Combining a Historical Dividend Ratio with RSI and Rising Moving Averages

Summary

This stock screen combines a historical dividend-ratio threshold with two technical conditions: RSI below 65 and upward divergence among the day’s moving averages. Its stated rules use the 2019 dividend ratio, requiring it to exceed 25%. The article presents the combination as a way to pair a dividend-related fundamental measure with indicators of price direction and momentum.

The document offers indicator formulas and sample Python code, but no backtest results or evidence that the screen improves returns. It cautions that relying on one year of dividend data can miss financial changes, and that maintaining a high payout may constrain a company’s growth. The code checks price against a one-day moving average and sorts candidates by daily price change and dividend ratio, so it does not clearly match the full stated rule set. The article recommends adding broader measures of company quality and risk controls.

Key ideas

• The screen requires a 2019 dividend ratio above 25%, RSI below 65, and upward-moving averages.
• It combines a historical dividend measure with technical indicators.
• The article warns that a single year of dividend data may miss important business changes.
• The sample code does not clearly implement all the stated conditions, and no backtest evidence is given.

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