Stock Screening with RSI, Turnover, and Dividend Payout

Summary

This note describes a Chinese-equity screen combining a relative strength index below 65, turnover between 3% and 12%, and a dividend payout ratio above 25% for 2019. The stated aim is to find shares with moderate trading activity, a relatively low RSI reading, and substantial distributions. It also gives example calculations and code, though the implementation appears to use volume relative to its moving average as a turnover proxy and does not clearly align its financial data with the specified year.

The accompanying discussion cautions that a high payout does not guarantee sound operations and that the rule set is subjective and may not fit every investor. It suggests adding earnings and profit measures and applying risk controls. No backtest, performance data, or validation of the thresholds is presented, so the screen is a starting point for research rather than evidence of an effective investment strategy.

Key ideas

• The screen combines RSI below 65 with turnover between 3% and 12%.
• It additionally requires a 2019 dividend payout ratio above 25%.
• The note warns that a high payout ratio alone cannot establish business quality.
• The example code uses a volume-based proxy for turnover, which may not implement the stated filter precisely.

Tags

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