Combining Dividend Payout, RSI, and Price Range in a Stock Screen

Summary

This note describes a stock screen combining a 2019 dividend payout ratio above 25%, RSI below 65, and daily amplitude above 1%. It presents the dividend condition as a fundamental input and RSI and amplitude as technical measures of price strength and activity. Formula guidance and a Python sketch are included, but the implementation is simplified and does not provide a historical test or explain data treatment for dividends and indicator calculations.

The article’s main limitation is that it relies on a single year of dividend information and technical indicators that can lag or depend on parameter choices. It recommends reviewing several years of dividend history for stability, adding valuation measures such as price-to-earnings or price-to-book ratios, and tuning the technical parameters. These suggestions are not backed by comparative results, so the proposed conditions should be understood as a screening idea rather than evidence of investment value.

Key ideas

• The screen selects stocks with a 2019 dividend payout ratio above 25%, RSI below 65, and amplitude above 1%.
• It combines a historical dividend measure with technical filters for momentum and price movement.
• The article warns that one year of dividend data does not establish a stable or sustainable payout.
• RSI and amplitude can lag and depend on chosen parameters.
• It proposes adding valuation measures and multiple years of dividend history, without testing those changes.

Tags

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