Screening Stocks by Turnover, Price Flow, and Dividend Ratio

Summary

This proposed stock screen combines a daily turnover rate between 3% and 12%, a positive product of daily price change and large-order net flow, and a 2019 dividend ratio above 25%. The article frames turnover as a measure of market activity and the price-flow condition as a way to capture directional alignment between price movement and large-order flows. It provides example formula and Python implementations for selecting stocks that meet the stated conditions.

The source cautions that these filters do not provide a full fundamental assessment and that a high historical dividend ratio does not establish lasting profitability. It suggests considering valuation, returns on equity, earnings growth, and technical indicators. The formula example is inconsistent with the prose: it specifies a price-change interval instead of the turnover range and uses a differently expressed flow calculation. No backtest, sample, or performance results are reported, so the screen's effectiveness remains unsubstantiated.

Key ideas

• The stated screen requires turnover between 3% and 12% and a positive price-change-times-net-flow condition.
• It also filters for a 2019 dividend ratio above 25%.
• The article warns that historical dividends and activity measures cannot replace broader fundamental analysis.
• The formula example does not match the turnover condition stated in the prose.
• No performance testing is reported.

Tags

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