100%. That's the margin of increase that Football Index have generously announced in their dividend structure from 12th September 2020 onwards, in comparison to the dividend table from early last season.
It's a huge incentive for traders who have stuck through these menacing times, and an indication that despite the teething issues, Football Index truly does intend on putting it's foot on the gas to drive the market to new heights.
There's a genuinely excited buzz around the community, and for good reason. As I write this the morning after the night-before, it's started to sink in just how drastic this announcement is. The concept of true value has been (temporarily) thrown out the window as the market tries to pick up its jaw and start discovering where value lies.
Frankly, value lies everywhere.
But before we give you some examples of dividend winners' potential earnings in the future, we'd like to draw attention to the fact that this Dividend Review is not simply a matter of earning more dividend payouts from your holds as it stands. It's an indication of how much money Football Index has in its locker, and how it intends on attracting new traders to the platform.
Before this review was announced, the negativity amongst traders would have indicated it's a platform to throw caution to. As the culture changes to a positive, and frankly lucrative mentality, outsiders will be peering in at what Football Index has to offer. It's already started that upwards momentum, as #footballindex trended on twitter across the UK on Wednesday evening. New traders will be eager to join. And with more money in the market, more capital appreciation is available. You'll not be rewarded solely through more dividends, but through an increasing market capital as more money is introduced to the platform. In short, you'll see rockets in share value over the coming season as more traders join.
So - here's a couple of examples of what value lies out there in FI.
Robert Lewandowski | 2019/20:
- 2 x Bronze TOP FWD
- 4 x Silver TOP FWD
- 2 x Silver STAR
- 3 x Gold TOP FWD
- 2 x Gold Star
Under new dividend table = £1.26
Obviously these matchday dividends were won across a host of different dividend structures across a prolonged season, and as traders we must acknowledge how strange a season it's been with schedules rearranged all over the place. Nonetheless, had those matchdays fallen under the new structure for 2020/21, he'd have paid a whopping £1.26 in dividends per share. He started the season at £1.47 market value. If he produces a similar season this year, he'd return almost 50% of his investment in dividends within the year - will he depreciate to a value below half that he currently lies at?
We're not advocates of buying shares in older players, but this new dividend structure combined with the ability to bid at a price you consider 'true value' will certainly make the battle between dividend winnings and capital depreciation far easier to win.
Marcus Rashford | 2019/20:
- 5 x Media Day 3rd place
- 7 x Media Day 2nd place
- 1 x Media Day 1st place
- 6 x Bronze Matchday Media Buzz
- 3 x Silver Matchday Media Buzz
- 4 x Gold Matchday Media Buzz
- 1 x Silver Matchday TOP FWD
- 1 x Gold Matchday TOP FWD
-1 x Gold Matchday STAR
Under new dividend table = £1.45
It's not just the PB monsters that are going to profit from this dividend review. The increase in media dividends is substantial, most noticeably in the rise to £0.05 for media buzz on any matchday. This means for the likes of a media attraction like Marcus Rashford, those easily forgettable media dividends on matchdays soon add up. When you combine all media dividends, Rashford would have returned £1.09 in media alone this season. That's around 15% of his current market value.
At 22 years old, this investment is more than likely to catch the eye of new traders, whilst an improving United side look as though higher PB averages are on the cards next season.
If Rashford produced the same dividend profile next season, he'd return 20% of his market value every year. Three year hold is 60% of market value, at which point Rashford is 25 and you can sell on for presumably a similar if not greater value than his current price. If he stays healthy, it's incredibly difficult to see Rashford depreciate in value in the coming three years.
Casemiro | 2019/20:
- 2 x Gold Matchday TOP MID
- 1 x Gold Matchday STAR
It's not just the top end of the market or the obvious superstars that will benefit from the review. It's a platform-wide improvement. Those players that are lurking in the depths of the index haven't had masses to shout about, particularly those with no wonderkid hype or standout performances. Casemiro is one such player, at 28 years old, he's not producing world-class stats nor looking anywhere near as attractive in the media compared to many Premier League stars. He's not really spoken about between traders either. He is, however, a regular in the starting XI of Spanish Champions - Real Madrid. His market value is £0.78.
He put up two PB scores above 250 this season at Real Madrid which yielded him TOP MID on both occasions, and STAR player once. Under the old dividend structure, that's £0.24 for the season. Now it's £0.42. That's 54% ROI in one season, without forking a fortune to invest. If you want to dabble with more shares at lower value, the opportunity is still there to yield a good dividend reward.
Investing in 300 shares at market value in the lower end of the market looked incredibly daunting (and daft) prior to this review. Now the opportunity to invest (in this case £234 for 300 shares) and win that back in dividends over the course of two seasons BEFORE even selling the shares back is hard to argue with. It doesn't have to be a consistent dividend winner, or a superstar attraction like Neymar, but a good player in a good squad that's capable of a decent PB score now and again. Just a couple of dividends each season could be enough to return some great cash in your account and pay for the investment for many players in the depths of the squad list.
IPDs have had a lot more attention since the 5x Bonus over the course of the summer. Next season, it's permanently changing to £0.02 per goal for Mid/FWD, £0.04 per goal for Def, £0.02 per assist and £0.02 per clean sheet for GKs. Now we're only counting pennies here, and we're only counting them for 30 days still. But this increase opens up new channels to exploit - reigniting day trading for the new season.
Although rare, if a defender bags a couple of goals over the course of a month, they're dishing out £0.08 in IPDs. For a player like Hakimi, this IPD is only around 3%. It's a nice add on, but you're likely holding for long term capital appreciation and matchday dividends to pay out the real winnings. It's not likely a day trade.
But for a player like Matt Doherty, this returns nearly 10%. For those aware enough to flip between spreads, or anticipate a few good fixtures in the coming weeks, short-term profits are almost certainly available through focussing on IPDs. Philipp Max is around the £1.00 mark - he scored 8 goals and provided 6 assists in 31 games for Augsburg last year.
You'd not be surprised to see a couple of goals and an assist in an easy month, returning £0.10 in IPDs.
That's 10% ROI, before considering any potential additional dividends, capital appreciation or if you'd picked him up at a lower bid value.
And Goalkeepers. Well, this goes against the grain. The goldmine looks locked in the Top 200, but that doesn't mean there's no value to be had in keepers.. In fact, between the 12th and 30th September, the IPD 5x bonus is still active, meaning it's £0.10 per clean sheet.
Take a look at Wolves fixtures in this bonus period; Sheffield United away, Man City at home, West Ham at home. You'd not be massively surprised to see a clean sheet against two of those sides. In this instance, Rui Patricio would be picking up £0.10 per clean sheet. This is obviously speculative, but;
If Wolves manage two clean sheets, Patricio could be picking up £0.20 in IPDs - around 33% of his market value.
That's before considering Top Goalkeeper dividends which will shortly be introduced, or TOTM dividends, or the IPD potential against Fulham a few days afterwards where he'd pick up the standard £0.02 for a clean sheet. Goalkeepers are still widely considered boring trades, but for those willing to take a punt during the bonus period, there's some huge IPD returns relative to their share value. It'll be interesting to see how has the last laugh during this bonus period.
It's a fantastic time to be on Football Index. The buyers market is firmly in place - cheap bids can still be placed, whilst summer bonuses are continuing into the new season. Whether you lump on the top end of the market, or dabble in the squad list, the opportunities to profit have been widened far beyond the current market value indicates. The ceiling of every player has been raised and the FI culture has shifted to one of positivity and excitement!