FORMULATION OF THE DIVIDEND TRAP SCORE: A STUDY ON IDX NON-CYC FOOD AND BEVERAGE SECTOR FIRMS

Abstract

This study formulates the Technical Dividend Trap Score (T-DTS) as a risk assessment model for dividend-focused investing, particularly within the non-cyclical food and beverage sector of the Indonesia Stock Exchange (IDX). By analyzing key variables including dividend yield and price drop post ex-dividend date, the study quantifies the probability of a dividend trap—where stock price declines outweigh the dividend received. Using a sample of 21 companies, T-DTS scores reveal significant risk patterns, especially in firms with high dividend yields but poor price stability. The results indicate that T-DTS effectively differentiates between sustainable dividend payers and potential traps. This model provides practical value for investors seeking to minimize post-dividend capital losses while navigating dividend-based strategies in volatile sectors.