Defended
Defended is the second tier in Prospyr’s Coverage Ratio System, assigned when a holding’s ratio is 1.10 or higher but below 1.15. At Defended, the DRIP is healthy — dividend income covers reinvestment with a meaningful buffer — but the margin is narrower than Fortress. A Defended holding warrants monitoring: sustained price appreciation or a dividend cut could push it toward At Risk without intervention.
How Prospyr uses it
Defended is a status within the Coverage Ratio System, coming in Phase 2. In Phase 2, Defended holdings will display in yellow-green on the portfolio dashboard — distinct from Fortress (green) and At Risk (yellow). The practical implication: a Defended holding does not require immediate action, but it belongs on your radar. The Phase 2 Price Creep Alert System will notify you when a Defended holding shows a narrowing trajectory before it slips to At Risk — giving you time to act before a reinvestment cycle is missed.
Why this matters for Canadian investors
A Defended status is closer to the edge than the 1.10 ratio might suggest. A 10% share price increase without a corresponding dividend increase moves a Defended holding to At Risk. In Canadian markets, where many dividend stalwarts — pipelines, telecoms, utilities — have appreciated significantly over the past decade while dividend growth has been steady but modest, a meaningful portion of long-held positions may already be at Defended or lower without investors realizing it.