The Reality Shares DIVCON Indexes are focused on the future, not the past. Based on the belief that dividends are a crucial measure of the underlying value of companies and a strong predictor of their future performance, our DIVCON Index series selects companies with the strongest future prospects based on their predicted dividend growth.
Stock selection is based on our proprietary new DIVCON dividend health rating system, which assesses the likelihood that companies will grow or cut their dividends within a year. Like the U.S. Armed Forces’ iconic DEFCON system, which rates the country’s defense readiness condition, DIVCON uses a five-tier rating system to illustrate companies’ dividend health. DIVCON 5 indicates the highest probability for a dividend increase and DIVCON 1 the highest probability for a cut.