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Fundamentals scan

High-Dividend Stocks in an Uptrend Screener

This scan finds stocks with a dividend yield above 4% whose price is above the 200-day moving average.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: dividend yield above 4% and close above 200 day sma

  1. Div yield % > 4
  2. Close > SMA(200)

Find US stocks where the dividend yield (%) is above 4; and the closing price is above the 200-day simple moving average.

Formula view
dividend_yield_pct > 4
AND close > sma(close, 200)
Example chart: Dividend payers in an uptrendDaily candles of a made-up sample stock with 200-day SMA. The shaded day is the day the scan fired.
  • 200-day SMA
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

High yields attract income investors, but a high yield can also be a warning. If the price has fallen a lot, the yield rises, and a dividend cut may follow. Asking for an uptrend filters out many of those "yield traps".

Dividend yield is the yearly dividend divided by the share price. 4% is well above the average yield of large US stocks.

How traders use it

  • Check the payout ratio and cash flow to judge whether the dividend is safe.
  • Look at the dividend history: steady or rising payments are a good sign.
  • Combine it with the low-ATR scan for calm income stocks.

Watch out for

  • A very high yield (8% or more) often signals the risk of a cut.
  • A falling price can wipe out years of dividends.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

What is a good dividend yield?

Many income investors look for 3% to 6%. Much higher yields can be a sign that the market expects a cut.

What is a dividend yield trap?

A stock whose yield looks high only because its price has fallen, often before the dividend is cut.

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