Stock Screening with Daily Range, Dividend Payout, and MACD

Summary

This proposed equity screen selects stocks with an amplitude above 1, a dividend payout ratio above 25% for 2019, and a positive daily MACD reading. The document associates the range condition with volatility, the payout condition with company stability, and positive MACD with an upward trend. Its formula reference defines MACD as the difference between 12-period and 26-period exponential moving averages, while its sample code adds other filters, including valuation and size constraints.

The write-up offers no backtest, return data, or evidence that these conditions predict future performance. The sample code does not faithfully implement all stated criteria: its dividend-related checks are not clearly tied to the 2019 payout-ratio threshold, and its range check uses a particular daily-price comparison. It flags market, sector, and company risks and suggests adding further technical and fundamental measures, plus diversification and profit protection. The screen is therefore a rough specification rather than a validated strategy.

Key ideas

• The stated screen requires amplitude above 1, a 2019 dividend payout ratio above 25%, and positive daily MACD.
• The document interprets the range as a volatility measure, payout as a stability signal, and MACD as trend information.
• The sample code applies additional valuation and size filters and does not clearly match every stated condition.
• No backtest or performance evidence is supplied, and the proposed signals remain exposed to market, sector, and company risks.

Tags

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