yield_channel: Yield Channel

In pverspeelt/Quantfunctions: Contains a diverse set of functions and indicators to add functionality to Quantmod, TTR and Quantstrat

Description

Shows the dividend channels of a dividend stock.

Usage

yield_channel(ticker, n = 12, dividend_channel = TRUE, dividend_bands = TRUE)

Arguments

ticker	A stock symbol
n	number of years to look back. Ideally one or two business cycles. Default look back period is 12 years.
dividend_channel	Show the dividend channels. Default is TRUE.
dividend_bands	Show the dividend bands. Default is TRUE.

Details

If a dividend stock's price is below the channel it might indicate that it is undervalued based on the historical dividend yields. If it is above the channel it might indicate that it is overvalued. The dividend bands show bands of slightly overvalued to highly overvalued and slightly undervalued and highly undervalued.

The calculation for the dividend channels are based on the 5% and the 95% value of the dividend percentages and smoothed out via a loess regression. The stock is undervalued if its current dividend yield is higher than the average dividend yield of the past based on the chosen look back period. The shorter the look back period, the faster a stock might appear under- or overvalued.

The dividend bands show ranges between 5%-25%, 25%-50%, 50%-75% and 75%-95% percentage. These bands are not smoothed out and will show the steps in dividend increases.

More information can be found in this Seeking Alpha article.

Value

Returns a chart showing the price, the dividend channels and dividend bands.

Examples

## Not run: 
# shows the yield channel chart for Merck.
yield_channel("MRK")

## End(Not run)

pverspeelt/Quantfunctions documentation built on Oct. 10, 2021, 1:01 p.m.