Dividend investment has been around for as long as anyone can remember in the financial world. Dividend stocks, according to the performance of the S&P 500 index, have an advantage over other types of equities, such as growth stocks, because they provide better returns to shareholders. Dividend investors prefer to create a self-sustaining passive income stream. According to Greenrock Research, dividend stocks outpaced the S&P 500 by 2.13 percent yearly from 1958 to 2018. This is due to the fact that dividend payments account for a large portion of the total return on the stock market. The pattern has persisted for decades, if not centuries, and continues to this day. The Coca-Cola Company and Johnson & Johnson have both grown their dividends for over 50 years. These stocks are far more expensive and difficult to invest in for new investors, so we’ve put together a list of inexpensive dividend stocks under $20.
Insider Monkey looks at the 10 best dividend stocks to buy under $20. On the list of the top dividend stocks to buy under $20, First Horizon Corporation is ranked 10th. The stock has a forward PE ratio of 10, and it has gained 40.96 percent in the last six months and 39.1 percent so far this year. Investors Bancorp, Inc. is the 9th best dividend stock to buy under $20 on the list. The company plans to complete the acquisition of eight Berkshire Bank branches by June 30th, and its stock has risen 41.26 percent in the last six months. On the list of the top dividend stocks to buy under $20, People’s United Financial, Inc. is ranked eighth. In the last six months, the company has gained 37.38 percent, and year to date, it has gained 38.77 percent. On the list of the top dividend stocks to buy under $20, the company is ranked seventh. Huntington Bancshares Incorporated is a regional bank holding company with 839 branches and 1,322 ATMs spread across seven states in the Midwest. Algonquin Power & Utilities Corp. is the 6th best dividend stock to buy under $20 on the list. In April, Credit Suisse’s Andrew Kuske suggested the company was an excellent investment for dividend growth investors. For more details, click 10 Best Dividend Stocks to Buy Under $20.
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