Screening for Rising Lows, Large Price Swings, and High Dividend Payouts

Summary

This stock screen combines three conditions: price amplitude above 1, a dividend payout ratio above 25% for 2019, and a rising-bottom pattern. The document describes amplitude as a way to identify shares with larger price swings, the historical payout condition as a dividend-oriented filter, and rising lows as a possible sign of recovery from a prior low. It provides formulas for calculating amplitude and comparing recent lows with 60- and 120-period lows. The included sample code adds extra market-capitalization, price-to-book, and price-to-earnings exclusions, so its implementation does not exactly match the three headline conditions.

The article cautions that sentiment and misread technical signals can undermine the screen, and that it may omit important business and competitive information. It proposes adding indicators such as MACD or RSI and combining technical and fundamental factors. The document offers no backtest, comparative evidence, or realized performance, and the payout criterion is tied to a past year rather than current distributions.

Key ideas

• The screen combines price amplitude, a 2019 dividend payout threshold, and rising lows.
• The rising-bottom condition compares the current low with rolling lows over 60 and 120 periods.
• The sample code adds valuation and market-size filters beyond the headline rules.
• The article recommends broader fundamental and technical inputs but supplies no performance test.

Tags

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