Stock Screening with Price Range, Dividend Yield, and Positive P/E

Summary

The document proposes a simple equity screen combining daily price movement with historical dividend yield and valuation. It selects stocks whose high-to-low range is more than one percent of the opening price, whose stated 2019 dividend yield exceeds 25%, and whose price-to-earnings ratio is positive. The accompanying examples describe applying these filters to market data and combining the conditions into one selection rule.

The rationale is that price range captures market fluctuation, a high dividend yield may appeal to income-focused investors, and positive earnings exclude firms with negative P/E values. The document provides no backtest, portfolio construction rules, holding period, or return evidence. It warns that the criteria are simplistic and can miss relevant information such as trading activity, profitability measures, capital flows, and changing market conditions. It suggests broader fundamental and market analysis alongside asset allocation and risk controls. The historical dividend criterion also requires care when applied to later periods.

Key ideas

• The screen requires a daily high-to-low range above one percent of the opening price.
• It selects stocks with a 2019 dividend yield above 25% and a positive P/E ratio.
• The document gives example implementations but no performance results or holding rules.
• The author cautions that the screen omits other company and market factors.
• Broader analysis and portfolio risk controls are proposed as possible improvements.

Tags

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