Where to invest 10000

Screening Filters

1. Market Capitalization (market_cap: min $10 billion):

   • Purpose: To focus on large-cap companies with a market capitalization of at least $10 billion.
   • Rationale: Large-cap companies are generally more stable, well-established, and less volatile compared to smaller companies. For someone looking to invest $10,000, these companies provide a safer and more reliable investment option, especially for those who may not want to take on excessive risk.

2. Price-to-Earnings Ratio (pe_ttm: max 20):

   • Purpose: To identify stocks that are reasonably valued or undervalued based on their earnings.
   • Rationale: A P/E ratio below 20 is often considered a benchmark for stocks that are not overly expensive relative to their earnings. This ensures the user is not overpaying for growth and helps identify companies with a good balance of value and potential.

3. Dividend Yield (dividend_yield_ttm: min 2%):

   • Purpose: To find companies that provide a steady income through dividends.
   • Rationale: A minimum dividend yield of 2% ensures the user is selecting stocks that offer a reasonable return in the form of dividends. This is particularly appealing for investors seeking passive income or a more conservative investment approach.

4. Revenue 5-Year CAGR (revenue_5yr_cagr: min 5%):

   • Purpose: To focus on companies with consistent revenue growth over the past five years.
   • Rationale: A minimum compound annual growth rate (CAGR) of 5% in revenue indicates that the company is growing steadily. This filter helps identify companies with a strong track record of expanding their business, which is a positive indicator for future performance.

Why Results Match:

• The filters collectively aim to identify large, stable companies with a combination of reasonable valuation, steady income through dividends, and consistent revenue growth. These characteristics align well with the needs of an investor looking to allocate $10,000 in a balanced and relatively low-risk manner.
• By focusing on large-cap stocks with a P/E ratio under 20, the screener avoids overpriced or speculative investments, ensuring the user gets good value for their money.
• The dividend yield filter ensures the user benefits from regular income, while the revenue growth filter highlights companies with a proven ability to grow, offering potential for capital appreciation over time.