Screening Main Board Stocks by Turnover, Float Value, and Dividend Yield

Summary

The article proposes a Chinese main board stock screen using three conditions: turnover rate between 3% and 12%, circulating market value between 5 billion and 10 billion yuan, and a 2019 dividend-per-share measure divided by closing price that exceeds 25 under the formula shown. It provides equivalent descriptions through a screening formula and a Python data query, illustrating how market activity, company size, and a dividend measure can be combined to select stocks.

The author argues that adding dividend information broadens a screen based only on size and trading activity, but offers no backtest results or evidence that the combination predicts returns. The article flags market and industry risk, fluctuations in market value, and possible dividend reductions. It also notes that the screen omits fundamentals such as earnings, valuation, revenue and profit growth, and return on equity, and suggests combining additional fundamental and technical measures with portfolio and market context. The dividend condition's units and interpretation are not fully clarified, so it should be checked against the source data before use.

Key ideas

• The proposed screen selects main board stocks using turnover, circulating value, and a 2019 dividend-price condition.
• Turnover is constrained to the stated 3% to 12% interval, while circulating value is constrained to the stated range.
• The screening logic is illustrated with both a formula and a data query.
• The article provides no evidence that the filter produces superior returns.
• It cautions that the filter omits important fundamentals and remains exposed to market, industry, and dividend risks.

Tags

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