Top dividend stocks 2020 (part2)
The top dividend stocks 2020 United States
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Welcome to part 2 of my top dividend article series, today we’re looking at the US dividend aristocrats. If you are not familiar with dividend stocks, then you should start with part 1, where I explain the basics.
So let’s start with the US dividend aristocrats, they have beaten the broad market over the long term and at the same time posted lower price losses in weak market phases.
Aristocrats are suitable for both novice and experienced investors. If you want to take less risk and at the same time do not want to forego performance and a high dividend, these stocks are excellent basic investments. With dividend aristocrats, you can beat the index and generate a stable passive income.
List of US dividend aristocrats
In order to provide a better overview, I will divide the stocks into sectors.
stock name (symbol) DY: (Dividend yield) P/E ratio
The price-earnings ratio (P/E ratio) relates a company’s share price to its earnings per share. A high P/E ratio could mean:
that investors are expecting high growth rates in the future.
that a company’s stock is over-valued.
A higher P/E ratio shows that investors are willing to pay more for a share today because they expect growth in the future.
The average P/E for the S&P 500 has historically ranged from 13 to 15. For example, a company with a current P/E of 25, above the S&P average, trades at 25 times earnings.
I can already hear people say “A high P/E does not necessarily mean a stock is overvalued.”
That's true, Investors also use the P/E ratio to determine the future earnings growth.
For example, if earnings are expected to rise, investors might expect the company to increase its dividends, higher dividends typically lead to a higher stock price.
On top of that, any P/E ratio needs to be considered against the backdrop of the P/E for the company’s sector.
With that in mind let’s look into the list!
