Stock Screening with Price Range, Dividend Yield, and Convertible Bonds

Summary

This screen selects equities using three conditions: daily price range above a stated threshold, a 2019 dividend ratio above 25%, and a nonempty name for an outstanding convertible bond. The article presents the combination as a way to consider price activity, dividends, and bond-related information together. It includes example formulas and Python-style code, but these are illustrative and may not implement the described conditions consistently across data sources.

The article offers no backtest, performance evidence, or precise validation of the claim that the criteria identify resilient or strong-performing stocks. It warns that combining filters can overfit historical data and that requiring an outstanding convertible bond may sharply narrow the eligible universe. It suggests adding valuation or technical factors and testing the method before use. The screen is therefore a hypothesis for stock selection, not a demonstrated strategy; its thresholds, data definitions, and timing would need careful review.

Key ideas

• The screen combines price range, a historical dividend measure, and outstanding convertible-bond information.
• The article provides example implementations but does not establish that they consistently match the stated screening logic.
• A bond-name requirement may substantially reduce the number of eligible stocks.
• The method has no reported backtest and may be vulnerable to overfitting or unstable results.
• Additional factors and out-of-sample validation are suggested before practical use.

Tags

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