Screening Stocks by Weekly MACD, Price Range, and Dividend Payout

Summary

This stock-selection rule combines a minimum daily price range, positive weekly MACD, and a historical dividend condition. It selects stocks whose high-to-low range exceeds 1% of the prior close, whose weekly MACD is above zero with the MACD line above its signal line, and whose 2019 dividend amount exceeds 25% of the prior close. The article also sketches a data workflow using stock, weekly-price, and dividend records.

The author presents the dividend filter as a way to favor firms associated with cash generation, while noting that a past high payout does not guarantee future distributions. The discussion also cautions that the screen omits broader fundamentals and recommends statistical review and historical backtesting. The article provides no screening results or performance evidence. Its Python example uses a weekly moving-average condition that differs from the stated MACD rule, and the dividend data field and ratio description are not fully reconciled, so implementation details require verification before use.

Key ideas

• The stated screen combines a price-range threshold, positive weekly MACD, and a historical dividend-to-price threshold.
• The MACD condition also requires the MACD line to exceed its signal line.
• The article warns that a past dividend payout does not establish future dividend stability.
• It recommends adding broader factors and validating the screen with statistical analysis and backtesting.
• The Python example does not consistently implement the described MACD condition, and data definitions need checking.

Tags

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