Where should I put 10000

Screening Filters

1. Market Cap: Minimum $10 Billion

   • Purpose: To focus on large-cap companies with established business models and financial stability.
   • Rationale: Large-cap stocks are generally less volatile and more reliable for investors looking to allocate a significant amount of money (e.g., $10,000). These companies are typically leaders in their industries and have a proven track record of performance, making them suitable for investors seeking stability and lower risk.

2. P/E Ratio (TTM): Maximum 20

   • Purpose: To identify stocks that are reasonably valued or undervalued based on their earnings.
   • Rationale: A P/E ratio below 20 suggests that the stock is not excessively overvalued, which is important for investors looking to deploy capital prudently. This filter ensures that the selected stocks have a balance between growth potential and reasonable pricing, reducing the risk of overpaying for a stock.

3. Revenue 5-Year CAGR: Minimum 10%

   • Purpose: To find companies with consistent and strong revenue growth over the past five years.
   • Rationale: A revenue growth rate of at least 10% indicates that the company is expanding its business and generating increasing sales. This is a key metric for identifying companies with strong growth potential, which is important for maximizing returns on a $10,000 investment.

4. Dividend Yield (TTM): Minimum 2%

   • Purpose: To ensure the selected stocks provide a steady income stream through dividends.
   • Rationale: A dividend yield of at least 2% offers a reliable return on investment, even if the stock price remains stable. This is particularly appealing for investors seeking a combination of growth and income, as dividends can provide a cushion against market volatility.

5. Beta: LowRisk

   • Purpose: To focus on stocks with low volatility compared to the overall market.
   • Rationale: Low-beta stocks are less sensitive to market fluctuations, making them suitable for risk-averse investors or those looking to preserve capital while earning steady returns. This aligns with the user's need to allocate $10,000 in a relatively safe and stable manner.

Why Results Match:

• The filters collectively target large, stable, and financially sound companies with reasonable valuations, strong growth potential, and reliable income through dividends. This ensures that the user's $10,000 investment is allocated to stocks that balance growth, income, and risk management.
• By focusing on low-beta stocks, the screener minimizes exposure to market volatility, which is particularly important for investors who prioritize capital preservation while seeking moderate returns.
• The combination of growth (revenue CAGR), value (P/E ratio), and income (dividend yield) ensures a diversified approach to meeting the user's investment goals.