, the industry's composite dividend yield must be around or above the high yield buy threshold that we have calculated for each industry as well as passing related relative and median yield screens.
  • Industries passing the evaluation are defined as potentially being at or near the lows of their current price cycles—and the companies within these industries are considered buy candidate finalists.

We believe it is vitally important to only invest in those industries with a sufficient number of attractively rated constituents and showing compelling valuation for the industry overall. Our view is that, historically, this has proven to reveal industries benefiting from a broader-based positive fundamental change in that industry's operating environment. Within the portfolio, assets and position sizes are allocated based on a weight-of-the-evidence approach, while tactical changes in the portfolio are made to reflect prevailing financial conditions within industries and sectors. When suitable buy candidates are not available, cash is utilized as a defensive measure.

"The portfolio is constructed upon a foundation of time-tested factors which have historically pinpointed industries and companies that are attractively priced, shareholder-friendly, fundamentally sound and exhibiting balance sheet strength."

— Jeffrey Palmer, Portfolio Manager

Furthermore, the strategy employs a multifaceted sell discipline, which includes the ongoing evaluation of fundamental and technical measures.

"The Day Hagan Logix Tactical Dividend Strategy doesn't try to replicate a fixed benchmark. Instead, as a function of the rigorous analysis of industries and the companies within them, the portfolio continually moves towards areas evidencing attractive prices and fundamental soundness–whether those areas are considered value or growth. We focus only on the highest probability of success."

— Donald L. Hagan, CFA, Portfolio Manager




  • Historical Absolute and Relative Dividend Yield Valuation
  • Buy/Sell Based on High and Low Yield Thresholds Set by Industry
  • Industry and Equity Diversification


  • Large Cap Names
  • Yields Exceeding S&P 500 and Russell 1000 Value
  • 5-9 industries, 25-45 equities
  • At cost, no more than 20% in one industry, and no more than 5% in one equity


  • Outperformance vs. S&P 500 and Russell 1000 Value
  • Low Beta and Volatility vs. S&P 500 and Russell 1000 Value
  • Tax Efficient; Historically Low Annualized Portfolio Turnover



Multiple Screens:

  • Names with 10 years of uncut dividends
  • Strong balance sheets
  • Various fundamental screens
  • Minimum of 4 names per industry
Day Hagan Logix Evaluation of Broad-based index Icon



All listed U.S. equities


Size of resulting eligible universe stays fairly consistent


Typically, 30 industries and 300-350 equities


Proprietary analysis:

  • Absolute high level (buy) and low level (sell) industry yield thresholds
  • Historical industry vs. universe-relative yield


Typically, 25 to 45 equities representing 5 to 9 industries


The Day Hagan Logix Industry Buy and Sell Discipline Slide



  • Industry Buy/Sell discipline based on proprietary valuation model
  • Dividend yield valuation: Objective measure of value through money paid to shareholders
  • Historical absolute and relative dividend yield ranges
  • Performance through realized capital appreciation and dividend cash flow; historically low beta



  • Individual stock selection
  • Valuation based on earnings and cash flow related metrics
  • Projected earnings per share and capital market forecasts
  • Trade-offs among capital appreciation, yield, and the level of risk being taken