Small-Cap, High-Dividend, Low-Price Stock Rotation Strategy

Summary

This example selects stocks from the Chinese equity market using dividend yield, share price, and circulating market capitalization. It first keeps the highest-dividend-yield quarter of the market and stocks priced below 10 yuan, then excludes certain boards, special-treatment stocks, suspended stocks, limit-up or limit-down stocks, and listings younger than 270 days. From the remainder, it chooses the 10 smallest by circulating market capitalization.

The portfolio starts with 1 million yuan, buys at the open, and sells at the close on trading days. It reviews holdings every 15 days, retaining names that remain among the top 10 and selling those that drop out. The page labels this as an example and provides no backtest chart, performance figures, transaction-cost assumptions, or evidence of robustness. Its rules are therefore a strategy outline rather than evidence that the approach is profitable; implementation details and market-specific constraints would need independent evaluation.

Key ideas

• The screen combines high dividend yield and a share price below 10 yuan.
• It excludes several listing categories and trading conditions, including suspended and limit-move stocks.
• Eligible stocks are ranked by circulating market capitalization, with the 10 smallest selected.
• The portfolio is reviewed every 15 days and retains only names that remain in the selected group.
• The document supplies no usable backtest results or evidence of strategy performance.

Tags

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