Combining MACD Trend, Earnings Growth, and Dividend Yield in a Stock Screen

Summary

This Chinese equity screen combines a positive MACD reading with year-over-year growth in parent-company net profit above 20% and no more than 100%, plus a dividend ratio above 25% for 2019. The article presents the combination as a way to find companies with both earnings growth and a record of paying dividends, while using MACD as a technical trend filter. It also offers implementation examples, though the accompanying code has gaps and inconsistencies, so it does not establish that the stated conditions are applied correctly.

The article identifies several limitations: it omits valuation and other company characteristics, does not account for differences in industry prospects, and relies on a single year's dividend data. It suggests adding valuation measures, comparing companies within their industries, checking dividend continuity, and using additional technical indicators. No backtest or performance evidence is provided, and the dividend condition is historical rather than a guarantee of future distributions. The screen therefore describes a hypothesis that would require careful data checks and testing.

Key ideas

• The screen requires MACD above zero, bounded year-over-year net-profit growth, and a 2019 dividend ratio above 25%.
• It combines a technical trend condition with earnings growth and a historical dividend measure.
• The article flags industry outlook, valuation, and dividend continuity as missing considerations.
• It recommends adding valuation metrics, industry comparisons, and longer dividend-history checks.
• No backtest results are presented, and the implementation examples contain inconsistencies.

Tags

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