Utility companies

Screening Filters

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

   • Purpose: To focus on large-cap utility companies.
   • Rationale: Large-cap companies are typically more stable, well-established, and less volatile, which aligns with the characteristics often associated with utility companies. These companies tend to have a strong market presence and are more likely to provide consistent returns.

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

   • Purpose: To identify utility companies that offer attractive dividend yields.
   • Rationale: Utility companies are often sought after for their reliable dividend payments. A minimum dividend yield of 3% ensures that the selected companies provide a reasonable level of income for investors, which is a common expectation for this sector.

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

   • Purpose: To filter for utility companies with relatively low valuations.
   • Rationale: A P/E ratio cap of 20 helps identify companies that are not overvalued compared to their earnings. This is particularly important for utility companies, as they are generally considered value-oriented investments rather than high-growth stocks.

4. Sector (sector: Utilities):

   • Purpose: To narrow the search specifically to utility companies.
   • Rationale: The user explicitly requested utility companies, so this filter ensures that only companies within the Utilities sector are included in the results.

Why Results Match:

• The filters are tailored to focus on large, stable utility companies, which aligns with the user's request for "utility companies."
• By including criteria for dividend yield and P/E ratio, the screener ensures that the results highlight utility companies that are not only sector-relevant but also financially attractive to investors seeking income and value.
• The combination of these filters ensures that the results are both relevant to the Utilities sector and meet common investment criteria for stability, income, and reasonable valuation.