Screening for Volatile Stocks Above Their Five-Day Average With High Payouts

Summary

This stock screen combines three filters: a daily price range above a stated threshold, the closing price above its five-day moving average, and a dividend payout ratio above 25% for 2019. The article presents the range condition as a way to find stocks suited to short-term trading, the moving average as a basic upward-trend filter, and the historical payout measure as an indication of income and company profitability. It includes sample formulas and data-handling code, but does not report a backtest or measured returns.

The post cautions that a single year's payout can be unusually high and may not represent future earnings. It also notes that the screen omits other financial measures, potentially making it unsuitable for judging long-term quality. The suggested improvements are to consider valuation, sector prospects, growth, payout history, and additional financial indicators. The thresholds and their predictive value are not validated in the document.

Key ideas

• The screen combines a price-range filter, a five-day moving-average condition, and a historical payout threshold.
• The moving-average rule is intended to favor stocks with recent upward price movement.
• A single year's dividend payout may reflect an exceptional event rather than a durable pattern.
• The article supplies example implementations but no performance analysis or validation.
• It recommends considering valuation, industry conditions, growth, and multi-year payout history.

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