Ranking Positive-Earnings Stocks with High Dividends and Capital Inflows

Summary

This stock screen ranks shares by capital-flow strength, from strongest to weakest, and filters for a positive price-to-earnings ratio and a dividend payout ratio above 25% in 2019. The stated rationale is to combine evidence of investor inflows with profitable companies and a history of returning a relatively large share of earnings to shareholders. The article suggests that additional profitability or growth criteria could refine the screen, and mentions technical indicators as possible timing inputs.

The document gives no holdings, backtest, return series, or definition of how capital-flow strength is calculated; it names northbound flows and margin financing as possible inputs. Its claims that the filters may improve stability or long-term returns are not supported by performance evidence in the text. The dividend condition refers specifically to 2019, so it does not establish that a company’s current payout is sustainable. Capital flows and earnings can also change, and a positive P/E alone does not establish that a stock is fairly valued.

Key ideas

• The screen orders stocks by capital-flow strength and filters for positive P/E and a 2019 payout ratio above 25%.
• Possible capital-flow inputs include northbound investment and margin-financing activity.
• The article proposes adding profitability, growth, or technical filters as possible refinements.
• It reports no backtest results, and the historical dividend filter does not establish future payout sustainability.

Tags

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