Screening Stocks by Weekly Moving-Average Crossovers and Historical Dividends

Summary

This stock screen combines a price-range condition, a weekly moving-average signal, and a historical dividend measure. Its stated criteria are amplitude above 1, a weekly five-period moving average crossing above the ten-period average, and a 2019 dividend ratio above 25%. The article frames the moving averages as technical filters and the dividend condition as a way to select companies with stronger distributions. It also suggests adding profitability, valuation, growth, and more recent dividend information to make the assessment broader.

The document gives formula and Python examples, but the implementation does not fully match the described strategy: the sample code calculates daily rather than weekly averages, and its moving-average comparison checks relative levels rather than a crossover event. The article cautions that a high payout does not prove strong business performance and that a historical dividend screen can miss current conditions. It provides no backtest results or evidence that the combined screen predicts future returns, so the criteria should be treated as a screening example rather than a validated strategy.

Key ideas

• The proposed screen combines price amplitude, a weekly moving-average signal, and a 2019 dividend threshold.
• The article recommends adding measures of profitability, valuation, and growth for broader company analysis.
• High historical dividends do not establish that a company is financially strong today.
• The sample code uses daily averages and does not directly implement the described weekly crossover.

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