FOrder combining #previous and #sector

Research
1

Hi all,
Brand new to portfolio123 and am confused about FOrder, hope someone can point me in the right direction.

I have a basic screen that screens the universe of stocks based on a number of metrics (PE, ROE, etc). At the end, I then want to return the top 2 best yielding stocks from each sector that match the previous screen definition in order to prevent all picks from coming from a single sector. How would I go about doing this with FOrder (or some other functions)?

I’ve been banging my head trying to figure out how to do this with FOrder, but can’t seem to get anywhere so I assume I am approaching this totally wrong.

Thanks!

2

Hi,

You can do that with the factors moved into a ranking system. See; www.portfolio123.com/app/screen/summary/145492?st=1&mt=1

Walter

3
  1. create a ranking system with one factor, yield, and rank withing the sector higher is better
  2. set the ranking system in your screen
  3. add this rule at the last rule (it must be the last): SecCount<2

You will get 20 stocks that have the highest yield within the sector (assuming your rules are not too restrictive)

Also see this screen I just created: https://www.portfolio123.com/app/screen/summary/145501?mt=1

You have to be careful with very high yields. It could be that the company has suspended the dividend with a press release and the data provider did not pick it up. Only way is to put some safeguards:

DivPSDays(180)>0 // must have paid a dividend in past 180 days
yield < 12 // avoid high yields likely suspended or about to be

.

4

Another potential red flag is to compare the company’s OperCashFlttm to DivPaidttm. If they are paying out more in dividends than they are creating in cash flow from operations, that could mean they are borrowing money or dipping into cash reserves to pay for dividends. Hard to sustain that for the long term.
Financial sector companies could be different, though (Like REITs or Commbanks).