Combining Dividend Yield, RSI, and Buying-Activity Filters

Summary

This proposed stock screen combines three conditions: a 2019 dividend ratio above 25%, RSI below 65, and a measure of increased buying activity above 5%. The post presents it as a blend of a historical fundamental criterion and technical or trading-activity filters. It warns that relying on one dividend measure can overlook other financial risks, and suggests checking debt, return on equity, profit growth, valuation, and industry concentration alongside other market indicators.

The implementation details are inconsistent. The formula uses a close-to-open price ratio and a dividend field, while the Python example treats a change in volume as the buying-activity measure; neither clearly establishes the stated increase in holdings. The dividend calculation and date alignment are also not explained. No backtest, performance results, or evidence for the chosen thresholds are provided, so the screen should be treated as a rough selection concept rather than a validated strategy.

Key ideas

• The screen combines a 2019 dividend ratio above 25%, RSI below 65, and a buying-activity threshold above 5%.
• The post recommends supplementing the dividend measure with debt, profitability, valuation, and concentration checks.
• The formula and Python example use different proxies for buying activity, leaving the rule unclear.
• No backtest or performance evidence supports the selected thresholds.

Tags

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