Combining Stock Amplitude, Historical Dividends, and a Low K Indicator

Summary

This post proposes an A-share screen using three criteria: amplitude above 1, a dividend payout ratio above 25% in 2019, and a K value below 20. It interprets the first condition as selecting volatile stocks, the dated dividend condition as identifying companies with comparatively generous distributions, and the low K reading as a possible oversold signal. The post also provides formulas for amplitude and K, plus sample Python selection code.

The article cautions that sentiment shifts and technical misreadings can undermine the screen, and that it may omit important company information. It suggests combining further technical and fundamental measures or using a composite-factor approach. The example code adds market-capitalization, price-to-book, and price-to-earnings filters, but does not demonstrate that it implements all three headline criteria consistently. No backtest or performance evidence is presented, so the strategy remains a proposed screening rule rather than a validated method.

Key ideas

• The proposed screen combines amplitude above 1, a 2019 dividend payout ratio above 25%, and K below 20.
• The author associates the amplitude condition with volatility and the low K reading with a potentially oversold stock.
• The dated dividend measure and technical conditions do not account for all company fundamentals or changing market conditions.
• The post provides formulas and sample code but no evidence of returns, and the code does not clearly reproduce every stated filter.

Tags

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