A Chinese Equity Screen Combining Dividend Yield and Revenue Growth

Summary

This Chinese stock-screening example ranks companies by capital-flow strength and combines that ranking with a historical dividend payout filter and revenue growth between 2018 and 2021. The initial criteria use a payout ratio above 25% and revenue in 2021 more than 1.1 times its 2018 level. The author then suggests loosening the payout threshold to above 20% and adding valuation filters, with price-to-earnings below 30 and price-to-book above 1. A Python example illustrates filtering a data table and retaining companies in the top capital-strength quintile.

The post explains the intended rationale: substantial shareholder distributions may signal confidence, revenue growth may indicate expansion, and capital-flow strength may reflect market attention. It provides no company list, historical backtest, or performance evidence. It also warns that strict conditions may leave few candidates and that financial data may be inaccurate. The screen uses dated accounting observations and does not discuss survivorship, sector comparisons, or whether these filters predict future returns.

Key ideas

• The screen ranks firms by capital-flow strength and applies dividend and revenue-growth conditions.
• The proposed refined version lowers the payout threshold and adds price-to-earnings and price-to-book filters.
• The post interprets dividends and revenue growth as possible indicators of confidence and business expansion.
• The author notes that strict filters can produce few candidates and that reported financial data may contain errors.
• No backtest or evidence of returns is supplied.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.