Chinese Stock Screening with Positive MACD, Popularity, and Dividend Yield

Summary

This proposed A-share screening rule selects stocks before each trading day opens, requiring MACD to be above zero and the 2019 dividend amount relative to current price to exceed 25%. Candidates are ranked by stock popularity, which the article treats as a measure of market attention. It explains MACD through the standard DIF and DEA exponential averages and outlines a corresponding data-screening process.

The article offers a rationale rather than empirical validation: positive MACD is associated with upward short-term momentum, while popularity and past dividends are intended to capture attention and shareholder returns. It reports no backtest results or performance statistics. The authors caution that indicators and historical payouts can miss business quality, industry prospects, changing earnings, and future dividend policy. They suggest adding business and industry assessment, adjusting payout thresholds over time, adapting indicator weights to market conditions, and evaluating volatility and risk.

Key ideas

• The screen requires MACD above zero and a 2019 dividend-to-price ratio greater than 25%.
• Eligible stocks are ranked from highest to lowest by a popularity measure.
• The proposed selection runs before each trading day's open.
• The article provides formulas and implementation examples but no performance evidence.
• It cautions that past dividends and technical filters may overlook changing fundamentals and market conditions.

Tags

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