Screening for High Amplitude, Lower Lows, and a High Dividend Ratio

Summary

This stock-selection note proposes combining three filters: daily price amplitude above a threshold, a current low below the previous day’s low, and a dividend ratio above a stated level for 2019. The first two conditions identify volatile stocks making a lower low, while the dividend filter adds a historical payout measure. The provided example sorts qualifying stocks by price, but the document reports no portfolio construction rules, holding period, backtest, or realized returns.

The author notes that a single year’s dividend ratio does not capture a company’s future prospects or competitive position. A low payout may coexist with attractive investment opportunities, while a high payout alone does not establish value. The note suggests combining technical and fundamental analysis and considering longer-term company and industry factors. Its proposed screen is therefore a basic candidate filter rather than a complete strategy, and it does not specify how to handle changing data, transaction costs, or risk.

Key ideas

• The screen combines daily amplitude, a lower low than the prior day, and a high 2019 dividend ratio.
• The lower-low condition identifies recent price weakness rather than confirming a recovery trend.
• A historical payout ratio is only one measure of shareholder returns and company quality.
• The note provides no performance evidence or full trading rules, and recommends broader fundamental and technical review.

Tags

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