Close your eyes, and think about your last stock trade. What made you choose that stock? Why trade at that time? Better yet, what made you choose all the stocks that make up your entire portfolio? Investors make decisions about companies using all kinds of information; it might be recent stock performance, or company news, or even a gut feeling about an upcoming market shift. People are influenced differently by different information. For instance, some investors love finding stocks that pay regular dividends, and some don’t chase dividends at all. Others are dividend neutral. But there’s no need to be so divided on dividends.
Often times there isn’t an objectively correct opinion to have about a particular stock. Everyone uses their own perspectives, their own set of criteria, to guide their trading activity – but a good stock screener can make that process a lot easier.
The Benefits of Stock Screening
Through Credential Direct’s Financial Screener you can quickly search the entire market for Canadian and U.S. stocks that fit your investment strategy. Screening stocks through criteria like share price, dividend yield, and market capitalization (to name a few filter options) can be a good way to make faster, more informed trading decisions.
Some investors may like to search for stocks that pay a high dividend. Others may like to find stocks that have high earnings per share. Some dig a little deeper for Balance Sheet items such as a low debt/equity ratio. Essentially, it’s a fast way to find companies that may make a good investment, according to your own data and decision making preferences.
How the Stock Screener Works
The Financial Screener helps you sort through Canadian and U.S. stocks based on a variety of filters and criteria that you choose. Each screener has a set of default criteria, which can be modified by adding and deleting criteria settings such as limiting your search to a particular exchange or share price.
Once you’re logged into your Credential Direct account, you can find the Financial Screener under “Tools” in the left hand sidebar. If you’re not sure where to begin, you can also use one of the 15 Preset Screens such as “Strong Forecasted Growth”, “Bottom Fishing”, “Largest Sales Revenue”, or even “Dogs of the Dow”. Either way, you have control to ‘play around’ with your selections until you find a perfect match.
Whether you’re ready to trade immediately or you’re just doing some research, the stock screener provides a great tool for looking at the market. Either way, you can use the Credential Direct Financial Screener as a tool to help you make your investment decisions. So fire up the screener and start tracking down your next trade. If you have any questions, we’re always here to help.
The information contained in this post was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This post is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell any mutual funds and other securities. On-line brokerage is offered through Credential Direct, a division of Credential Securities Inc., operating as a separate business unit. Unless otherwise stated, mutual funds and other securities are not insured nor guaranteed, their values change frequently, and past performance may not be repeated. Credential Securities Inc. is a member of the Canadian Investor Protection Fund (CIPF).