Combining Dividend History and Trading Strength in a Stock Screen

Summary

This note proposes screening equities for a high dividend payout ratio in 2019, a sufficiently long listing history, and strong capital activity. It describes trading strength using measures such as turnover and relative volume, with the goal of finding stocks that attract market attention. The example code sketches a composite strength score involving smoothed turnover, volume, and a relative strength index, although the article does not define a complete operational rule for the listing-age or dividend filters.

The rationale is that sustained listing history and substantial dividends may indicate established operations, while activity measures capture investor interest. No backtest, portfolio construction details, or return evidence is provided. The article cautions that activity indicators can be distorted and that mature dividend payers may face weakening profitability or changed payout policies. It recommends combining multiple activity measures and conducting financial and risk analysis before relying on the screen.

Key ideas

• The proposed stock screen combines dividend payout history, listing longevity, and capital activity.
• Turnover and relative volume are offered as ways to gauge trading attention.
• The example composite indicator also incorporates volume and RSI, but the full selection rule is underspecified.
• The note provides no performance evidence and flags manipulation and changing company conditions as risks.

Tags

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