Ranking Stocks by Capital Strength, Moving-Average Proximity, and Dividends
Summary
This post outlines a Chinese stock-selection approach that ranks stocks by a capital-strength measure, favors opening prices near the 10-day moving average, and filters for a 2019 dividend payout ratio above 25%. It suggests using measures such as turnover and volume ratio to represent capital strength, and describes combining the three inputs into a composite score. Its discussion frames the activity and price conditions as indicators of trading interest and relative stability, while the dividend measure represents a historical shareholder distribution.
The post identifies possible weaknesses: capital-strength measures may be distorted, opening prices can reflect market sentiment, and payout ratios depend on company financial policy. It proposes using multiple activity and price measures and considering dividend ratios alongside valuation metrics. The source’s implementation discussion is truncated before a complete method or code is given, and it provides no data, backtest, or evidence that the proposed composite ranking improves returns. The historical dividend screen also does not establish future payout reliability.
Key ideas
- The proposed stock ranking combines capital-strength measures, proximity of the open to the 10-day average, and a historical dividend payout filter.
- Turnover and volume ratio are offered as possible inputs to measure capital strength.
- The post describes a composite ranking but does not provide a complete scoring procedure.
- It warns that trading activity, opening prices, and payout ratios can each give misleading signals.
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.