Screening Stocks by Volatility, Dividends, Size, and Profitability

Summary

This Chinese-language post describes an equity screen combining price amplitude above 1, a 2019 dividend ratio above 25%, market capitalization below 10 billion yuan, and positive profits. It frames the criteria as a way to find smaller companies with substantial price movement, a history of distributions, and earnings. It also gives example formulas and Python-style selection logic, though the code appears to use price as a proxy for the stated market-cap limit, so implementation details may not faithfully represent the screen.

The post offers no backtest, performance figures, or evidence that the conditions predict returns. It warns that the screen omits policy, industry, and financial distress risks, may yield few candidates and higher trading costs, and that high payouts could constrain research investment. It suggests adding measures of innovation, operating stability, cash flow, and other volatility criteria. The screen is therefore a proposed filter, not a validated strategy.

Key ideas

• The proposed screen combines amplitude above 1, a 2019 dividend ratio above 25%, market capitalization below 10 billion yuan, and positive earnings.
• The rationale is to combine volatility, shareholder distributions, smaller-company exposure, and profitability.
• The post provides sample selection logic, but its code may not correctly implement the stated market-cap condition.
• No return testing is presented, and the selection rules omit several business and financial risks.
• The author suggests considering innovation, operating stability, cash flow, and additional volatility measures.

Tags

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