yfinance_dividend_evaluation.ipynb

{
  "nbformat": 4,
  "nbformat_minor": 0,
  "metadata": {
    "colab": {
      "provenance": []
    },
    "kernelspec": {
      "name": "python3",
      "display_name": "Python 3"
    },
    "language_info": {
      "name": "python"
    }
  },
  "cells": [
    {
      "cell_type": "markdown",
      "source": [
        "Author: Jason\n",
        "\n",
        "Creation Date: 02/03/2023\n",
        "\n",
        "Theme: Financial Stock --> Dividend Evaluation"
      ],
      "metadata": {
        "id": "cSgDBygPD0WG"
      }
    },
    {
      "cell_type": "code",
      "execution_count": 2,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "j8clbMctDPAZ",
        "outputId": "8ff56213-8238-4649-b71d-7b7afbdda68c"
      },
      "outputs": [
        {
          "output_type": "stream",
          "name": "stdout",
          "text": [
            "Looking in indexes: https://pypi.org/simple, https://us-python.pkg.dev/colab-wheels/public/simple/\n",
            "Collecting yfinance\n",
            "  Downloading yfinance-0.2.12-py2.py3-none-any.whl (59 kB)\n",
            "\u001b[2K     \u001b[90m━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━\u001b[0m \u001b[32m59.2/59.2 KB\u001b[0m \u001b[31m4.7 MB/s\u001b[0m eta \u001b[36m0:00:00\u001b[0m\n",
            "\u001b[?25hCollecting frozendict>=2.3.4\n",
            "  Downloading frozendict-2.3.5-cp38-cp38-manylinux_2_17_x86_64.manylinux2014_x86_64.whl (111 kB)\n",
            "\u001b[2K     \u001b[90m━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━\u001b[0m \u001b[32m111.2/111.2 KB\u001b[0m \u001b[31m9.1 MB/s\u001b[0m eta \u001b[36m0:00:00\u001b[0m\n",
            "\u001b[?25hCollecting beautifulsoup4>=4.11.1\n",
            "  Downloading beautifulsoup4-4.11.2-py3-none-any.whl (129 kB)\n",
            "\u001b[2K     \u001b[90m━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━\u001b[0m \u001b[32m129.4/129.4 KB\u001b[0m \u001b[31m12.2 MB/s\u001b[0m eta \u001b[36m0:00:00\u001b[0m\n",
            "\u001b[?25hCollecting requests>=2.26\n",
            "  Downloading requests-2.28.2-py3-none-any.whl (62 kB)\n",
            "\u001b[2K     \u001b[90m━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━\u001b[0m \u001b[32m62.8/62.8 KB\u001b[0m \u001b[31m6.8 MB/s\u001b[0m eta \u001b[36m0:00:00\u001b[0m\n",
            "\u001b[?25hRequirement already satisfied: pandas>=1.3.0 in /usr/local/lib/python3.8/dist-packages (from yfinance) (1.3.5)\n",
            "Requirement already satisfied: lxml>=4.9.1 in /usr/local/lib/python3.8/dist-packages (from yfinance) (4.9.2)\n",
            "Requirement already satisfied: multitasking>=0.0.7 in /usr/local/lib/python3.8/dist-packages (from yfinance) (0.0.11)\n",
            "Requirement already satisfied: appdirs>=1.4.4 in /usr/local/lib/python3.8/dist-packages (from yfinance) (1.4.4)\n",
            "Requirement already satisfied: numpy>=1.16.5 in /usr/local/lib/python3.8/dist-packages (from yfinance) (1.22.4)\n",
            "Collecting cryptography>=3.3.2\n",
            "  Downloading cryptography-39.0.2-cp36-abi3-manylinux_2_28_x86_64.whl (4.2 MB)\n",
            "\u001b[2K     \u001b[90m━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━\u001b[0m \u001b[32m4.2/4.2 MB\u001b[0m \u001b[31m71.3 MB/s\u001b[0m eta \u001b[36m0:00:00\u001b[0m\n",
            "\u001b[?25hCollecting html5lib>=1.1\n",
            "  Downloading html5lib-1.1-py2.py3-none-any.whl (112 kB)\n",
            "\u001b[2K     \u001b[90m━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━\u001b[0m \u001b[32m112.2/112.2 KB\u001b[0m \u001b[31m11.2 MB/s\u001b[0m eta \u001b[36m0:00:00\u001b[0m\n",
            "\u001b[?25hRequirement already satisfied: pytz>=2022.5 in /usr/local/lib/python3.8/dist-packages (from yfinance) (2022.7.1)\n",
            "Collecting soupsieve>1.2\n",
            "  Downloading soupsieve-2.4-py3-none-any.whl (37 kB)\n",
            "Requirement already satisfied: cffi>=1.12 in /usr/local/lib/python3.8/dist-packages (from cryptography>=3.3.2->yfinance) (1.15.1)\n",
            "Requirement already satisfied: six>=1.9 in /usr/local/lib/python3.8/dist-packages (from html5lib>=1.1->yfinance) (1.15.0)\n",
            "Requirement already satisfied: webencodings in /usr/local/lib/python3.8/dist-packages (from html5lib>=1.1->yfinance) (0.5.1)\n",
            "Requirement already satisfied: python-dateutil>=2.7.3 in /usr/local/lib/python3.8/dist-packages (from pandas>=1.3.0->yfinance) (2.8.2)\n",
            "Requirement already satisfied: urllib3<1.27,>=1.21.1 in /usr/local/lib/python3.8/dist-packages (from requests>=2.26->yfinance) (1.26.14)\n",
            "Requirement already satisfied: idna<4,>=2.5 in /usr/local/lib/python3.8/dist-packages (from requests>=2.26->yfinance) (2.10)\n",
            "Requirement already satisfied: charset-normalizer<4,>=2 in /usr/local/lib/python3.8/dist-packages (from requests>=2.26->yfinance) (3.0.1)\n",
            "Requirement already satisfied: certifi>=2017.4.17 in /usr/local/lib/python3.8/dist-packages (from requests>=2.26->yfinance) (2022.12.7)\n",
            "Requirement already satisfied: pycparser in /usr/local/lib/python3.8/dist-packages (from cffi>=1.12->cryptography>=3.3.2->yfinance) (2.21)\n",
            "Installing collected packages: soupsieve, requests, html5lib, frozendict, cryptography, beautifulsoup4, yfinance\n",
            "  Attempting uninstall: requests\n",
            "    Found existing installation: requests 2.25.1\n",
            "    Uninstalling requests-2.25.1:\n",
            "      Successfully uninstalled requests-2.25.1\n",
            "  Attempting uninstall: html5lib\n",
            "    Found existing installation: html5lib 1.0.1\n",
            "    Uninstalling html5lib-1.0.1:\n",
            "      Successfully uninstalled html5lib-1.0.1\n",
            "  Attempting uninstall: beautifulsoup4\n",
            "    Found existing installation: beautifulsoup4 4.6.3\n",
            "    Uninstalling beautifulsoup4-4.6.3:\n",
            "      Successfully uninstalled beautifulsoup4-4.6.3\n",
            "Successfully installed beautifulsoup4-4.11.2 cryptography-39.0.2 frozendict-2.3.5 html5lib-1.1 requests-2.28.2 soupsieve-2.4 yfinance-0.2.12\n"
          ]
        }
      ],
      "source": [
        "# install package needed\n",
        "!pip install yfinance"
      ]
    },
    {
      "cell_type": "code",
      "source": [
        "# Reference From -->\n",
        "# https://www.youtube.com/watch?v=e5W16XIcpsY \n",
        "# https://anonoz.github.io/finance/2022/02/28/google-sheets-klse-sgx.html "
      ],
      "metadata": {
        "id": "NXHPfNEADzoX"
      },
      "execution_count": null,
      "outputs": []
    },
    {
      "cell_type": "code",
      "source": [
        "import yfinance as yf\n",
        "import pandas as pd\n",
        "#import plotly.graph_objects as g\n",
        "\n",
        "'''\n",
        "share code 1023 will be used as an example\n",
        "CIMB Group Holdings Bhd (1023.KL)\n",
        "https://finance.yahoo.com/quote/1023.KL?p=1023.KL&.tsrc=fin-srch \n",
        "'''\n",
        "\n",
        "'''\n",
        "step 1: allow users to enter share ticket code of their choice\n",
        "\n",
        "'''\n",
        "stock_id = input(\"insert share ticket code:\")\n",
        "stock = yf.Ticker(stock_id + '.KL') # search the stocks we want to evaluate\n",
        "\n",
        "dividend = round(stock.dividends, 3) # 3 decimal point\n",
        "data = pd.DataFrame(dividend)\n",
        "data = data.reset_index() # take care of the table  arrangement\n",
        "average = data[\"Dividends\"].tail(10).mean() # average dividend for the past 10 years\n",
        "\n",
        "\n",
        "'''\n",
        "step 2: carry out the evaluation\n",
        "\n",
        "Point 1: \n",
        "Dividend Discount Model (DDM) -->\n",
        "DDM is a valuation method used to estimate the intrinsic value of a company's \n",
        "stock based on the present value of its expected future dividends\n",
        "\n",
        "Point 2:\n",
        "Allow us to know many years will it take for investor to break-even based on \n",
        "the stock price purchased\n",
        "\n",
        "Point 3:\n",
        "Set margin of safety --> \n",
        "Based on the concept introduced by Benjamin Graham\n",
        "\n",
        "'''\n",
        "safe = 0.8 # 20% margin of safety --> safe boundary (margin of safety 安全边际)\n",
        "\n",
        "cheap = round(average * 15 * safe, 2) # years took to return on investment --> 15\n",
        "middle = round(average * 20 * safe, 2) # '2' refers to the decimal points\n",
        "expensive = round(average * 25 * safe, 2) # 25 years ROI\n",
        "\n",
        "print(f\"cheap: {cheap}\")\n",
        "print(f\"middle: {middle}\")\n",
        "print(f\"expensive: {expensive}\")"
      ],
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "Q1NXfeFuD7yJ",
        "outputId": "12fb605d-b77b-4cf0-9666-048cce8b7169"
      },
      "execution_count": 3,
      "outputs": [
        {
          "output_type": "stream",
          "name": "stdout",
          "text": [
            "insert share ticket code:1023\n",
            "cheap: 1.4\n",
            "middle: 1.87\n",
            "expensive: 2.34\n"
          ]
        }
      ]
    }
  ]
}