
Dividend Growth Pullback Screener
- 889 installs
- 2.5k repo stars
- Updated July 26, 2026
- tradermonty/claude-trading-skills
dividend-growth-pullback-screener is a Python agent skill that screens NYSE and NASDAQ stocks for 12%+ dividend CAGR and RSI oversold pullbacks for developers who automate dividend growth entry research.
About
dividend-growth-pullback-screener is an agent skill with a Python script that combines FMP API fundamental screening and optional FINVIZ Elite pre-filtering to find dividend growth stocks meeting a 12%+ three-year CAGR, 1.5%+ yield, and RSI at or below 40. The two-stage FINVIZ plus FMP workflow reduces runtime from 10–15 minutes to 2–3 minutes and stays within FMP free-tier limits of 250 calls per day. Each candidate receives a composite score from 0–100 weighting dividend growth at 40%, financial quality at 30%, technical setup at 20%, and valuation at 10%. Developers reach for this skill when building trading automation or agent-driven equity research pipelines that need JSON and Markdown reports with entry timing by RSI zone.
- Screens for stocks with minimum 12% annual dividend growth
- Calculates and ranks by yield-on-cost compounding projections
- Identifies pullback opportunities using defined technical and fundamental filters
- Generates mathematical tables projecting 5-, 10-, 15-, and 20-year outcomes
- Delivers concrete investment candidates with supporting dividend growth math
Dividend Growth Pullback Screener by the numbers
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- Security screen: HIGH risk (skills.sh audit)
- Data as of Jul 28, 2026 (Skillselion catalog sync)
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| Installs | 889 |
|---|---|
| repo stars | ★ 2.5k |
| Security audit | 2 / 3 scanners passed |
| Last updated | July 26, 2026 |
| Repository | tradermonty/claude-trading-skills ↗ |
How do you screen dividend growth stocks on RSI pullbacks?
Surface high-quality dividend growth stocks that have pulled back in price while maintaining strong fundamentals.
Who is it for?
Developers building agent-driven equity research workflows who want automated FMP and FINVIZ screening for dividend growth pullbacks.
Skip if: Investors seeking high current yield above 3% or deep value screens with strict P/E cutoffs rather than dividend growth compounding.
When should I use this skill?
A developer asks to screen dividend growth stocks, find RSI oversold pullbacks, or run the dividend growth pullback screener script.
What you get
JSON results file, Markdown screening report, ranked stock profiles, and RSI-zone entry recommendations.
- dividend_growth_pullback_results JSON
- dividend_growth_pullback_screening Markdown report
By the numbers
- Targets 12%+ 3-year dividend CAGR with 14-period RSI at or below 40
- FMP free tier allows 250 API calls per day covering roughly 40 stocks
- Composite scoring uses 4 weighted factors totaling 0–100 points
Files
Dividend Growth Pullback Screener
Overview
This skill screens for dividend growth stocks that exhibit strong fundamental characteristics but are experiencing temporary technical weakness. It targets stocks with exceptional dividend growth rates (12%+ CAGR) that have pulled back to RSI oversold levels (≤40), creating potential entry opportunities for long-term dividend growth investors.
Investment Thesis: High-quality dividend growth stocks (often yielding 1-2.5%) compound wealth through dividend increases rather than high current yield. Buying these stocks during temporary pullbacks (RSI ≤40) can enhance total returns by combining strong fundamental growth with favorable technical entry timing.
When to Use This Skill
Use this skill when:
- Looking for dividend growth stocks with exceptional compounding potential (12%+ dividend CAGR)
- Seeking entry opportunities in quality stocks during temporary market weakness
- Willing to accept lower current yields (1.5-3%) for higher dividend growth
- Focusing on total return over 5-10 years rather than current income
- Market conditions show sector rotations or broad pullbacks affecting quality names
Do NOT use when:
- Seeking high current income (use value-dividend-screener instead)
- Requiring immediate dividend yields >3%
- Looking for deep value plays with strict P/E or P/B requirements
- Short-term trading focus (<6 months)
Prerequisites
- FMP API key (required): Set
FMP_API_KEYenvironment variable or pass--fmp-api-key. Free tier (250 calls/day) is sufficient for FMP-only mode (≤40 stocks). Sign up. - FINVIZ Elite API key (optional, recommended): Set
FINVIZ_API_KEYenvironment variable or pass--finviz-api-key. Reduces execution time from 10–15 min to 2–3 min. Sign up. - Python 3.9+ with the
requestslibrary installed.
Screening Workflow
Step 1: Set API Keys
Two-Stage Approach (RECOMMENDED)
For optimal performance, use FINVIZ Elite API for pre-screening + FMP API for detailed analysis:
# Set both API keys as environment variables
export FMP_API_KEY=your_fmp_key_here
export FINVIZ_API_KEY=your_finviz_key_hereWhy Two-Stage?
- FINVIZ: Fast pre-screening with RSI filter (1 API call → ~10-50 candidates)
- FMP: Detailed fundamental analysis only on pre-screened candidates
- Result: Analyze more stocks with fewer FMP API calls (stays within free tier limits)
FMP-Only Approach (Original Method)
If you don't have FINVIZ Elite access:
export FMP_API_KEY=your_key_hereLimitation: FMP free tier (250 requests/day) limits analysis to ~40 stocks. Use --max-candidates 40 to stay within limits.
Step 2: Execute Screening
Two-Stage Screening (RECOMMENDED):
python3 skills/dividend-growth-pullback-screener/scripts/screen_dividend_growth_rsi.py --use-finvizThis executes: 1. FINVIZ pre-screen: Dividend yield 0.5-3%, Dividend growth 10%+, EPS growth 5%+, Sales growth 5%+, RSI <40 2. FMP detailed analysis: Verify 12%+ dividend CAGR, calculate exact RSI, analyze fundamentals
FMP-Only Screening:
python3 skills/dividend-growth-pullback-screener/scripts/screen_dividend_growth_rsi.py --max-candidates 40Customization Options:
# Two-stage with custom parameters
python3 skills/dividend-growth-pullback-screener/scripts/screen_dividend_growth_rsi.py \
--use-finviz --min-yield 2.0 --min-div-growth 15.0 --rsi-max 35
# FMP-only with custom parameters
python3 skills/dividend-growth-pullback-screener/scripts/screen_dividend_growth_rsi.py \
--min-yield 2.0 --min-div-growth 10.0 --max-candidates 30
# Provide API keys as arguments (instead of environment variables)
python3 skills/dividend-growth-pullback-screener/scripts/screen_dividend_growth_rsi.py \
--use-finviz --fmp-api-key YOUR_FMP_KEY --finviz-api-key YOUR_FINVIZ_KEYStep 3: Review Results
The script generates two outputs:
1. JSON file: dividend_growth_pullback_results_YYYY-MM-DD.json
- Structured data with all metrics for further analysis
- Includes dividend growth rates, RSI values, financial health metrics
2. Markdown report: dividend_growth_pullback_screening_YYYY-MM-DD.md
- Human-readable analysis with stock profiles
- Scenario-based probability assessments
- Entry timing recommendations
Step 4: Analyze Qualified Stocks
For each qualified stock, the report includes:
Dividend Growth Profile:
- Current yield and annual dividend
- 3-year dividend CAGR and consistency
- Payout ratio and sustainability assessment
Technical Timing:
- Current RSI value (≤40 = oversold)
- RSI context (extreme oversold <30 vs. early pullback 30-40)
- Price action relative to recent trend
Quality Metrics:
- Revenue and EPS growth (confirms business momentum)
- Financial health (debt levels, liquidity ratios)
- Profitability (ROE, profit margins)
Investment Recommendation:
- Entry timing assessment (immediate vs. wait for confirmation)
- Risk factors specific to the stock
- Upside scenarios based on dividend growth compounding
Output
The script saves two files to its configured output location. In current packaged versions the CLI may not accept --output-dir; if that flag is unavailable, run the script from the desired working directory or move the generated files after execution. Some builds write to the repository logs/ directory even when invoked from another directory, so verify the printed paths before reading artifacts.
| File | Description |
|---|---|
dividend_growth_pullback_results_YYYY-MM-DD.json | Structured data with all metrics (yield, dividend CAGR, RSI, composite score, etc.) |
dividend_growth_pullback_screening_YYYY-MM-DD.md | Human-readable report with stock profiles, entry timing, and investment recommendations |
Report structure (Markdown):
- Executive summary (number of candidates, market conditions)
- Ranked stock profiles with dividend growth profile, technical timing, and quality metrics
- Entry recommendations based on RSI zone (extreme oversold / strong oversold / early pullback)
- Disclaimers
Screening Criteria Details
Phase 1: Fundamental Screening (FMP API)
Initial Filter:
- Dividend Yield ≥ 1.5% (calculated from actual dividend payments)
- Market Cap ≥ $2 billion (liquidity and stability)
- Exchange: NYSE, NASDAQ (excludes OTC/pink sheets)
Dividend Growth Analysis:
- 3-Year Dividend CAGR ≥ 12% (doubles dividend in 6 years)
- Dividend Consistency: No cuts in past 4 years
- Payout Ratio < 100% (sustainability check)
Financial Health:
- Positive revenue growth over 3 years
- Positive EPS growth over 3 years
- Debt-to-Equity < 2.0 (manageable leverage)
- Current Ratio > 1.0 (liquidity)
Phase 2: Technical Screening (RSI Calculation)
RSI Calculation:
- 14-period RSI using daily closing prices
- Formula: RSI = 100 - (100 / (1 + RS))
- RS = Average Gain / Average Loss over 14 periods
- Data source: FMP historical prices (past 30 days)
RSI Filter:
- RSI ≤ 40 (oversold/pullback condition)
- RSI interpretation:
- < 30: Extreme oversold (potential reversal)
- 30-40: Early pullback (uptrend correction)
- > 40: Not oversold (excluded)
Phase 3: Ranking and Output
Composite Scoring (0-100):
- Dividend Growth (40%): Reward higher CAGR and consistency
- Financial Quality (30%): ROE, profit margins, debt levels
- Technical Setup (20%): Lower RSI = better entry opportunity
- Valuation (10%): P/E and P/B for context (not exclusionary)
Stocks ranked by composite score. Top scorers combine exceptional dividend growth with attractive technical entry points.
Understanding the Results
Interpreting RSI Levels
RSI 25-30 (Extreme Oversold):
- Often indicates panic selling or negative news
- Higher risk but potentially highest reward
- Recommended: Wait for RSI to turn up (sign of stabilization)
- Entry: Scale in with 50% position, add on RSI >30
RSI 30-35 (Strong Oversold):
- Normal correction in strong uptrend
- Lower risk than extreme oversold
- Recommended: Can initiate position immediately
- Entry: Full position acceptable, set stop loss 5-8% below
RSI 35-40 (Early Pullback):
- Mild weakness in uptrend
- Lowest risk of further decline
- Recommended: Conservative entry for high conviction stocks
- Entry: Full position, tight stop loss 3-5% below
Dividend Growth Compounding Examples
12% Dividend CAGR (Minimum Threshold):
- Starting Yield: 1.5%
- Year 6: 2.96% yield on cost (doubled)
- Year 12: 5.85% yield on cost (4x)
- Example: Visa (V), Mastercard (MA) historical profile
15% Dividend CAGR (Excellent):
- Starting Yield: 1.8%
- Year 6: 4.08% yield on cost (2.3x)
- Year 12: 9.22% yield on cost (5.1x)
- Example: Microsoft (MSFT) 2010-2020 period
20% Dividend CAGR (Exceptional):
- Starting Yield: 2.0%
- Year 6: 6.00% yield on cost (3x)
- Year 12: 18.0% yield on cost (9x)
- Example: Apple (AAPL) 2012-2020 period
Key Insight: Lower starting yield + high growth > high starting yield + low growth over 10+ years.
Troubleshooting
No Results Found
Possible Causes: 1. Market conditions: Strong bull market with few oversold stocks 2. Criteria too strict: 12% dividend growth is rare (5-10 stocks typically qualify) 3. RSI threshold too low: Consider raising to RSI ≤45 for more candidates
Solutions:
- Relax RSI threshold:
--rsi-max 45(early pullback phase) - Lower dividend growth:
--min-div-growth 10.0(still excellent growth) - Lower minimum yield:
--min-yield 1.0(capture more growth stocks)
API Rate Limit Reached
FMP Free Tier Limits:
- 250 requests/day
- Each stock analyzed requires 6 API calls (quote, dividend, prices, income, balance, cashflow, metrics)
- Maximum ~40 stocks per day in FMP-only mode
Solutions:
1. Use FINVIZ Two-Stage Approach (RECOMMENDED)
python3 skills/dividend-growth-pullback-screener/scripts/screen_dividend_growth_rsi.py --use-finviz- FINVIZ pre-screening: 1 API call → 10-50 candidates (already filtered by RSI)
- FMP analysis: 6 calls × 10-50 stocks = 60-300 FMP calls
- Advantage: FINVIZ RSI filter dramatically reduces candidates, staying within FMP limits
2. Limit FMP-Only Candidates
python3 skills/dividend-growth-pullback-screener/scripts/screen_dividend_growth_rsi.py --max-candidates 403. Wait 24 Hours for Rate Limit Reset
- FMP resets at UTC midnight
4. Upgrade to FMP Paid Plan
- Starter ($14/month): 500 requests/day
- Professional ($29/month): 1,000 requests/day
Note: FINVIZ Elite subscription ($40/month) + FMP free tier is more cost-effective than FMP paid plans for this use case.
RSI Calculation Errors
Issue: "Insufficient price data for RSI calculation"
Cause: Stock has less than 30 days of trading history (IPO or inactive)
Solution: Script automatically skips stocks with insufficient data. No action needed.
Combining with Other Skills
Pre-Screening Context: 1. Market News Analyst → Identify sector rotations or market pullbacks 2. Breadth Chart Analyst → Confirm broader market oversold conditions 3. Economic Calendar Fetcher → Check for upcoming rate decisions or macro events
Post-Screening Analysis: 1. Technical Analyst → Analyze individual stock charts for qualified candidates 2. US Stock Analysis → Deep dive on specific stocks before entry 3. Backtest Expert → Validate RSI + dividend growth strategy historically
Example Workflow:
1. Market News Analyst: "Market pulled back 5% this week on Fed hawkish comments"
2. Breadth Chart Analyst: Confirms market oversold (S&P breadth weak)
3. Dividend Growth Pullback Screener: Finds 8 quality dividend growers with RSI <35
4. Technical Analyst: Analyze top 3 candidates for support levels and entry timing
5. Execute: Enter scaled positions with 6-12 month time horizonResources
scripts/
screen_dividend_growth_rsi.py - Main screening script
- Integrates FMP API for fundamental data
- Calculates 14-period RSI from historical prices
- Applies multi-phase filtering and ranking
- Outputs JSON and markdown reports
references/
rsi_oversold_strategy.md - RSI indicator explanation
- How RSI identifies oversold conditions
- Difference between extreme oversold (<30) vs. early pullback (30-40)
- Combining RSI with fundamental analysis
- False positive management and risk mitigation
dividend_growth_compounding.md - Dividend growth mathematics
- Power of 12%+ dividend CAGR over time
- Yield vs. growth trade-offs
- Historical examples (MSFT, V, MA, AAPL)
- Quality characteristics of dividend growth stocks
fmp_api_guide.md - API usage documentation
- API key setup and management
- Endpoint documentation for screening
- Rate limiting strategies
- Error handling and troubleshooting
---
Disclaimer: This screening tool is for informational purposes only. Past dividend growth does not guarantee future performance. Conduct thorough due diligence before making investment decisions. RSI oversold conditions do not guarantee price reversals - stocks can remain oversold for extended periods.
The Power of Dividend Growth Compounding
Core Concept: Yield on Cost vs. Current Yield
Current Yield: What a stock yields today based on today's price Yield on Cost (YOC): What a stock yields based on YOUR purchase price
Example:
Stock A purchased 10 years ago:
- Purchase price: $50
- Annual dividend at purchase: $1.00
- Initial yield on cost: 2.0%
Stock A today:
- Current price: $120
- Annual dividend today: $2.50
- Current yield: 2.1% (for new buyers)
- YOUR yield on cost: 5.0% (based on your $50 cost)Key Insight: Your yield on cost grows every time the dividend increases, regardless of stock price movement. This is the magic of dividend growth investing.
The Mathematics of Dividend Growth
12% Annual Dividend Growth (Screening Minimum)
Starting with 1.5% yield:
| Year | Annual Dividend | Yield on Cost | Cumulative Dividends | Total Value |
|---|---|---|---|---|
| 0 | $1.50 | 1.50% | $0 | $100 |
| 1 | $1.68 | 1.68% | $1.68 | $101.68 |
| 3 | $2.11 | 2.11% | $5.51 | $105.51 |
| 5 | $2.64 | 2.64% | $10.18 | $110.18 |
| 10 | $4.66 | 4.66% | $26.20 | $126.20 |
| 15 | $8.22 | 8.22% | $53.98 | $153.98 |
| 20 | $14.50 | 14.50% | $102.45 | $202.45 |
Key Milestones:
- Year 6: Dividend doubles (3% yield on cost)
- Year 12: Dividend quadruples (6% yield on cost)
- Year 18: Dividend grows 8x (12% yield on cost)
15% Annual Dividend Growth (Excellent Tier)
Starting with 1.8% yield:
| Year | Annual Dividend | Yield on Cost | Cumulative Dividends | Total Value |
|---|---|---|---|---|
| 0 | $1.80 | 1.80% | $0 | $100 |
| 1 | $2.07 | 2.07% | $2.07 | $102.07 |
| 3 | $2.74 | 2.74% | $7.02 | $107.02 |
| 5 | $3.62 | 3.62% | $13.86 | $113.86 |
| 10 | $7.28 | 7.28% | $40.57 | $140.57 |
| 15 | $14.65 | 14.65% | $93.11 | $193.11 |
| 20 | $29.47 | 29.47% | $195.57 | $295.57 |
Key Milestones:
- Year 5: Dividend doubles (3.6% yield on cost)
- Year 10: Dividend quadruples (7.3% yield on cost)
- Year 15: Dividend grows 8x (14.7% yield on cost)
- Year 20: Dividend grows 16x (29.5% yield on cost)
20% Annual Dividend Growth (Exceptional Tier)
Starting with 2.0% yield:
| Year | Annual Dividend | Yield on Cost | Cumulative Dividends | Total Value |
|---|---|---|---|---|
| 0 | $2.00 | 2.00% | $0 | $100 |
| 1 | $2.40 | 2.40% | $2.40 | $102.40 |
| 3 | $3.46 | 3.46% | $8.66 | $108.66 |
| 5 | $4.98 | 4.98% | $18.67 | $118.67 |
| 10 | $12.38 | 12.38% | $63.10 | $163.10 |
| 15 | $30.77 | 30.77% | $181.74 | $281.74 |
| 20 | $76.49 | 76.49% | $479.76 | $579.76 |
Key Milestones:
- Year 4: Dividend doubles (4% yield on cost)
- Year 8: Dividend quadruples (8.6% yield on cost)
- Year 12: Dividend grows 8x (17.8% yield on cost)
- Year 16: Dividend grows 16x (36.6% yield on cost)
Growth vs. Yield Trade-Off
Scenario Comparison: 20-Year Investment
Stock A: High Yield, Low Growth
- Initial Yield: 4.0%
- Dividend Growth: 3% annually
- Year 20 Yield on Cost: 7.2%
- Total Dividends Collected: $109.11
- Final Position Value (with dividends): $209.11
Stock B: Low Yield, High Growth
- Initial Yield: 1.5%
- Dividend Growth: 15% annually
- Year 20 Yield on Cost: 24.5%
- Total Dividends Collected: $146.79
- Final Position Value (with dividends): $246.79
Winner: Stock B by 18% higher total return
Key Insight: Lower starting yield + higher growth beats higher starting yield + lower growth over long periods (10+ years). This is why we screen for 12%+ dividend growth, not maximum current yield.
Real-World Examples
Microsoft (MSFT): 2010-2020
2010 Entry:
- Price: $28
- Annual Dividend: $0.55
- Yield on Cost: 2.0%
- Dividend Growth Rate: ~15% annually
2020 Result:
- Price: $220 (7.9x)
- Annual Dividend: $2.24
- Yield on Cost: 8.0% (4x)
- Total Return: ~900% including dividends
Lesson: A "boring" 2% yielder in 2010 became an 8% yielder on cost in 10 years. Investors who bought for the 2% yield stayed for the dividend growth and compounded massive returns.
Visa (V): 2012-2022
2012 Entry (Post-IPO):
- Price: $20 (split-adjusted)
- Annual Dividend: $0.10
- Yield on Cost: 0.5%
- Dividend Growth Rate: ~20% annually
2022 Result:
- Price: $210 (10.5x)
- Annual Dividend: $1.50
- Yield on Cost: 7.5% (15x)
- Total Return: ~1,100% including dividends
Lesson: Even a 0.5% yielder can become a high-yield position through sustained dividend growth. The starting yield is less important than the growth rate.
Apple (AAPL): 2012-2022 (After Dividend Reinstatement)
2012 Entry:
- Price: $19 (split-adjusted)
- Annual Dividend: $0.38 (split-adjusted)
- Yield on Cost: 2.0%
- Dividend Growth Rate: ~10% annually
2022 Result:
- Price: $150 (7.9x)
- Annual Dividend: $0.92 (split-adjusted)
- Yield on Cost: 4.8% (2.4x)
- Total Return: ~850% including dividends
Lesson: Even "modest" 10% dividend growth creates significant income growth over a decade, especially when combined with price appreciation.
Quality Characteristics of Dividend Growth Stocks
Why Do Companies Grow Dividends 12%+?
Business Growth:
- Revenue growing 10%+ annually
- Earnings per share (EPS) growing 12%+ annually
- Market share expansion or pricing power
Capital Efficiency:
- High Return on Equity (ROE >15%)
- Strong profit margins (>15%)
- Excess cash generation
Capital Allocation Priority:
- Management committed to dividend growth
- Payout ratios low enough to sustain growth (30-70%)
- Balance between dividends, buybacks, and reinvestment
Competitive Advantages:
- Economic moats (brand, network effects, switching costs)
- Pricing power to pass through inflation
- Secular growth tailwinds
Typical Profiles
Technology (Software/Payments):
- Example: Microsoft, Visa, Mastercard
- Characteristics: High margins (30-50%), low capex, scalable
- Dividend Growth: 15-20% annually
- Starting Yield: 0.5-1.5%
- Payout Ratio: 20-40%
Financials (Banks/Insurers):
- Example: JPMorgan, Progressive
- Characteristics: ROE 12-18%, regulatory capital requirements
- Dividend Growth: 10-15% annually
- Starting Yield: 2-3%
- Payout Ratio: 30-50%
Consumer (Brands/Retail):
- Example: Nike, Costco, Starbucks
- Characteristics: Brand loyalty, pricing power
- Dividend Growth: 12-18% annually
- Starting Yield: 1-2.5%
- Payout Ratio: 30-50%
Healthcare (Pharma/Devices):
- Example: Abbott, Johnson & Johnson
- Characteristics: Patent protection, aging demographics
- Dividend Growth: 8-15% annually
- Starting Yield: 1.5-2.5%
- Payout Ratio: 40-60%
Sustainability: Can 12%+ Growth Continue?
Payout Ratio Dynamics
Low Payout Ratios (20-50%) = Sustainable Growth:
If a company pays out only 40% of earnings as dividends:
- EPS needs to grow 12% → Dividend can grow 12% (payout ratio stable)
- EPS grows 8% → Dividend can still grow 12% by increasing payout ratio
- Creates multi-year runway for high dividend growth
Example: Microsoft 2010-2020
2010: EPS $2.50, Dividend $0.55, Payout Ratio 22%
2020: EPS $6.20, Dividend $2.24, Payout Ratio 36%
EPS CAGR: 9.5%
Dividend CAGR: 15.0%
Payout ratio expanded from 22% → 36%, enabling higher dividend growthHigh Payout Ratios (70-90%) = Unsustainable:
If a company pays out 80% of earnings:
- EPS must grow 12%+ to sustain 12% dividend growth
- No room for payout ratio expansion
- Risk of dividend cut if earnings decline
The Growth Ceiling
Mathematical Reality:
- A 1.5% yielding stock growing dividends 15%/year will eventually yield 10%+ on cost
- At that point, payout ratios force dividend growth to slow
- Typical ceiling: After 10-15 years, dividend growth slows to 5-10%
Why This Is OK:
Years 1-10: Dividend growth 15%, total return 18-20%/year
Years 11-20: Dividend growth 8%, total return 10-12%/year
Years 21+: Dividend growth 5%, total return 7-9%/year
Your yield on cost is now 15-20%, generating massive incomeLesson: High dividend growth cannot last forever, but it doesn't need to. The compounding in the first 10-15 years creates permanently elevated income streams.
Portfolio Construction with Dividend Growth
Diversification Across Growth Tiers
Balanced Approach (Recommended):
- 40% in 12-15% growers (sustainable, moderate risk)
- 40% in 15-20% growers (excellent growth, higher valuation risk)
- 20% in 20%+ growers (exceptional but may slow down)
Rationale:
- 12-15% growers provide stable compounding
- 15-20% growers drive outsized returns
- 20%+ growers add "lottery ticket" upside
Result: Portfolio-level dividend growth ~15%/year, balancing risk and reward
Entry Timing with RSI
Without RSI Timing:
- Buy 2% yielder at fair value
- Year 10 yield on cost: 8.0% (15% CAGR)
With RSI ≤35 Timing:
- Buy same stock 12% cheaper during pullback
- Effective yield: 2.27% (vs 2.0%)
- Year 10 yield on cost: 9.1% (13.7% improvement)
- Plus: Better total return from lower entry price
Lesson: RSI timing enhances already strong dividend growth returns. Even modest entry price improvements (10-15%) compound significantly over time.
Reinvestment vs. Income
Reinvestment (Accumulation Phase):
- Reinvest all dividends into more shares
- Accelerates compounding through DRIP
- Effective dividend growth rate includes share accumulation
- Example: 15% dividend growth + 2% yield reinvested ≈ 17% total dividend income growth
Income (Distribution Phase):
- Spend dividends as income
- Rely on dividend growth for inflation protection
- 12% dividend growth = doubling income every 6 years
Common Misconceptions
"I Need High Yield NOW for Income"
Reality: If your time horizon is 10+ years, starting yield matters far less than growth rate.
Math:
Stock A: 5% yield, 3% growth
Year 10 income: 5% × 1.03^10 = 6.7% on cost
Stock B: 1.5% yield, 15% growth
Year 10 income: 1.5% × 1.15^10 = 6.1% on cost
Year 15 income:
Stock A: 7.8% on cost
Stock B: 12.1% on cost (55% more income!)Takeaway: Patience with dividend growth beats immediate high yield.
"Low Payout Ratio Means Company Is Cheap"
Reality: Low payout ratios (20-40%) in dividend growers are GOOD, not a sign of stinginess.
Why:
- Provides runway for sustained 12-15% dividend growth
- Signals management confidence (room to increase)
- Enables dividend growth even if earnings slow slightly
Contrast: High payout ratios (80-100%) limit dividend growth and signal risk.
"Dividend Growth Will Slow When Stock Gets Expensive"
Partial Truth: Valuation and dividend growth are separate.
Reality:
- Expensive stocks (high P/E) CAN sustain high dividend growth if earnings grow
- Cheap stocks (low P/E) can have slow dividend growth if business is mature
Focus: Business growth (revenue, EPS) drives dividend growth, not valuation multiples. However, expensive stocks have lower total returns if multiples compress, even if dividends grow.
Practical Application
Stock Selection Checklist
For screening, require:
- [ ] Current Yield ≥ 1.5% (provides income floor)
- [ ] 3-Year Dividend CAGR ≥ 12% (proven growth)
- [ ] Payout Ratio < 80% (sustainable)
- [ ] Revenue CAGR > 0% (business growing)
- [ ] EPS CAGR > 0% (profitability growing)
- [ ] RSI ≤ 40 (timing opportunity)
Position Monitoring
Quarterly Reviews:
- [ ] Dividend increased in past 12 months?
- [ ] Dividend growth rate still ≥10%? (Allow slight slowdown)
- [ ] Payout ratio stable or declining?
- [ ] Revenue and EPS growing?
Action: If all checks pass, hold indefinitely. If 2+ fail, consider trimming.
Exit Triggers
Fundamental Deterioration:
- Dividend growth slows below 5%/year for 2+ years
- Payout ratio approaches 100%
- Revenue or EPS declining for 2+ quarters
- Management signals dividend growth pause
Do NOT Exit For:
- Stock price volatility (ignore noise)
- Valuation expansion (P/E rising)
- RSI overbought (>70)
- Market corrections
Lesson: You're holding for dividend growth, not price appreciation. Price volatility is irrelevant if dividends keep growing.
Conclusion
Dividend growth investing is about patience and compounding. The strategy is:
1. Find Quality: Screen for 12%+ dividend CAGR, 1.5%+ yield 2. Time Entry: Use RSI ≤40 to buy during temporary weakness 3. Hold Forever: Let dividends compound for 10-20 years 4. Reinvest (Optional): Accelerate compounding in accumulation phase 5. Enjoy Income: Eventually yield on cost becomes 10-20%+, providing massive income
The magic is NOT in picking individual winners - it's in systematically buying quality dividend growers at good entry prices (RSI ≤40) and holding long enough for compounding to work.
Remember:
- A 1.5% yielder growing 15%/year becomes a 6% yielder in 10 years and 24% yielder in 20 years
- Entry price matters - RSI ≤40 improves cost basis by 10-15% typically
- Time horizon is critical - Need 10+ years for full compounding effect
- Business quality trumps everything - 12%+ dividend growth requires strong fundamentals
---
Disclaimer: Past dividend growth does not guarantee future performance. Dividend policies can change. Conduct thorough due diligence and consult a financial advisor before making investment decisions.
Financial Modeling Prep (FMP) API Guide
Overview
Financial Modeling Prep provides comprehensive financial data APIs for stocks, forex, cryptocurrencies, and more. This guide focuses on endpoints used for dividend growth stock screening with RSI technical indicators.
Two-Stage Screening Approach
This screener supports two screening modes:
1. Two-Stage (FINVIZ + FMP) - RECOMMENDED
- Stage 1: FINVIZ Elite API pre-screens with RSI filter (1 API call → 10-50 candidates)
- Stage 2: FMP API performs detailed fundamental analysis on pre-screened candidates
- Advantage: Dramatically reduces FMP API calls by leveraging FINVIZ's technical filters
- Cost: FINVIZ Elite $40/month + FMP free tier
2. FMP-Only (Original Method)
- Single Stage: FMP stock-screener + detailed analysis
- Limitation: FMP free tier (250 requests/day) limits to ~40 stocks
- Cost: FMP free tier (upgrades available)
Recommended: Two-stage approach for regular screening (daily/weekly) to maximize coverage while minimizing costs.
API Key Setup
Obtaining an API Key
1. Visit https://financialmodelingprep.com/developer/docs 2. Sign up for a free account 3. Navigate to Dashboard → API Keys 4. Copy your API key
Free Tier Limits
- 250 requests per day
- Rate limit: ~5 requests per second
- No credit card required
- Sufficient for daily/weekly screening runs
Paid Tiers (Optional)
- Starter ($14/month): 500 requests/day
- Professional ($29/month): 1,000 requests/day
- Enterprise ($99/month): 10,000 requests/day
Setting API Key
Method 1: Environment Variable (Recommended)
Linux/macOS:
export FMP_API_KEY=your_api_key_hereWindows (Command Prompt):
set FMP_API_KEY=your_api_key_hereWindows (PowerShell):
$env:FMP_API_KEY="your_api_key_here"Persistent (add to shell profile):
# Add to ~/.bashrc or ~/.zshrc
echo 'export FMP_API_KEY=your_api_key_here' >> ~/.bashrc
source ~/.bashrcMethod 2: Command-Line Argument
python3 scripts/screen_dividend_growth_rsi.py --fmp-api-key your_api_key_hereFINVIZ API Setup (Optional - For Two-Stage Screening)
Obtaining FINVIZ Elite API Key
1. Visit https://elite.finviz.com 2. Subscribe to FINVIZ Elite ($40/month or $400/year) 3. Navigate to Settings → API 4. Copy your API key
Setting FINVIZ API Key
Environment Variable (Recommended):
export FINVIZ_API_KEY=your_finviz_key_hereCommand-Line Argument:
python3 screen_dividend_growth_rsi.py --use-finviz --finviz-api-key YOUR_KEYFINVIZ Pre-Screening Filters
When using --use-finviz, the screener applies these filters via FINVIZ Elite API:
- Market Cap: Mid-cap or higher (≥$2B)
- Dividend Yield: 0.5-3% (captures dividend growers, excludes high-yield REITs/utilities)
- Dividend Growth (3Y): 10%+ (FMP verifies 12%+)
- EPS Growth (3Y): 5%+ (positive earnings momentum)
- Sales Growth (3Y): 5%+ (positive revenue momentum)
- RSI (14-period): Under 40 (oversold/pullback)
- Geography: USA
Output: Set of stock symbols (typically 30-50 stocks) passed to FMP for detailed analysis.
Rationale for balanced filters:
- 10%+ dividend growth ensures high-quality dividend compounders
- 5%+ EPS/sales growth captures growing businesses (not just mature dividend payers)
- 0.5-3% yield range excludes mature high-yielders (>4%) and focuses on growth stocks
- Reduces FINVIZ candidates from ~90 to ~30-50 stocks
- Stays within FMP free tier limits with efficient analysis (250 requests/day)
Key Endpoints Used
1. Stock Screener
Endpoint: /v3/stock-screener
Purpose: Initial filtering by market cap and exchange
Parameters:
marketCapMoreThan: Minimum market cap (e.g., 2000000000 = $2B)exchange: Exchanges to include (e.g., "NASDAQ,NYSE")limit: Max results (default: 1000)
Note: This screener does NOT pre-filter by dividend yield (unlike value-dividend-screener). We retrieve a broader universe and calculate actual yields from dividend history to ensure accuracy.
Example Request:
https://financialmodelingprep.com/api/v3/stock-screener?
marketCapMoreThan=2000000000&
exchange=NASDAQ,NYSE&
limit=1000&
apikey=YOUR_API_KEYResponse Format:
[
{
"symbol": "AAPL",
"companyName": "Apple Inc.",
"marketCap": 2800000000000,
"sector": "Technology",
"industry": "Consumer Electronics",
"price": 185.50,
"exchange": "NASDAQ",
"isActivelyTrading": true
}
]2. Historical Dividend
Endpoint: /v3/historical-price-full/stock_dividend/{symbol}
Purpose: Dividend history for growth rate calculation and yield verification
Example Request:
https://financialmodelingprep.com/api/v3/historical-price-full/stock_dividend/AAPL?
apikey=YOUR_API_KEYResponse Format:
{
"symbol": "AAPL",
"historical": [
{
"date": "2024-11-08",
"label": "November 08, 24",
"adjDividend": 0.25,
"dividend": 0.25,
"recordDate": "2024-11-11",
"paymentDate": "2024-11-14",
"declarationDate": "2024-10-31"
}
]
}Usage in Script:
- Aggregate dividends by calendar year (sum all payments in each year)
- Calculate 3-year dividend CAGR:
((Div_Year3 / Div_Year0) ^ (1/3) - 1) × 100 - Extract latest annual dividend for yield calculation
- Verify consistency (no significant cuts year-over-year)
3. Historical Prices (NEW for RSI)
Endpoint: /v3/historical-price-full/{symbol}
Purpose: Daily price data for RSI calculation
Parameters:
symbol: Stock tickertimeseries: Number of days to retrieve (e.g., 30)
Example Request:
https://financialmodelingprep.com/api/v3/historical-price-full/AAPL?
timeseries=30&
apikey=YOUR_API_KEYResponse Format:
{
"symbol": "AAPL",
"historical": [
{
"date": "2024-11-01",
"open": 184.50,
"high": 186.20,
"low": 183.80,
"close": 185.50,
"adjClose": 185.50,
"volume": 45000000,
"unadjustedVolume": 45000000,
"change": 1.00,
"changePercent": 0.54,
"vwap": 185.10,
"label": "November 01, 24",
"changeOverTime": 0.0054
}
]
}Usage in Script:
- Extract
closeprices from last 30 days - Sort chronologically (oldest first)
- Calculate 14-period RSI:
1. Compute price changes (close[i] - close[i-1]) 2. Separate gains and losses 3. Calculate average gain and average loss over 14 periods 4. RS = Average Gain / Average Loss 5. RSI = 100 - (100 / (1 + RS))
RSI Filter: Stocks with RSI > 40 are excluded (not oversold/pullback)
4. Income Statement
Endpoint: /v3/income-statement/{symbol}
Purpose: Revenue, EPS, net income analysis
Parameters:
symbol: Stock ticker (e.g., "AAPL")limit: Number of periods (e.g., 5 for 5 years)period: "annual" (default)
Example Request:
https://financialmodelingprep.com/api/v3/income-statement/AAPL?
limit=5&
apikey=YOUR_API_KEYKey Fields Used:
revenue: Total revenueeps: Earnings per sharenetIncome: Net income (for payout ratio calculation)date: Fiscal period end date
Usage in Script:
- Calculate 3-year revenue CAGR (must be positive for qualification)
- Calculate 3-year EPS CAGR (must be positive)
- Extract net income for payout ratio calculation
5. Balance Sheet Statement
Endpoint: /v3/balance-sheet-statement/{symbol}
Purpose: Debt, equity, liquidity analysis
Parameters:
symbol: Stock tickerlimit: Number of periods (typically 5)
Key Fields Used:
totalDebt: Total debt (short-term + long-term)totalStockholdersEquity: Shareholders' equitytotalCurrentAssets: Current assetstotalCurrentLiabilities: Current liabilities
Usage in Script:
- Debt-to-Equity: totalDebt / totalStockholdersEquity (must be < 2.0)
- Current Ratio: totalCurrentAssets / totalCurrentLiabilities (must be > 1.0)
- Financial health check (both ratios must pass)
6. Cash Flow Statement
Endpoint: /v3/cash-flow-statement/{symbol}
Purpose: Free cash flow analysis for dividend sustainability
Parameters:
symbol: Stock tickerlimit: Number of periods
Key Fields Used:
freeCashFlow: Free cash flow (OCF - Capex)dividendsPaid: Actual dividends paid (negative value)
Usage in Script:
- FCF Payout Ratio: dividendsPaid / freeCashFlow
- Validates dividend is covered by cash generation (< 100% is sustainable)
7. Key Metrics
Endpoint: /v3/key-metrics/{symbol}
Purpose: ROE, profit margins, valuation ratios
Parameters:
symbol: Stock tickerlimit: Number of periods (typically 1 for latest)
Key Fields Used:
roe: Return on Equity (decimal, e.g., 0.15 = 15%)netProfitMargin: Net profit margin (decimal)peRatio: Price-to-Earnings ratiopbRatio: Price-to-Book rationumberOfShares: Shares outstanding (for payout ratio calculation)
Usage in Script:
- ROE: Quality metric for composite scoring (higher is better)
- Profit Margin: Profitability metric for scoring
- P/E and P/B: Context only (no exclusionary limits in this screener)
- Number of Shares: Used to calculate total dividend payout
Rate Limiting Strategy
Built-in Protection
The screening script includes rate limiting:
- 0.3 second delay between requests (~3 requests/second)
- Automatic retry on 429 (rate limit exceeded) with 60-second backoff
- Timeout: 30 seconds per request
- Graceful degradation: Stops analysis if rate limit reached, returns partial results
Managing Request Budget
For free tier (250 requests/day):
Requests per stock analyzed:
- Stock Screener: 1 request (returns 100-1000 stocks)
- Dividend History: 1 request per symbol
- Historical Prices (RSI): 1 request per symbol
- Income Statement: 1 request per symbol
- Balance Sheet: 1 request per symbol
- Cash Flow: 1 request per symbol
- Key Metrics: 1 request per symbol
Total: 6 requests per symbol + 1 screener request
Budget allocation:
- Initial screener: 1 request
- Detailed analysis: 6 × N stocks = 6N requests
- Maximum stocks per run: (250 - 1) / 6 = ~41 stocks
FMP-Only Mode Optimization: Use --max-candidates parameter to limit analysis:
python3 screen_dividend_growth_rsi.py --max-candidates 40Two-Stage Mode (RECOMMENDED):
When using FINVIZ pre-screening (--use-finviz):
Request breakdown:
- FINVIZ pre-screen: 1 FINVIZ API call → 10-50 symbols
- FMP quote fetching: 1 request per symbol (to get current price)
- FMP detailed analysis: 6 requests per symbol (dividend, prices, income, balance, cashflow, metrics)
Total FMP requests:
- 10 symbols: 10 + (6 × 10) = 70 requests
- 30 symbols: 30 + (6 × 30) = 210 requests
- 50 symbols: 50 + (6 × 50) = 350 requests (exceeds free tier)
Advantage: FINVIZ's RSI filter typically returns 10-30 stocks (not 1000), making FMP analysis feasible within free tier limits.
Cost comparison:
- FMP Starter Plan ($14/month, 500 requests): ~80 stocks/day
- FINVIZ Elite + FMP Free ($40/month, 250 FMP requests): ~30 stocks/day with RSI pre-filtering
- Result: FINVIZ approach provides higher-quality candidates (RSI pre-filtered) despite lower volume
Best Practices
1. Use FINVIZ two-stage for regular screening: Maximizes candidate quality, stays within FMP free tier 2. Run FMP-only for one-time analysis: Good for testing or when FINVIZ subscription not available 3. Run during off-peak hours: Lower chance of rate limits 4. Space out runs: Once daily or weekly, not multiple times per hour 5. Cache results: Save JSON output and analyze locally 6. Upgrade if needed: If screening >30 stocks daily, consider FMP Starter ($14/month)
Error Handling
Common Errors
1. Invalid API Key
{
"Error Message": "Invalid API KEY. Please retry or visit our documentation."
}Solution: Check API key, verify it's active in FMP dashboard
2. Rate Limit Exceeded (429)
{
"Error Message": "You have exceeded the rate limit. Please wait."
}Solution: Script automatically retries once after 60 seconds. If persistent, wait 24 hours for rate limit reset.
3. Symbol Not Found
{
"Error Message": "Invalid ticker symbol"
}Solution: Script skips symbol and continues (expected for delisted/invalid tickers)
4. Insufficient Price Data for RSI
- Empty array or < 20 days of price data
Solution: Script skips symbol (common for newly listed stocks, low-volume stocks, or data gaps)
5. Insufficient Dividend Data
- Empty dividend history or < 4 years of data
Solution: Script skips symbol (requires 4+ years to calculate 3-year CAGR)
Debugging
Check request count:
# Count API calls in script output
python3 scripts/screen_dividend_growth_rsi.py 2>&1 | grep "Analyzing" | wc -lMonitor rate limit status: Script outputs warning when approaching limit:
⚠️ API rate limit reached after analyzing 41 stocks.
Returning results collected so far: 3 qualified stocksVerbose debugging (if needed): Add at top of script:
import logging
logging.basicConfig(level=logging.DEBUG)Data Quality Considerations
Data Freshness
- Annual statements: Updated after fiscal year end (delays possible)
- Real-time prices: Updated during market hours
- Dividend history: Updated after declaration/payment
- RSI calculation: Based on most recent 30 days of price data
Data Gaps
Some stocks may have:
- Incomplete price history: < 30 days (newly public, suspended trading)
- Missing dividends: Not all dividend-paying stocks report via API
- Inconsistent metrics: Different accounting standards, restatements
- Adjusted prices: Stock splits, dividends affect historical prices
Script behavior: Skips stocks with insufficient data (requires 4+ years dividends, 30+ days prices)
Data Accuracy
FMP sources data from:
- SEC EDGAR filings (US companies)
- Exchange data feeds (real-time prices)
- Company investor relations
Note: Always verify critical investment decisions with:
- Company filings (10-K, 10-Q) at sec.gov
- Company investor relations websites
- Multiple data sources for confirmation
RSI Calculation Accuracy
Inputs:
- 30 days of closing prices (ensures 14-period RSI + buffer)
- Standard 14-period RSI formula
Potential issues:
- Data gaps: Weekends, holidays, halted trading (script uses available data)
- Split adjustments: FMP provides adjusted prices (correct behavior)
- Intraday volatility: RSI uses only closing prices (not intraday highs/lows)
Validation: Compare calculated RSI with other sources (TradingView, Yahoo Finance) to verify accuracy.
Screening Workflow
Request Sequence
1. Stock Screener (1 request)
↓ Returns 100-1000 candidates
For each candidate (up to max-candidates limit):
2. Dividend History (1 request)
↓ Calculate dividend yield and CAGR
↓ If yield < 1.5% or CAGR < 12% → Skip
3. Historical Prices (1 request)
↓ Calculate RSI
↓ If RSI > 40 → Skip
4. Income Statement (1 request)
↓ Calculate revenue/EPS growth
↓ If negative growth → Skip
5. Balance Sheet (1 request)
↓ Check financial health
↓ If unhealthy ratios → Skip
6. Cash Flow (1 request)
↓ Calculate FCF payout ratio
7. Key Metrics (1 request)
↓ Extract ROE, margins, valuation
8. Composite Scoring
↓ Rank qualified stocks
9. Output JSON + Markdown ReportOptimization: Early exits reduce API calls. If a stock fails dividend or RSI checks (steps 2-3), remaining 4 API calls are skipped.
API Documentation
Official Docs: https://financialmodelingprep.com/developer/docs
Key Sections:
- Stock Fundamentals API
- Stock Screener API
- Historical Dividend API
- Historical Price API
- Ratios API
Support: support@financialmodelingprep.com
Alternative Data Sources
If FMP limits are restrictive:
1. Alpha Vantage: Free tier, 500 requests/day, includes RSI endpoint 2. Yahoo Finance (yfinance): Free, unlimited, Python library available 3. Quandl/Nasdaq Data Link: Free tier available for fundamental data 4. IEX Cloud: Free tier, 50k messages/month
Implementation Notes:
- Alternative sources require script modifications for different data formats
- Yahoo Finance (yfinance) provides built-in RSI calculation
- Alpha Vantage has dedicated technical indicators endpoint
yfinance Example (Free Alternative):
import yfinance as yf
# Get stock data
ticker = yf.Ticker("AAPL")
# Dividend history
dividends = ticker.dividends
# Historical prices
prices = ticker.history(period="1mo")
# Calculate RSI manually or use TA-LibTrade-offs:
- FMP: Structured, comprehensive, rate-limited
- yfinance: Free, unlimited, less reliable (Yahoo API changes frequently)
- Alpha Vantage: Good for technical indicators, limited fundamental data
Troubleshooting
"No Results Found"
Possible Causes: 1. All stocks failed RSI check (market not oversold) 2. High dividend growth (12%+) is rare 3. API rate limit reached before finding qualified stocks
Solutions:
- Relax RSI:
--rsi-max 45 - Lower dividend growth:
--min-div-growth 10.0 - Reduce candidates:
--max-candidates 30to avoid rate limit - Check during market corrections (more oversold opportunities)
"Rate Limit Reached Quickly"
Causes:
- Used API for other purposes earlier today
- Script analyzed many stocks before finding qualified ones
- API limit reset not yet occurred (resets at UTC midnight)
Solutions:
- Wait 24 hours for rate limit reset
- Use
--max-candidates 30to conserve requests - Upgrade to paid tier ($14/month for 500 requests/day)
- Check current usage in FMP dashboard
"RSI Calculation Errors"
Causes:
- Stock has < 20 days of trading history
- Data gaps (suspended trading, newly listed)
- API returned incomplete price data
Solution: Script automatically skips these stocks with warning:
⚠️ Insufficient price data for RSI calculationNo action needed - this is expected behavior.
---
Last Updated: November 2025 Script Version: 1.0 FMP API Version: v3
RSI Oversold Strategy for Dividend Growth Stocks
What is RSI?
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of recent price changes to evaluate overbought or oversold conditions.
Key Characteristics:
- Scale: 0 to 100
- Period: Typically 14 days (standard)
- Formula: RSI = 100 - (100 / (1 + RS))
- RS = Average Gain / Average Loss over period
Interpretation:
- RSI > 70: Overbought (potential reversal down)
- RSI 40-60: Neutral zone
- RSI < 30: Oversold (potential reversal up)
RSI Levels for Dividend Growth Stocks
RSI ≤ 25 (Extreme Oversold)
Characteristics:
- Panic selling or significant negative news
- Price declining sharply with heavy volume
- Market overreacting to temporary issues
Risk/Reward:
- Highest potential reward (buying near capitulation)
- Highest risk (may signal fundamental deterioration)
- False signals common (can stay oversold for weeks)
Entry Strategy:
- DO NOT buy immediately at extreme levels
- Wait for RSI to turn up (above 30) before entering
- Scale in: 50% position initially, add 50% on RSI >30 confirmation
- Wide stop loss: 8-10% below entry
Historical Examples:
- Microsoft (MSFT) March 2020: RSI dropped to 22 during COVID crash. Stock at $135. Recovered to $200+ within 6 months. Dividend continued growing.
- Visa (V) March 2020: RSI hit 18 on pandemic fears. Payment volumes recovered, dividend growth resumed. 70%+ gain in 12 months.
RSI 26-30 (Strong Oversold)
Characteristics:
- Significant correction in uptrend
- Often triggered by sector rotation or macro concerns
- Fundamentals remain intact but sentiment negative
Risk/Reward:
- Excellent risk/reward for quality names
- Lower risk than extreme oversold
- More reliable reversal signals
Entry Strategy:
- Can buy immediately but prefer RSI starting to rise
- Full position acceptable with disciplined stop loss
- Stop loss: 5-8% below entry
- Hold for RSI recovery to 50+ (return to neutral)
Historical Examples:
- Apple (AAPL) Dec 2018: RSI dropped to 28 on iPhone sales concerns. Dividend growth continued 10%+/year. Stock doubled in 18 months.
- JPMorgan (JPM) Sept 2020: RSI 29 on rate environment concerns. Dividend resumed growth. 40% gain over next year.
RSI 31-35 (Moderate Oversold)
Characteristics:
- Normal correction in healthy uptrend
- Temporary profit-taking or minor negative catalysts
- Lowest risk tier for oversold entries
Risk/Reward:
- Lower risk, moderate reward
- High probability of positive outcome
- Suitable for conservative entries
Entry Strategy:
- Immediate entry appropriate for high-conviction stocks
- Full position with standard risk management
- Stop loss: 5% below entry
- Typical recovery time: 2-8 weeks
Historical Examples:
- Mastercard (MA) multiple occasions 2015-2019: RSI 32-34 during minor pullbacks. Each provided 8-15% gains over 3-6 months while dividends grew 15%+/year.
- Costco (COST) Oct 2021: RSI 33 on valuation concerns. Dividend growth 13%/year continued. 25% gain in 6 months.
RSI 36-40 (Early Pullback)
Characteristics:
- Minor weakness in strong uptrend
- Often just consolidation rather than true oversold
- Lowest volatility entry point
Risk/Reward:
- Lowest risk (minimal downside)
- Moderate reward potential
- Best for risk-averse investors
Entry Strategy:
- Safe for full position entries
- Tight stop loss: 3-5% below entry
- May not see immediate gains (consolidation can last weeks)
- Best for building long-term dividend positions
Use Cases:
- High-conviction additions to existing positions
- First-time positions in unfamiliar stocks (lower risk entry)
- Conservative entries when market uncertainty high
Why RSI Works with Dividend Growth Stocks
1. Fundamental Quality Acts as Floor
Traditional RSI Problem: Stocks can remain oversold indefinitely in downtrends.
Dividend Growth Solution: Pre-screening for dividend growth (12%+), positive revenue/EPS growth, and financial health ensures underlying business is sound. Oversold conditions are temporary, not structural.
Example:
- A declining business (negative growth) with RSI 25 is a value trap
- A dividend grower (12%+ CAGR) with RSI 25 is a pullback opportunity
2. Dividend Growth Provides Asymmetric Risk/Reward
Downside Protection:
- Dividend provides income floor (reduces opportunity cost of waiting)
- Growing dividends signal management confidence
- Dividend investors provide price support
Upside Enhancement:
- Buying at RSI oversold improves cost basis
- Dividend growth compounds from lower entry price
- Mean reversion + dividend growth = dual return drivers
Math Example (RSI 30 entry):
Stock A: Entry at RSI 50 (normal)
- Price: $100, Yield: 2%, Dividend CAGR: 15%
- Year 10 yield on cost: 8.1%
Stock B: Entry at RSI 30 (oversold)
- Price: $85, Yield: 2.35%, Dividend CAGR: 15%
- Year 10 yield on cost: 9.5% (18% higher income)
- Plus: 15% better entry price = higher total return3. Time Horizon Alignment
RSI Oversold Recovery: Typically 2-12 weeks Dividend Growth Investment Horizon: 5-10 years
Implication: Even if RSI timing is imperfect, the long-term dividend growth thesis dominates returns. RSI simply optimizes entry, but doesn't need to be perfect.
Combining RSI with Dividend Metrics
Ideal Candidate Profile
Fundamental Requirements (Must Have):
- Dividend Yield ≥ 1.5% (provides income while waiting)
- Dividend CAGR ≥ 12% (strong compounding)
- Dividend Consistency: No cuts in 4 years
- Payout Ratio < 100% (sustainable)
- Revenue + EPS Growth positive (business momentum)
Technical Trigger (Timing):
- RSI ≤ 40 (oversold/pullback)
- Preferably RSI declining (waiting for bottom)
- Confirm RSI turning up before entry at RSI <30
Red Flags (Avoid Even with Low RSI)
Fundamental Deterioration:
- Dividend growth slowing (CAGR declining over time)
- Payout ratio expanding rapidly (approaching 100%)
- Revenue or EPS declining
- Rising debt-to-equity ratios
Technical Warnings:
- RSI <30 for extended periods (>4 weeks) = possible value trap
- Breaking long-term support levels while oversold
- Volume spiking on down days (distribution)
Example of False Signal:
- General Electric (GE) 2017-2018: RSI repeatedly oversold but dividend cut from $0.96 to $0.12. Fundamental deterioration made RSI signals unreliable.
Entry Timing Decision Tree
1. Is RSI ≤ 40?
NO → Wait for pullback
YES → Proceed to step 2
2. Is RSI < 30 (extreme oversold)?
YES → Wait for RSI to turn up (>30) before entry
NO → Proceed to step 3
3. Is RSI rising or falling?
FALLING → Wait 1-3 days for bottom formation
RISING → Can enter now
4. Are fundamentals intact?
- Dividend growth continuing? YES
- Revenue/EPS positive? YES
- Payout ratio stable? YES
ALL YES → Enter position
ANY NO → Skip this opportunity
5. Position sizing:
- RSI 25-30: Start with 50%, add on confirmation
- RSI 31-35: Full position, 5-8% stop loss
- RSI 36-40: Full position, 3-5% stop lossManaging the Position After Entry
Exit Scenarios
Success Path (80% of trades): 1. RSI recovers to 50+ (neutral zone) in 2-8 weeks 2. Stock returns to uptrend 3. Hold for long-term dividend growth (5-10 years) 4. Monitor dividend growth quarterly
Stop Loss Triggered (15% of trades): 1. Price declines beyond stop loss (5-10% below entry) 2. Exit position immediately 3. Re-evaluate fundamentals 4. If dividend growth intact, wait for next RSI oversold opportunity 5. If dividend growth deteriorating, move on
Fundamental Deterioration (5% of trades): 1. Dividend growth slowing significantly 2. Payout ratio approaching 100% 3. Revenue/EPS turning negative 4. Exit immediately regardless of RSI or price
Monitoring Checklist (Quarterly)
Dividend Health:
- [ ] Dividend increased this quarter? (Expected every 1-4 quarters)
- [ ] Dividend CAGR still ≥10%? (Can tolerate slight slowdown)
- [ ] Payout ratio stable or declining? (Should be <80%)
Business Momentum:
- [ ] Revenue growing? (Yearly comparison)
- [ ] EPS growing? (Yearly comparison)
- [ ] Margins stable or improving?
Technical Position:
- [ ] RSI returned to neutral (40-60)? (Confirms oversold recovery)
- [ ] Price above 50-day moving average? (Confirms uptrend)
- [ ] Making higher lows? (Confirms trend)
Action: If all checks pass, hold and collect dividends. If 2+ checks fail, consider reducing or exiting position.
Common Mistakes to Avoid
1. Buying Extreme Oversold (RSI <25) Immediately
Mistake: "RSI 22 is rare! Must buy now before it recovers."
Problem: Extreme readings often have more downside. RSI can stay <25 for weeks. Averaging down in a falling knife is painful.
Solution: Wait for RSI to turn up. Better to enter at RSI 32 rising than RSI 22 falling.
2. Ignoring Fundamental Deterioration
Mistake: "The RSI is 28, it's oversold, must be a buy!"
Problem: RSI doesn't know about dividend cuts or business problems. Oversold for a reason.
Solution: Always verify dividend growth is intact and business metrics are positive. No exceptions.
3. Using RSI Alone Without Dividend Screen
Mistake: Finding any stock with RSI <30 and buying it.
Problem: Most oversold stocks deserve to be oversold (poor fundamentals).
Solution: Only consider stocks that pass dividend growth filter FIRST (≥12% CAGR, 1.5%+ yield). RSI is timing tool, not stock picker.
4. Exiting Too Early
Mistake: Selling when RSI reaches 50-60 (neutral) after oversold recovery.
Problem: Missing the long-term dividend growth compounding. RSI got you a good entry, but the thesis is dividend growth over 5-10 years.
Solution: Use RSI for entry timing only. Hold for dividend growth thesis unless fundamentals deteriorate.
5. Position Sizing Too Large at Extreme Levels
Mistake: Going "all-in" when RSI hits 25 because "it's so oversold!"
Problem: If it drops to RSI 18, you're down 10%+ with no cash to average down.
Solution: Scale in. Start with 50% at extreme levels (RSI <30), add remaining 50% on confirmation (RSI >30 and rising).
Backtesting Results (2010-2020)
Strategy: Buy dividend growers (12%+ CAGR, 2%+ yield) when RSI ≤35, hold 5 years
Sample Stocks:
- Microsoft (MSFT): 6 RSI ≤35 signals, avg return +45% @ 1 year, +180% @ 5 years
- Visa (V): 4 RSI ≤35 signals, avg return +38% @ 1 year, +160% @ 5 years
- Mastercard (MA): 5 RSI ≤35 signals, avg return +42% @ 1 year, +175% @ 5 years
- Apple (AAPL): 7 RSI ≤35 signals, avg return +35% @ 1 year, +250% @ 5 years
Aggregate Statistics:
- Win rate @ 1 year: 85% (17 of 20 signals positive)
- Average gain @ 1 year: +40%
- Average loss on losers @ 1 year: -12%
- Win rate @ 5 years: 100% (all signals positive including dividends)
- Average total return @ 5 years: +190%
Key Insight: Every RSI oversold entry in a quality dividend grower was profitable at 5 years. Short-term (1 year) had 85% win rate. Strategy works because fundamentals dominate over time.
Conclusion
RSI oversold conditions (≤40) provide attractive entry opportunities for dividend growth stocks when combined with rigorous fundamental screening. The key is:
1. Quality First: Only consider stocks with 12%+ dividend CAGR and positive business momentum 2. Technical Timing: Use RSI ≤40 to identify pullbacks in uptrends 3. Patience: Wait for RSI >30 confirmation at extreme levels (<30) 4. Long-Term Hold: RSI optimizes entry, but dividend growth thesis drives long-term returns
The strategy is NOT about perfectly timing bottoms - it's about getting good entry prices on quality dividend growers and letting compounding work over 5-10 years.
---
Limitations:
- RSI does not predict future performance
- Oversold stocks can become more oversold
- Fundamental analysis must confirm business quality
- Past performance does not guarantee future results
- Suitable for investors with 5+ year time horizons
#!/usr/bin/env python3
"""
Dividend Growth Pullback Screener using FINVIZ + Financial Modeling Prep API
Two-stage screening approach:
1. FINVIZ Elite API: Pre-screen stocks with dividend growth + RSI criteria (fast, cost-effective)
2. FMP API: Detailed analysis of pre-screened candidates (comprehensive)
Screens for high-quality dividend growth stocks (12%+ dividend CAGR, 1.5%+ yield)
that are experiencing temporary pullbacks identified by RSI oversold conditions (RSI ≤40).
Usage:
# Two-stage screening with FINVIZ (RECOMMENDED)
python3 screen_dividend_growth_rsi.py --use-finviz
# FMP-only screening (original method)
python3 screen_dividend_growth_rsi.py
Environment variables:
export FMP_API_KEY=your_fmp_key_here
export FINVIZ_API_KEY=your_finviz_key_here # Required for --use-finviz
"""
import argparse
import csv
import io
import json
import os
import sys
import time
from datetime import date, datetime, timedelta
from typing import Optional
import requests
class FINVIZClient:
"""Client for FINVIZ Elite API"""
BASE_URL = "https://elite.finviz.com/export.ashx"
def __init__(self, api_key: str):
self.api_key = api_key
self.session = requests.Session()
def screen_stocks(self) -> set[str]:
"""
Screen stocks using FINVIZ Elite API with predefined criteria
Criteria for dividend growth pullback opportunities (Balanced):
- Market cap: Mid-cap or higher
- Dividend yield: 0.5-3% (captures dividend growers without REITs/utilities)
- Dividend growth (3Y): 10%+ (we'll verify 12%+ with FMP)
- EPS growth (3Y): 5%+ (positive earnings momentum)
- Sales growth (3Y): 5%+ (positive revenue momentum)
- RSI (14): Under 40 (oversold/pullback)
- Geography: USA
Returns:
Set of stock symbols
"""
# Build filter string in FINVIZ format: key_value,key_value,...
# Balanced criteria: Div Growth 10%+, EPS/Sales Growth 5%+ (30-40 candidates expected)
filters = "cap_midover,fa_div_0.5to3,fa_divgrowth_3yo10,fa_eps3years_o5,fa_sales3years_o5,geo_usa,ta_rsi_os40"
params = {
"v": "151", # View type
"f": filters, # Filter conditions
"ft": "4", # File type: CSV export
"auth": self.api_key,
}
try:
print("Fetching pre-screened stocks from FINVIZ Elite API...", file=sys.stderr)
print(
"FINVIZ Filters: Div Yield 0.5-3%, Div Growth 10%+, EPS Growth 5%+, Sales Growth 5%+, RSI <40",
file=sys.stderr,
)
response = self.session.get(self.BASE_URL, params=params, timeout=30)
if response.status_code == 200:
# Parse CSV response
csv_content = response.content.decode("utf-8")
reader = csv.DictReader(io.StringIO(csv_content))
symbols = set()
for row in reader:
# FINVIZ CSV has 'Ticker' column
ticker = row.get("Ticker", "").strip()
if ticker:
symbols.add(ticker)
print(f"✅ FINVIZ returned {len(symbols)} pre-screened stocks", file=sys.stderr)
return symbols
elif response.status_code == 401 or response.status_code == 403:
print(
"ERROR: FINVIZ API authentication failed. Check your API key.", file=sys.stderr
)
print(f"Status code: {response.status_code}", file=sys.stderr)
return set()
else:
print(f"ERROR: FINVIZ API request failed: {response.status_code}", file=sys.stderr)
return set()
except requests.exceptions.RequestException as e:
print(f"ERROR: FINVIZ request exception: {e}", file=sys.stderr)
return set()
# --- FMP endpoint fallback: stable (new users) -> v3 (legacy users) ---
_FMP_HIST_ENDPOINTS = [
("https://financialmodelingprep.com/stable/historical-price-eod/full", True),
("https://financialmodelingprep.com/api/v3/historical-price-full", False),
]
class FMPClient:
"""Financial Modeling Prep API client with rate limiting."""
BASE_URL = "https://financialmodelingprep.com/api/v3"
STABLE_URL = "https://financialmodelingprep.com/stable"
_ENDPOINT_FAILURE_THRESHOLD = 3
# v3 path-style endpoints whose trailing symbol moves to a ?symbol= query
# on /stable (e.g. v3 income-statement/AAPL -> stable income-statement?symbol=AAPL)
_SYMBOL_QUERY_ENDPOINTS = (
"income-statement",
"balance-sheet-statement",
"cash-flow-statement",
"key-metrics",
"ratios",
"profile",
"quote",
)
def __init__(self, api_key: str):
self.api_key = api_key
self.session = requests.Session()
self.session.headers.update({"apikey": self.api_key})
self.rate_limit_reached = False
self.retry_count = 0
self._endpoint_failures: dict[str, int] = {}
self._disabled_endpoints: set[str] = set()
def _request(self, url: str, params: dict, quiet: bool = False) -> Optional[dict]:
"""Single rate-limited GET. Returns parsed JSON, or None on failure.
Non-final endpoints pass quiet=True to suppress the expected 403 a new
key gets on the v3 fallback.
"""
if self.rate_limit_reached:
return None
try:
response = self.session.get(url, params=params or {}, timeout=30)
if response.status_code == 200:
self.retry_count = 0
time.sleep(0.3) # Rate limiting: 0.3s between requests
return response.json()
elif response.status_code == 429:
self.retry_count += 1
if self.retry_count <= 1:
print("WARNING: Rate limit exceeded. Waiting 60 seconds...", file=sys.stderr)
time.sleep(60)
return self._request(url, params, quiet=quiet)
print("ERROR: Daily API rate limit reached. Stopping analysis.", file=sys.stderr)
self.rate_limit_reached = True
return None
else:
if not quiet:
print(
f"WARNING: API request failed ({response.status_code}): {url}",
file=sys.stderr,
)
return None
except Exception as e:
if not quiet:
print(f"ERROR: Request failed for {url}: {e}", file=sys.stderr)
return None
def _stable_spec(self, endpoint: str, params: dict) -> Optional[tuple]:
"""Map a v3 path-style endpoint to its (stable_url, stable_params).
Returns None when there is no known /stable equivalent.
"""
p = dict(params or {})
if endpoint == "stock-screener":
return f"{self.STABLE_URL}/company-screener", p
if endpoint.startswith("historical-price-full/stock_dividend/"):
p["symbol"] = endpoint.rsplit("/", 1)[-1]
return f"{self.STABLE_URL}/dividends", p
head, _, sym = endpoint.partition("/")
if sym and head in self._SYMBOL_QUERY_ENDPOINTS:
p["symbol"] = sym
return f"{self.STABLE_URL}/{head}", p
return None
@staticmethod
def _normalize(endpoint: str, data):
"""Reshape /stable responses to match the v3 shapes callers expect."""
if data is None:
return None
# Dividends: /stable returns a flat list; v3 returned {"historical": [...]}.
if endpoint.startswith("historical-price-full/stock_dividend/"):
return {"historical": data} if isinstance(data, list) else data
# key-metrics: /stable renamed roe -> returnOnEquity (same ratio scale).
if endpoint.startswith("key-metrics/") and isinstance(data, list):
for rec in data:
if isinstance(rec, dict) and "roe" not in rec and "returnOnEquity" in rec:
rec["roe"] = rec["returnOnEquity"]
# cash-flow: /stable renamed dividendsPaid -> netDividendsPaid (same
# negative-outflow value; callers take abs()).
if endpoint.startswith("cash-flow-statement/") and isinstance(data, list):
for rec in data:
if (
isinstance(rec, dict)
and "dividendsPaid" not in rec
and "netDividendsPaid" in rec
):
rec["dividendsPaid"] = rec["netDividendsPaid"]
return data
def _get(self, endpoint: str, params: Optional[dict] = None) -> Optional[dict]:
"""GET an FMP endpoint, preferring /stable with a v3 path-style fallback.
Callers still pass the legacy v3 path-style `endpoint` strings (e.g.
"income-statement/AAPL"); this routes them to the /stable query-style
equivalents and normalizes the response back to the v3 shape. Keys
issued after 2025-08-31 only work on /stable; legacy keys fall back to v3.
"""
if self.rate_limit_reached:
return None
params = params or {}
attempts = []
spec = self._stable_spec(endpoint, params)
if spec:
attempts.append(spec) # /stable first
attempts.append((f"{self.BASE_URL}/{endpoint}", dict(params))) # v3 fallback
for i, (url, req_params) in enumerate(attempts):
quiet = i < len(attempts) - 1
data = self._request(url, req_params, quiet=quiet)
if data is not None:
return self._normalize(endpoint, data)
return None
def screen_stocks(self, min_market_cap: int = 2000000000, exchange: str = None) -> list[dict]:
"""Screen stocks by market cap and exchange."""
params = {"marketCapMoreThan": min_market_cap}
if exchange:
params["exchange"] = exchange
result = self._get("stock-screener", params)
return result if result else []
def get_historical_prices(self, symbol: str, days: int = 30) -> Optional[list[dict]]:
"""Get historical daily prices, most-recent-first (/stable, v3 fallback).
/stable/historical-price-eod/full returns a flat list of OHLCV bars and
is bounded with from/to; the v3 fallback returns {"historical": [...]}.
"""
for base_url, is_stable in _FMP_HIST_ENDPOINTS:
if base_url in self._disabled_endpoints:
continue
if is_stable:
url = base_url
today = datetime.now().date()
params = {
"symbol": symbol,
# ~days trading days needs ~2x calendar days; +10 for slack.
"from": (today - timedelta(days=days * 2 + 10)).isoformat(),
"to": today.isoformat(),
}
else:
url = f"{base_url}/{symbol}"
params = {"timeseries": days}
try:
response = self.session.get(url, params=params, timeout=30)
time.sleep(0.3)
if response.status_code != 200:
self._record_endpoint_failure(base_url)
continue
data = response.json()
# /stable: flat list of bars (most-recent-first).
if isinstance(data, list):
if data:
self._endpoint_failures[base_url] = 0
return data[:days]
self._record_endpoint_failure(base_url)
continue
# v3: {"symbol": ..., "historical": [...]}.
if isinstance(data, dict) and "historical" in data:
self._endpoint_failures[base_url] = 0
return data["historical"]
if isinstance(data, dict) and "historicalStockList" in data:
for entry in data["historicalStockList"]:
if entry.get("symbol", "").replace("-", ".") == symbol.replace("-", "."):
self._endpoint_failures[base_url] = 0
return entry.get("historical", [])
self._record_endpoint_failure(base_url)
except Exception:
self._record_endpoint_failure(base_url)
return None
def _record_endpoint_failure(self, base_url: str) -> None:
"""Track consecutive failures and disable endpoint after threshold."""
failures = self._endpoint_failures.get(base_url, 0) + 1
self._endpoint_failures[base_url] = failures
if failures >= self._ENDPOINT_FAILURE_THRESHOLD:
self._disabled_endpoints.add(base_url)
def get_dividend_history(self, symbol: str) -> Optional[dict]:
"""Get historical dividend payments."""
result = self._get(f"historical-price-full/stock_dividend/{symbol}")
return result
def get_income_statement(self, symbol: str, limit: int = 5) -> Optional[list[dict]]:
"""Get income statement data."""
result = self._get(f"income-statement/{symbol}", {"limit": limit})
return result if result else []
def get_balance_sheet(self, symbol: str, limit: int = 5) -> Optional[list[dict]]:
"""Get balance sheet data."""
result = self._get(f"balance-sheet-statement/{symbol}", {"limit": limit})
return result if result else []
def get_cash_flow(self, symbol: str, limit: int = 5) -> Optional[list[dict]]:
"""Get cash flow statement data."""
result = self._get(f"cash-flow-statement/{symbol}", {"limit": limit})
return result if result else []
def get_key_metrics(self, symbol: str, limit: int = 5) -> Optional[list[dict]]:
"""Get key financial metrics."""
result = self._get(f"key-metrics/{symbol}", {"limit": limit})
return result if result else []
def get_company_profile(self, symbol: str) -> Optional[dict]:
"""Get company profile including sector information."""
result = self._get(f"profile/{symbol}")
if result and isinstance(result, list) and len(result) > 0:
return result[0]
return None
def get_quote_with_profile(self, symbol: str) -> Optional[dict]:
"""
Get quote data merged with profile data to include sector information.
Returns:
Dict with quote data + sector/companyName from profile, or None on error
"""
# First get quote data
quote = self._get(f"quote/{symbol}")
if not quote or not isinstance(quote, list) or len(quote) == 0:
return None
quote_data = quote[0].copy()
# Then get profile for sector information
profile = self.get_company_profile(symbol)
if profile:
# Merge profile data into quote (profile has more accurate sector/companyName)
quote_data["sector"] = profile.get("sector", "Unknown")
quote_data["companyName"] = profile.get("companyName", quote_data.get("name", ""))
quote_data["industry"] = profile.get("industry", "")
else:
# Fallback if profile fetch fails
quote_data["sector"] = quote_data.get("sector", "Unknown")
quote_data["companyName"] = quote_data.get("name", quote_data.get("companyName", ""))
return quote_data
class RSICalculator:
"""Calculate Relative Strength Index (RSI) from price data."""
@staticmethod
def calculate_rsi(prices: list[float], period: int = 14) -> Optional[float]:
"""
Calculate RSI using standard formula.
Args:
prices: List of closing prices (oldest first)
period: RSI period (default 14)
Returns:
RSI value (0-100) or None if insufficient data
"""
if len(prices) < period + 1:
return None
# Calculate price changes
changes = [prices[i] - prices[i - 1] for i in range(1, len(prices))]
# Separate gains and losses
gains = [change if change > 0 else 0 for change in changes]
losses = [-change if change < 0 else 0 for change in changes]
# Calculate initial average gain and loss
avg_gain = sum(gains[:period]) / period
avg_loss = sum(losses[:period]) / period
# Calculate smoothed averages for remaining periods
for i in range(period, len(gains)):
avg_gain = (avg_gain * (period - 1) + gains[i]) / period
avg_loss = (avg_loss * (period - 1) + losses[i]) / period
# Calculate RSI
if avg_loss == 0:
return 100.0
rs = avg_gain / avg_loss
rsi = 100 - (100 / (1 + rs))
return round(rsi, 2)
class StockAnalyzer:
"""Analyze stock fundamentals and dividend growth."""
@staticmethod
def calculate_cagr(start_value: float, end_value: float, years: int) -> Optional[float]:
"""Calculate Compound Annual Growth Rate."""
if start_value <= 0 or end_value <= 0 or years <= 0:
return None
return round(((end_value / start_value) ** (1 / years) - 1) * 100, 2)
@staticmethod
def analyze_dividend_growth(
dividend_history: list[dict],
) -> tuple[Optional[float], bool, Optional[float], int]:
"""
Analyze dividend growth rate (3-year CAGR and consistency) and return latest annual dividend.
Returns:
Tuple of (CAGR%, consistent_growth, latest_annual_dividend, years_of_growth)
"""
if not dividend_history or "historical" not in dividend_history:
return None, False, None, 0
dividends = dividend_history["historical"]
if len(dividends) < 4:
return None, False, None, 0
# Sort by date and aggregate by year
dividends = sorted(dividends, key=lambda x: x["date"])
annual_dividends = {}
for div in dividends:
year = div["date"][:4]
annual_dividends[year] = annual_dividends.get(year, 0) + div.get("dividend", 0)
# Exclude current year because partial-year dividends distort CAGR calculations.
current_year = str(date.today().year)
annual_dividends.pop(current_year, None)
if len(annual_dividends) < 4:
return None, False, None, 0
# Get all available years sorted (oldest first)
all_years = sorted(annual_dividends.keys())
all_div_values = [annual_dividends[y] for y in all_years]
# Get last 4 years for CAGR calculation
years = all_years[-4:]
div_values = [annual_dividends[y] for y in years]
# Calculate 3-year CAGR
cagr = StockAnalyzer.calculate_cagr(div_values[0], div_values[-1], 3)
# Check consistency (no significant cuts)
consistent = all(
div_values[i] >= div_values[i - 1] * 0.95 for i in range(1, len(div_values))
)
# Count consecutive years of growth (from most recent going back)
years_of_growth = 0
for i in range(len(all_div_values) - 1, 0, -1):
if all_div_values[i] >= all_div_values[i - 1] * 0.95: # Allow 5% tolerance
years_of_growth += 1
else:
break
# Latest annual dividend
latest_annual_dividend = div_values[-1]
return cagr, consistent, latest_annual_dividend, years_of_growth
@staticmethod
def is_reit(stock_data: dict) -> bool:
"""
Determine if a stock is a REIT based on sector/industry.
Args:
stock_data: Dict containing sector and/or industry fields
Returns:
True if the stock is likely a REIT
"""
sector = stock_data.get("sector", "").lower()
industry = stock_data.get("industry", "").lower()
# Check for Real Estate sector or REIT in industry
if "real estate" in sector:
return True
if "reit" in industry:
return True
return False
@staticmethod
def calculate_ffo(cash_flows: list[dict]) -> Optional[float]:
"""
Calculate Funds From Operations (FFO) for REITs.
FFO = Net Income + Depreciation & Amortization
(Simplified formula - does not include gains/losses on property sales)
Args:
cash_flows: List of cash flow statements (newest first)
Returns:
FFO value or None if data is missing
"""
if not cash_flows:
return None
latest_cf = cash_flows[0]
net_income = latest_cf.get("netIncome", 0)
depreciation = latest_cf.get("depreciationAndAmortization", 0)
if net_income == 0 and depreciation == 0:
return None
return net_income + depreciation
@staticmethod
def calculate_ffo_payout_ratio(cash_flows: list[dict]) -> Optional[float]:
"""
Calculate FFO payout ratio for REITs.
FFO Payout Ratio = Dividends Paid / FFO
Args:
cash_flows: List of cash flow statements (newest first)
Returns:
FFO payout ratio as percentage, or None if calculation fails
"""
if not cash_flows:
return None
ffo = StockAnalyzer.calculate_ffo(cash_flows)
if not ffo or ffo <= 0:
return None
latest_cf = cash_flows[0]
dividends_paid = abs(latest_cf.get("dividendsPaid", 0))
if dividends_paid <= 0:
return None
return round((dividends_paid / ffo) * 100, 1)
@staticmethod
def calculate_payout_ratios(
income_stmts: list[dict], cash_flows: list[dict], is_reit: bool = False
) -> dict:
"""
Calculate payout ratios using dividendsPaid from cash flow statement.
For REITs, uses FFO-based payout ratio instead of net income-based.
Args:
income_stmts: List of income statements (newest first)
cash_flows: List of cash flow statements (newest first)
is_reit: Whether the stock is a REIT (uses FFO for payout calculation)
Returns:
Dict with payout_ratio and fcf_payout_ratio (as percentages)
"""
result = {"payout_ratio": None, "fcf_payout_ratio": None}
if not cash_flows:
return result
latest_cf = cash_flows[0]
dividends_paid = abs(latest_cf.get("dividendsPaid", 0))
fcf = latest_cf.get("freeCashFlow", 0)
# For REITs, use FFO-based payout ratio
if is_reit:
result["payout_ratio"] = StockAnalyzer.calculate_ffo_payout_ratio(cash_flows)
else:
# For non-REITs, use traditional net income-based payout ratio
if income_stmts:
latest_income = income_stmts[0]
net_income = latest_income.get("netIncome", 0)
if net_income > 0 and dividends_paid > 0:
result["payout_ratio"] = round((dividends_paid / net_income) * 100, 1)
# Calculate FCF payout ratio (same for both REIT and non-REIT)
if fcf > 0 and dividends_paid > 0:
result["fcf_payout_ratio"] = round((dividends_paid / fcf) * 100, 1)
return result
@staticmethod
def get_payout_ratio_from_metrics(key_metrics: list[dict]) -> Optional[float]:
"""
Get payout ratio directly from key_metrics as fallback.
Args:
key_metrics: List of key metrics (newest first)
Returns:
Payout ratio as percentage, or None if not available
"""
if not key_metrics:
return None
latest = key_metrics[0]
payout_ratio = latest.get("payoutRatio")
if payout_ratio is not None:
# payoutRatio from FMP is a decimal (e.g., 0.316 = 31.6%)
return round(payout_ratio * 100, 1)
return None
@staticmethod
def analyze_financial_health(balance_sheet: list[dict]) -> dict:
"""Analyze financial health metrics."""
if not balance_sheet:
return {}
latest = balance_sheet[0]
total_debt = latest.get("totalDebt", 0)
total_equity = latest.get("totalStockholdersEquity", 0)
current_assets = latest.get("totalCurrentAssets", 0)
current_liabilities = latest.get("totalCurrentLiabilities", 0)
debt_to_equity = round(total_debt / total_equity, 2) if total_equity > 0 else None
current_ratio = (
round(current_assets / current_liabilities, 2) if current_liabilities > 0 else None
)
financially_healthy = (debt_to_equity is None or debt_to_equity < 2.0) and (
current_ratio is None or current_ratio > 1.0
)
return {
"debt_to_equity": debt_to_equity,
"current_ratio": current_ratio,
"financially_healthy": financially_healthy,
}
@staticmethod
def analyze_growth_metrics(income_stmts: list[dict]) -> dict:
"""Analyze revenue and EPS growth trends."""
if not income_stmts or len(income_stmts) < 4:
return {"revenue_cagr_3y": None, "eps_cagr_3y": None}
# Sort by date (newest first from API)
revenue_3y_ago = income_stmts[3].get("revenue", 0)
revenue_latest = income_stmts[0].get("revenue", 0)
eps_3y_ago = income_stmts[3].get("eps", 0)
eps_latest = income_stmts[0].get("eps", 0)
revenue_cagr = StockAnalyzer.calculate_cagr(revenue_3y_ago, revenue_latest, 3)
eps_cagr = StockAnalyzer.calculate_cagr(eps_3y_ago, eps_latest, 3)
return {"revenue_cagr_3y": revenue_cagr, "eps_cagr_3y": eps_cagr}
@staticmethod
def calculate_composite_score(stock_data: dict) -> float:
"""
Calculate composite score (0-100) based on:
- Dividend Growth (40%): Reward higher CAGR
- Financial Quality (30%): ROE, profit margins, debt levels
- Technical Setup (20%): Lower RSI = better entry opportunity
- Valuation (10%): P/E and P/B for context
"""
score = 0.0
# Dividend Growth Score (40 points max)
div_cagr = stock_data.get("dividend_cagr_3y", 0)
if div_cagr >= 20:
score += 40
elif div_cagr >= 15:
score += 35
elif div_cagr >= 12:
score += 30
else:
score += 20
# Add bonus for consistency
if stock_data.get("dividend_consistent", False):
score += 5
# Financial Quality Score (30 points max)
roe = stock_data.get("roe", 0)
profit_margin = stock_data.get("profit_margin", 0)
debt_to_equity = stock_data.get("debt_to_equity", 999)
if roe >= 20:
score += 12
elif roe >= 15:
score += 10
elif roe >= 10:
score += 7
else:
score += 3
if profit_margin >= 20:
score += 10
elif profit_margin >= 15:
score += 8
elif profit_margin >= 10:
score += 6
else:
score += 3
if debt_to_equity < 0.5:
score += 8
elif debt_to_equity < 1.0:
score += 6
elif debt_to_equity < 2.0:
score += 3
# Technical Setup Score (20 points max) - Lower RSI = Higher score
rsi = stock_data.get("rsi", 50)
if rsi <= 25:
score += 20 # Extreme oversold
elif rsi <= 30:
score += 18
elif rsi <= 35:
score += 15
elif rsi <= 40:
score += 12
else:
score += 5
# Valuation Score (10 points max) - Context only, not exclusionary
pe_ratio = stock_data.get("pe_ratio", 999)
pb_ratio = stock_data.get("pb_ratio", 999)
if pe_ratio < 15:
score += 5
elif pe_ratio < 25:
score += 3
if pb_ratio < 3:
score += 5
elif pb_ratio < 5:
score += 3
return round(min(score, 100), 1)
def screen_dividend_growth_pullbacks(
api_key: str,
min_yield: float = 1.5,
min_div_growth: float = 12.0,
rsi_max: float = 40.0,
max_candidates: int = None,
finviz_symbols: Optional[set[str]] = None,
) -> list[dict]:
"""
Main screening function.
Args:
api_key: FMP API key
min_yield: Minimum dividend yield % (default 1.5%)
min_div_growth: Minimum 3-year dividend CAGR % (default 12%)
rsi_max: Maximum RSI value (default 40)
max_candidates: Maximum number of candidates to analyze (None = all)
finviz_symbols: Optional set of symbols from FINVIZ pre-screening
Returns:
List of qualified stocks with full analysis
"""
client = FMPClient(api_key)
analyzer = StockAnalyzer()
rsi_calc = RSICalculator()
print(f"\n{'=' * 80}", file=sys.stderr)
print("Dividend Growth Pullback Screener", file=sys.stderr)
print(f"{'=' * 80}", file=sys.stderr)
print("\nCriteria:", file=sys.stderr)
print(f" - Dividend Yield ≥ {min_yield}%", file=sys.stderr)
print(f" - Dividend Growth (3Y CAGR) ≥ {min_div_growth}%", file=sys.stderr)
print(f" - RSI ≤ {rsi_max}", file=sys.stderr)
print(" - Market Cap ≥ $2B", file=sys.stderr)
print(" - Exchange: NYSE, NASDAQ", file=sys.stderr)
print(f"\n{'=' * 80}\n", file=sys.stderr)
# Step 1: Get candidate list
if finviz_symbols:
print(
f"Step 1: Using FINVIZ pre-screened symbols ({len(finviz_symbols)} stocks)...",
file=sys.stderr,
)
# Convert FINVIZ symbols to candidate format for FMP analysis
# We'll fetch quote data with profile to get sector information
candidates = []
print("Fetching quote and profile data from FMP for FINVIZ symbols...", file=sys.stderr)
for symbol in finviz_symbols:
stock_data = client.get_quote_with_profile(symbol)
if stock_data:
candidates.append(stock_data)
if client.rate_limit_reached:
print(
f"⚠️ FMP rate limit reached while fetching quotes. Using {len(candidates)} symbols.",
file=sys.stderr,
)
break
print(
f"Retrieved quote and profile data for {len(candidates)} symbols from FMP",
file=sys.stderr,
)
else:
print("Step 1: Initial screening using FMP Stock Screener...", file=sys.stderr)
candidates = client.screen_stocks(min_market_cap=2000000000)
print(f"Found {len(candidates)} initial candidates", file=sys.stderr)
if not candidates:
print("ERROR: No candidates found or API error", file=sys.stderr)
return []
# Limit candidates if specified
if max_candidates and not finviz_symbols:
candidates = candidates[:max_candidates]
print(f"Limiting analysis to first {max_candidates} candidates", file=sys.stderr)
print("\nStep 2: Detailed analysis of candidates...", file=sys.stderr)
print("Note: Analysis will continue until API rate limit is reached\n", file=sys.stderr)
results = []
for i, stock in enumerate(candidates, 1):
symbol = stock.get("symbol", "")
company_name = stock.get("companyName", "")
print(f"[{i}/{len(candidates)}] Analyzing {symbol} - {company_name}...", file=sys.stderr)
# Check rate limit
if client.rate_limit_reached:
print(f"\n⚠️ API rate limit reached after analyzing {i - 1} stocks.", file=sys.stderr)
print(
f"Returning results collected so far: {len(results)} qualified stocks",
file=sys.stderr,
)
break
# Get current price
current_price = stock.get("price", 0)
if current_price <= 0:
print(" ⚠️ No valid price data", file=sys.stderr)
continue
# Fetch dividend history
dividend_history = client.get_dividend_history(symbol)
if client.rate_limit_reached:
break
if not dividend_history:
print(" ⚠️ No dividend history", file=sys.stderr)
continue
# Analyze dividend growth
div_cagr, div_consistent, annual_dividend, div_years_of_growth = (
analyzer.analyze_dividend_growth(dividend_history)
)
if not div_cagr or div_cagr < min_div_growth:
print(f" ⚠️ Dividend CAGR {div_cagr}% < {min_div_growth}%", file=sys.stderr)
continue
if not annual_dividend:
print(" ⚠️ Cannot determine annual dividend", file=sys.stderr)
continue
# Calculate actual dividend yield
actual_dividend_yield = (annual_dividend / current_price) * 100
if actual_dividend_yield < min_yield:
print(
f" ⚠️ Dividend yield {actual_dividend_yield:.2f}% < {min_yield}%", file=sys.stderr
)
continue
print(
f" ✓ Dividend: {actual_dividend_yield:.2f}% yield, {div_cagr}% CAGR", file=sys.stderr
)
# Fetch historical prices for RSI
historical_prices = client.get_historical_prices(symbol, days=30)
if client.rate_limit_reached:
break
if not historical_prices or len(historical_prices) < 20:
print(" ⚠️ Insufficient price data for RSI calculation", file=sys.stderr)
continue
# Calculate RSI
prices = [p["close"] for p in reversed(historical_prices)] # Oldest first
rsi = rsi_calc.calculate_rsi(prices, period=14)
if rsi is None:
print(" ⚠️ RSI calculation failed", file=sys.stderr)
continue
if rsi > rsi_max:
print(f" ⚠️ RSI {rsi} > {rsi_max}", file=sys.stderr)
continue
print(f" ✓ RSI: {rsi} (oversold)", file=sys.stderr)
# Fetch additional fundamental data
income_stmts = client.get_income_statement(symbol, limit=5)
if client.rate_limit_reached:
break
balance_sheet = client.get_balance_sheet(symbol, limit=5)
if client.rate_limit_reached:
break
cash_flow = client.get_cash_flow(symbol, limit=5)
if client.rate_limit_reached:
break
key_metrics = client.get_key_metrics(symbol, limit=1)
if client.rate_limit_reached:
break
# Analyze growth metrics
growth_metrics = analyzer.analyze_growth_metrics(income_stmts if income_stmts else [])
# Check for positive revenue and EPS growth
revenue_cagr = growth_metrics.get("revenue_cagr_3y")
eps_cagr = growth_metrics.get("eps_cagr_3y")
if revenue_cagr is not None and revenue_cagr < 0:
print(" ⚠️ Negative revenue growth", file=sys.stderr)
continue
if eps_cagr is not None and eps_cagr < 0:
print(" ⚠️ Negative EPS growth", file=sys.stderr)
continue
# Analyze financial health
health_metrics = analyzer.analyze_financial_health(balance_sheet if balance_sheet else [])
if not health_metrics.get("financially_healthy", False):
print(" ⚠️ Financial health concerns", file=sys.stderr)
continue
# Extract additional metrics
income_stmts[0] if income_stmts else {}
latest_metrics = key_metrics[0] if key_metrics else {}
# Check if this is a REIT (uses different payout ratio calculation)
is_reit = analyzer.is_reit(stock)
# Calculate payout ratios using the new method
payout_ratios = analyzer.calculate_payout_ratios(
income_stmts if income_stmts else [], cash_flow if cash_flow else [], is_reit=is_reit
)
payout_ratio = payout_ratios["payout_ratio"]
fcf_payout_ratio = payout_ratios["fcf_payout_ratio"]
# Fallback to key_metrics if calculation failed (only for non-REITs)
if payout_ratio is None and not is_reit:
payout_ratio = analyzer.get_payout_ratio_from_metrics(
key_metrics if key_metrics else []
)
# Determine dividend sustainability
# Sustainable if payout ratio < 80% and FCF covers dividends
dividend_sustainable = False
if payout_ratio and fcf_payout_ratio:
dividend_sustainable = payout_ratio < 80 and fcf_payout_ratio < 100
elif payout_ratio:
dividend_sustainable = payout_ratio < 80
# Build result object
result = {
"symbol": symbol,
"company_name": company_name,
"sector": stock.get("sector", "Unknown"),
"market_cap": stock.get("marketCap", 0),
"price": current_price,
"dividend_yield": round(actual_dividend_yield, 2),
"annual_dividend": round(annual_dividend, 2),
"dividend_cagr_3y": div_cagr,
"dividend_consistent": div_consistent,
"rsi": rsi,
"pe_ratio": latest_metrics.get("peRatio", 0),
"pb_ratio": latest_metrics.get("pbRatio", 0),
"revenue_cagr_3y": revenue_cagr,
"eps_cagr_3y": eps_cagr,
"payout_ratio": payout_ratio,
"fcf_payout_ratio": fcf_payout_ratio,
"dividend_sustainable": dividend_sustainable,
"dividend_years_of_growth": div_years_of_growth,
"debt_to_equity": health_metrics.get("debt_to_equity"),
"current_ratio": health_metrics.get("current_ratio"),
"financially_healthy": health_metrics.get("financially_healthy", False),
"roe": latest_metrics.get("roe", 0),
"profit_margin": latest_metrics.get("netProfitMargin", 0),
}
# Calculate composite score
result["composite_score"] = analyzer.calculate_composite_score(result)
results.append(result)
print(f" ✅ QUALIFIED - Score: {result['composite_score']}", file=sys.stderr)
# Sort by composite score
results.sort(key=lambda x: x["composite_score"], reverse=True)
print(f"\n{'=' * 80}", file=sys.stderr)
print("Screening Complete!", file=sys.stderr)
print(f"Qualified Stocks: {len(results)}", file=sys.stderr)
print(f"{'=' * 80}\n", file=sys.stderr)
return results
def generate_markdown_report(results: list[dict], criteria: dict, output_path: str):
"""Generate human-readable markdown report."""
report = f"""# Dividend Growth Pullback Screening Report
**Generated:** {datetime.utcnow().strftime("%Y-%m-%d %H:%M:%S")} UTC
**Data Source:** Financial Modeling Prep API
## Executive Summary
**Total Qualified Stocks:** {len(results)}
### Screening Criteria
- **Dividend Yield:** ≥ {criteria["dividend_yield_min"]}%
- **Dividend Growth (3Y CAGR):** ≥ {criteria["dividend_cagr_min"]}%
- **RSI:** ≤ {criteria["rsi_max"]} (oversold/pullback)
- **Market Cap:** ≥ $2 billion
- **Financial Health:** Positive revenue/EPS growth, D/E < 2.0, Current Ratio > 1.0
---
"""
if not results:
report += """## No Stocks Qualified
**Possible Reasons:**
- Strong bull market with few oversold stocks
- Dividend growth criteria (12%+) is very selective
- RSI threshold may be too strict for current market conditions
**Recommendations:**
- Relax RSI threshold to ≤45 for early pullback phase
- Lower dividend growth to ≥10% for more candidates
- Check back during market corrections or sector rotations
"""
else:
for i, stock in enumerate(results, 1):
rsi_interpretation = (
"Extreme Oversold"
if stock["rsi"] < 30
else "Strong Oversold"
if stock["rsi"] < 35
else "Early Pullback"
)
report += f"""## {i}. {stock["symbol"]} - {stock["company_name"]}
**Sector:** {stock["sector"]}
**Market Cap:** ${stock["market_cap"] / 1e9:.1f}B
**Current Price:** ${stock["price"]:.2f}
**Composite Score:** {stock["composite_score"]}/100
### Dividend Growth Profile
| Metric | Value | Assessment |
|--------|-------|------------|
| Dividend Yield | **{stock["dividend_yield"]:.2f}%** | {
"✓ Above 2%" if stock["dividend_yield"] >= 2 else "⚠ Below 2%"
} |
| Annual Dividend | ${stock["annual_dividend"]:.2f} | |
| 3Y Dividend CAGR | **{stock["dividend_cagr_3y"]:.2f}%** | {
"🔥 Exceptional"
if stock["dividend_cagr_3y"] >= 20
else "✓ Excellent"
if stock["dividend_cagr_3y"] >= 15
else "✓ Strong"
} |
| Dividend Consistency | {"Yes" if stock["dividend_consistent"] else "No"} | {
"✓" if stock["dividend_consistent"] else "⚠"
} |
| Payout Ratio | {f"{stock['payout_ratio']:.1f}%" if stock["payout_ratio"] else "N/A"} | {
"✓ Sustainable"
if stock["payout_ratio"] and stock["payout_ratio"] < 70
else "⚠ High"
if stock["payout_ratio"] and stock["payout_ratio"] < 100
else "❌ Risk"
if stock["payout_ratio"]
else "N/A"
} |
### Technical Setup
| Metric | Value | Interpretation |
|--------|-------|----------------|
| RSI (14-period) | **{stock["rsi"]:.1f}** | {rsi_interpretation} |
| Entry Timing | {
"Immediate - Scale in 50%"
if stock["rsi"] < 30
else "Good - Full position OK"
if stock["rsi"] < 35
else "Conservative - High conviction"
} | |
| Stop Loss Suggestion | {
f"{((stock['rsi'] - 30) / 2 + 3):.0f}% below entry"
if stock["rsi"] >= 30
else "8% below entry"
} | |
**RSI Context:** {
"Extreme oversold reading suggests panic selling or negative news. Wait for RSI to turn up (>30) before entry to confirm stabilization."
if stock["rsi"] < 30
else "Strong oversold in uptrend. Normal correction creating entry opportunity. Can initiate position with standard risk management."
if stock["rsi"] < 35
else "Early pullback in uptrend. Conservative entry point with lower risk of further decline. Suitable for high-conviction additions."
}
### Business Fundamentals
| Metric | Value | Status |
|--------|-------|--------|
| Revenue CAGR (3Y) | {
f"{stock['revenue_cagr_3y']:.2f}%" if stock["revenue_cagr_3y"] else "N/A"
} | {"✓" if stock["revenue_cagr_3y"] and stock["revenue_cagr_3y"] > 0 else "⚠"} |
| EPS CAGR (3Y) | {f"{stock['eps_cagr_3y']:.2f}%" if stock["eps_cagr_3y"] else "N/A"} | {
"✓" if stock["eps_cagr_3y"] and stock["eps_cagr_3y"] > 0 else "⚠"
} |
| ROE | {f"{stock['roe']:.1f}%" if stock["roe"] else "N/A"} | {
"✓ Excellent"
if stock["roe"] and stock["roe"] >= 20
else "✓ Good"
if stock["roe"] and stock["roe"] >= 15
else "⚠ Moderate"
if stock["roe"]
else "N/A"
} |
| Net Profit Margin | {f"{stock['profit_margin']:.1f}%" if stock["profit_margin"] else "N/A"} | {
"✓" if stock["profit_margin"] and stock["profit_margin"] >= 10 else "⚠"
} |
### Financial Health
| Metric | Value | Status |
|--------|-------|--------|
| Debt-to-Equity | {
f"{stock['debt_to_equity']:.2f}" if stock["debt_to_equity"] is not None else "N/A"
} | {
"✓ Very Low"
if stock["debt_to_equity"] and stock["debt_to_equity"] < 0.5
else "✓ Low"
if stock["debt_to_equity"] and stock["debt_to_equity"] < 1.0
else "⚠ Moderate"
if stock["debt_to_equity"]
else "N/A"
} |
| Current Ratio | {f"{stock['current_ratio']:.2f}" if stock["current_ratio"] else "N/A"} | {
"✓ Healthy"
if stock["current_ratio"] and stock["current_ratio"] > 1.2
else "⚠ Adequate"
if stock["current_ratio"]
else "N/A"
} |
### Investment Thesis
**10-Year Dividend Projection ({stock["dividend_cagr_3y"]:.0f}% CAGR):**
- Current Yield on Cost: {stock["dividend_yield"]:.2f}%
- Year 5 Yield on Cost: {stock["dividend_yield"] * (1 + stock["dividend_cagr_3y"] / 100) ** 5:.2f}%
- Year 10 Yield on Cost: {stock["dividend_yield"] * (1 + stock["dividend_cagr_3y"] / 100) ** 10:.2f}%
**Entry Strategy:**
{f"- RSI {stock['rsi']:.0f} indicates {rsi_interpretation.lower()} condition"}
- {
"Scale in with 50% position now, add remaining on RSI >30 confirmation"
if stock["rsi"] < 30
else f"Full position acceptable with stop loss {((stock['rsi'] - 30) / 2 + 3):.0f}% below entry"
if stock["rsi"] < 35
else "Conservative entry for high-conviction add with 3-5% stop loss"
}
- Time horizon: 6-12 months minimum (long-term dividend growth play)
**Risk Factors:**
{
f"- Payout ratio {stock['payout_ratio']:.0f}% limits dividend growth runway"
if stock["payout_ratio"] and stock["payout_ratio"] > 70
else "- Monitor payout ratio sustainability"
}
{
f"- Debt-to-equity {stock['debt_to_equity']:.1f} requires monitoring"
if stock["debt_to_equity"] and stock["debt_to_equity"] > 1.0
else ""
}
- RSI can remain oversold in downtrends - watch for reversal confirmation
- Dividend growth may slow if business growth moderates
---
"""
report += f"""
## Methodology
This screening combines fundamental dividend analysis with technical timing indicators:
1. **Fundamental Filter:** Dividend yield ≥{criteria["dividend_yield_min"]}%, dividend CAGR ≥{criteria["dividend_cagr_min"]}%, positive business growth
2. **Technical Filter:** RSI ≤{criteria["rsi_max"]} identifies temporary pullbacks in quality stocks
3. **Quality Filter:** Financial health checks (debt, liquidity, profitability)
4. **Ranking:** Composite score balancing dividend growth (40%), quality (30%), technical setup (20%), valuation (10%)
**Investment Philosophy:**
High dividend growth stocks (12%+ CAGR) compound wealth through rising dividends rather than high current yield. A 1.5% yielding stock growing dividends at 15%/year becomes a 4% yielder in 6 years and 9% yielder in 12 years - far superior to a 4% yielder growing at 3%/year. Buying during RSI oversold conditions (≤40) enhances returns by entering at technical support levels.
---
**Disclaimer:** This report is for informational purposes only. Past dividend growth does not guarantee future performance. RSI oversold conditions do not guarantee price reversals. Conduct thorough due diligence and consult a financial advisor before making investment decisions.
**Report Generated:** {datetime.utcnow().isoformat()}Z
"""
# Write report
with open(output_path, "w") as f:
f.write(report)
print(f"✅ Markdown report saved: {output_path}", file=sys.stderr)
def main():
parser = argparse.ArgumentParser(
description="Screen dividend growth stocks with RSI oversold using FINVIZ + FMP API (two-stage approach)",
formatter_class=argparse.RawDescriptionHelpFormatter,
epilog="""
Examples:
# Two-stage screening: FINVIZ pre-screen + FMP detailed analysis (RECOMMENDED)
python3 screen_dividend_growth_rsi.py --use-finviz
# FMP-only screening (original method)
python3 screen_dividend_growth_rsi.py
# Provide API keys as arguments
python3 screen_dividend_growth_rsi.py --use-finviz --fmp-api-key YOUR_FMP_KEY --finviz-api-key YOUR_FINVIZ_KEY
# Custom parameters
python3 screen_dividend_growth_rsi.py --use-finviz --min-yield 2.0 --min-div-growth 15.0 --rsi-max 35
Environment Variables:
FMP_API_KEY - Financial Modeling Prep API key
FINVIZ_API_KEY - FINVIZ Elite API key (required for --use-finviz)
""",
)
parser.add_argument(
"--fmp-api-key", type=str, help="FMP API key (or set FMP_API_KEY environment variable)"
)
parser.add_argument(
"--finviz-api-key",
type=str,
help="FINVIZ Elite API key (or set FINVIZ_API_KEY environment variable)",
)
parser.add_argument(
"--use-finviz",
action="store_true",
help="Use FINVIZ Elite API for pre-screening (recommended to reduce FMP API calls)",
)
parser.add_argument(
"--min-yield", type=float, default=1.5, help="Minimum dividend yield %% (default: 1.5)"
)
parser.add_argument(
"--min-div-growth",
type=float,
default=12.0,
help="Minimum 3-year dividend CAGR %% (default: 12.0)",
)
parser.add_argument(
"--rsi-max", type=float, default=40.0, help="Maximum RSI value (default: 40.0)"
)
parser.add_argument(
"--max-candidates",
type=int,
default=None,
help="Maximum candidates to analyze (default: all, only applies to FMP-only mode)",
)
args = parser.parse_args()
# Get FMP API key
fmp_api_key = args.fmp_api_key or os.environ.get("FMP_API_KEY")
if not fmp_api_key:
print(
"ERROR: FMP API key required. Provide via --fmp-api-key or FMP_API_KEY environment variable",
file=sys.stderr,
)
sys.exit(1)
# FINVIZ pre-screening (optional)
finviz_symbols = None
if args.use_finviz:
finviz_api_key = args.finviz_api_key or os.environ.get("FINVIZ_API_KEY")
if not finviz_api_key:
print(
"ERROR: FINVIZ API key required when using --use-finviz. Provide via --finviz-api-key or FINVIZ_API_KEY environment variable",
file=sys.stderr,
)
sys.exit(1)
print(f"\n{'=' * 80}", file=sys.stderr)
print("DIVIDEND GROWTH PULLBACK SCREENER (TWO-STAGE)", file=sys.stderr)
print(f"{'=' * 80}\n", file=sys.stderr)
finviz_client = FINVIZClient(finviz_api_key)
finviz_symbols = finviz_client.screen_stocks()
if not finviz_symbols:
print("ERROR: No stocks found in FINVIZ pre-screening", file=sys.stderr)
sys.exit(1)
print(f"\n{'=' * 80}\n", file=sys.stderr)
# Run screening
results = screen_dividend_growth_pullbacks(
api_key=fmp_api_key,
min_yield=args.min_yield,
min_div_growth=args.min_div_growth,
rsi_max=args.rsi_max,
max_candidates=args.max_candidates,
finviz_symbols=finviz_symbols,
)
# Prepare metadata
criteria = {
"dividend_yield_min": args.min_yield,
"dividend_cagr_min": args.min_div_growth,
"rsi_max": args.rsi_max,
"revenue_trend": "positive over 3 years",
"eps_trend": "positive over 3 years",
}
# Generate outputs
today = date.today().isoformat()
# Determine output directory (project root logs/ folder)
script_dir = os.path.dirname(os.path.abspath(__file__))
# Navigate from skills/dividend-growth-pullback-screener/scripts to project root
project_root = os.path.dirname(os.path.dirname(os.path.dirname(script_dir)))
logs_dir = os.path.join(project_root, "logs")
os.makedirs(logs_dir, exist_ok=True)
# JSON output
json_output = {
"metadata": {
"generated_at": datetime.utcnow().isoformat() + "Z",
"criteria": criteria,
"total_results": len(results),
},
"stocks": results,
}
json_path = os.path.join(logs_dir, f"dividend_growth_pullback_results_{today}.json")
with open(json_path, "w") as f:
json.dump(json_output, f, indent=2)
print(f"✅ JSON results saved: {json_path}", file=sys.stderr)
# Markdown report
md_path = os.path.join(logs_dir, f"dividend_growth_pullback_screening_{today}.md")
generate_markdown_report(results, criteria, md_path)
print(f"\n{'=' * 80}", file=sys.stderr)
print(f"Screening complete! Found {len(results)} qualified stocks.", file=sys.stderr)
print(f"{'=' * 80}\n", file=sys.stderr)
if __name__ == "__main__":
main()
"""FMP /stable migration for dividend-growth-pullback-screener.
Keys issued after 2025-08-31 lose v3 access (403). FMPClient._get now routes
the legacy v3 path-style endpoints to their /stable query-style equivalents
(with a v3 fallback) and normalizes responses to the v3 shapes callers expect:
- historical-price-full/stock_dividend/{sym} -> dividends?symbol= (flat list
wrapped as {"historical": [...]})
- key-metrics: roe <- returnOnEquity
- cash-flow-statement: dividendsPaid <- netDividendsPaid
get_historical_prices is also fixed to /stable/historical-price-eod/full
(flat-list parsing + from/to bounding) so RSI has data again.
"""
import os
import sys
import pytest
sys.path.insert(0, os.path.join(os.path.dirname(__file__), ".."))
from unittest.mock import MagicMock # noqa: E402
import screen_dividend_growth_rsi as mod # noqa: E402
from screen_dividend_growth_rsi import FMPClient # noqa: E402
@pytest.fixture(autouse=True)
def _no_sleep(monkeypatch):
monkeypatch.setattr(mod.time, "sleep", lambda *_a, **_k: None)
def _resp(status_code, payload):
resp = MagicMock()
resp.status_code = status_code
resp.json.return_value = payload
return resp
def _client(router):
client = FMPClient("test_key")
session = MagicMock()
session.get.side_effect = router
client.session = session
return client, session
class TestGetRouting:
def test_statement_path_to_stable_query(self):
client, session = _client(lambda *a, **k: _resp(200, [{"symbol": "AAPL", "revenue": 1}]))
client.get_income_statement("AAPL", limit=5)
call = session.get.call_args_list[0]
assert call[0][0].endswith("/stable/income-statement")
assert call[1]["params"]["symbol"] == "AAPL"
assert call[1]["params"]["limit"] == 5
def test_screener_to_company_screener(self):
client, session = _client(lambda *a, **k: _resp(200, [{"symbol": "X"}]))
client.screen_stocks(min_market_cap=2_000_000_000)
assert session.get.call_args_list[0][0][0].endswith("/stable/company-screener")
def test_dividends_normalized_to_historical(self):
flat = [{"symbol": "KO", "date": "2026-05-11", "dividend": 0.53}]
client, _ = _client(lambda *a, **k: _resp(200, flat))
result = client.get_dividend_history("KO")
assert isinstance(result, dict) and result["historical"] == flat
def test_key_metrics_roe_alias(self):
client, _ = _client(lambda *a, **k: _resp(200, [{"returnOnEquity": 1.2}]))
assert client.get_key_metrics("AAPL", limit=1)[0]["roe"] == 1.2
def test_cashflow_dividends_paid_alias(self):
client, _ = _client(lambda *a, **k: _resp(200, [{"netDividendsPaid": -8_000_000}]))
assert client.get_cash_flow("AAPL", limit=1)[0]["dividendsPaid"] == -8_000_000
def test_v3_fallback_when_stable_fails(self):
def router(url, params=None, timeout=None):
if "/stable/" in url:
return _resp(403, {})
return _resp(200, [{"symbol": "AAPL", "sector": "Tech"}])
client, session = _client(router)
assert client.get_company_profile("AAPL")["sector"] == "Tech"
urls = [c[0][0] for c in session.get.call_args_list]
assert any(u.endswith("/api/v3/profile/AAPL") for u in urls)
class TestHistoricalPrices:
def test_stable_flat_list_with_from_to(self):
bars = [{"date": "2026-05-19", "close": 100.0}, {"date": "2026-05-18", "close": 99.0}]
def router(url, params=None, timeout=None):
assert url.endswith("/stable/historical-price-eod/full")
assert "from" in (params or {}) and "to" in (params or {})
return _resp(200, bars)
client, _ = _client(router)
assert client.get_historical_prices("AAPL", days=30) == bars # flat list, close intact
"""Tests for dividend-growth-pullback-screener screening logic.
These tests validate the core calculation functions without requiring
live API keys (FMP or FINVIZ). All external I/O is stubbed.
"""
from __future__ import annotations
import importlib.util
import math
import sys
from pathlib import Path
from types import ModuleType
from unittest.mock import MagicMock
import pytest
# ---------------------------------------------------------------------------
# Helpers to import the main script without executing top-level side effects
# ---------------------------------------------------------------------------
SCRIPT_PATH = Path(__file__).resolve().parents[1] / "screen_dividend_growth_rsi.py"
def _load_script() -> ModuleType:
"""Import screen_dividend_growth_rsi as a module."""
spec = importlib.util.spec_from_file_location("screen_dg", SCRIPT_PATH)
mod = importlib.util.module_from_spec(spec) # type: ignore[arg-type]
# Stub heavy imports that are not needed for unit tests
sys.modules.setdefault("requests", MagicMock())
sys.modules.setdefault("pandas", MagicMock())
spec.loader.exec_module(mod) # type: ignore[union-attr]
return mod
# ---------------------------------------------------------------------------
# RSI calculation tests
# ---------------------------------------------------------------------------
class TestRsiCalculation:
"""Validate the 14-period RSI formula used in the screener."""
@pytest.fixture(scope="class")
def mod(self):
if not SCRIPT_PATH.exists():
pytest.skip(f"Script not found: {SCRIPT_PATH}")
return _load_script()
def _prices_up(self, n: int = 30) -> list[float]:
"""Steadily rising prices → RSI should be high (>70)."""
return [100.0 + i for i in range(n)]
def _prices_down(self, n: int = 30) -> list[float]:
"""Steadily falling prices → RSI should be low (<30)."""
return [100.0 - i for i in range(n)]
def _prices_flat(self, n: int = 30) -> list[float]:
"""Flat prices (no change) → RSI = 50 by convention."""
return [100.0] * n
def test_rsi_function_exists(self, mod):
"""The script must expose a callable that computes RSI."""
candidates = [
name for name in dir(mod) if "rsi" in name.lower() and callable(getattr(mod, name))
]
assert candidates, "No RSI function found in the script"
def test_rsi_rising_prices_above_50(self, mod):
candidates = [n for n in dir(mod) if "rsi" in n.lower() and callable(getattr(mod, n))]
fn = getattr(mod, candidates[0])
try:
result = fn(self._prices_up())
except Exception:
pytest.skip("RSI function signature differs; skipping value test")
if result is None:
pytest.skip("RSI function returned None for rising prices")
assert result > 50, f"RSI for rising prices should be >50, got {result}"
def test_rsi_falling_prices_below_50(self, mod):
candidates = [n for n in dir(mod) if "rsi" in n.lower() and callable(getattr(mod, n))]
fn = getattr(mod, candidates[0])
try:
result = fn(self._prices_down())
except Exception:
pytest.skip("RSI function signature differs; skipping value test")
if result is None:
pytest.skip("RSI function returned None for falling prices")
assert result < 50, f"RSI for falling prices should be <50, got {result}"
def test_rsi_bounds(self, mod):
"""RSI must always be in [0, 100]."""
candidates = [n for n in dir(mod) if "rsi" in n.lower() and callable(getattr(mod, n))]
fn = getattr(mod, candidates[0])
for prices in [self._prices_up(), self._prices_down(), self._prices_flat()]:
try:
result = fn(prices)
except Exception:
continue
if result is None:
continue
assert 0 <= result <= 100, f"RSI out of [0,100] bounds: {result}"
# ---------------------------------------------------------------------------
# Dividend CAGR calculation tests
# ---------------------------------------------------------------------------
class TestDividendCagr:
"""Validate dividend CAGR computation."""
@pytest.fixture(scope="class")
def mod(self):
if not SCRIPT_PATH.exists():
pytest.skip(f"Script not found: {SCRIPT_PATH}")
return _load_script()
def test_cagr_function_exists(self, mod):
assert hasattr(mod, "StockAnalyzer"), "StockAnalyzer class not found"
assert hasattr(mod.StockAnalyzer, "calculate_cagr"), (
"calculate_cagr not found in StockAnalyzer"
)
def test_cagr_doubles_in_six_years(self, mod):
"""12% CAGR should double the dividend in ~6 years."""
fn = mod.StockAnalyzer.calculate_cagr
try:
# Dividend goes from 1.0 to 2.0 over 6 years ≈ 12.2% CAGR
result = fn(1.0, 2.0, 6)
except Exception:
pytest.skip("CAGR function signature differs; skipping value test")
if result is None:
pytest.skip("CAGR function returned None")
assert 11 < result < 14, f"Expected ~12% CAGR, got {result}"
def test_cagr_zero_years_safe(self, mod):
"""CAGR with zero years should not raise ZeroDivisionError."""
fn = mod.StockAnalyzer.calculate_cagr
try:
result = fn(1.0, 2.0, 0)
assert result is None or math.isnan(result) or result == 0
except ZeroDivisionError:
pytest.fail("CAGR function raised ZeroDivisionError for n=0")
except Exception:
pass # Other exceptions are acceptable for edge cases
# ---------------------------------------------------------------------------
# Script structure / CLI smoke tests
# ---------------------------------------------------------------------------
class TestScriptStructure:
"""Ensure the script file meets structural requirements."""
def test_script_exists(self):
assert SCRIPT_PATH.exists(), f"Main script missing: {SCRIPT_PATH}"
def test_script_has_main_guard(self):
source = SCRIPT_PATH.read_text()
assert 'if __name__ == "__main__"' in source or "if __name__ == '__main__'" in source, (
"Script should have a __main__ guard"
)
def test_script_references_fmp_api(self):
source = SCRIPT_PATH.read_text()
assert "FMP_API_KEY" in source or "fmp_api_key" in source or "fmp-api-key" in source, (
"Script should reference FMP_API_KEY"
)
def test_script_references_rsi(self):
source = SCRIPT_PATH.read_text()
assert "rsi" in source.lower(), "Script should implement or reference RSI"
def test_output_dir_argument(self):
"""Script should accept --output-dir for report placement."""
source = SCRIPT_PATH.read_text()
assert "output" in source.lower(), "Script should support an output directory argument"
Related skills
How it compares
Pick dividend-growth-pullback-screener over high-yield value screeners when dividend CAGR compounding and RSI entry timing matter more than current yield above 3%.
FAQ
What API keys does dividend-growth-pullback-screener require?
dividend-growth-pullback-screener requires an FMP_API_KEY environment variable. FINVIZ Elite API access is optional but recommended for two-stage pre-screening that dramatically reduces FMP call volume.
What screening thresholds does dividend-growth-pullback-screener apply?
dividend-growth-pullback-screener filters for 3-year dividend CAGR at or above 12%, yield at or above 1.5%, market cap at or above $2 billion, and 14-period RSI at or below 40 on NYSE and NASDAQ listings.
Is Dividend Growth Pullback Screener safe to install?
skills.sh reports 2 of 3 security scanners passed. Review the Security Audits panel on this page before installing in production.