financial digits

What is the best stock for dividend? The recent stock market selloff due to the global coronavirus outbreak has made the search best stock for dividend an important investing and trading strategy. Because of this, there are many filters and screeners to use and search for the best stock for dividend.

So, we made a stock screener search and used filters to find 13 best high-dividend stocks to buy for 2020.

First, It is important to realize this list does not guarantee any future returns. Second, on the positive side, these stocks can bounce off their lows. Third, we need to emphasize and to clarify that if there are more stock market declines, these stocks could also decline. Above all this very important to begin with.

Best stock for dividend stock market screener

  1. Dividend yield at least 6%
  2. In addition, a dividend growth rate annual at least 8%
  3. An equally important payout ratio (TTM) no more than 45%
  4. Furthermore, a P/E ratio of no more than 11. As a matter of fact, many stocks have a very low ratio.

Our financial analysis of these best dividend stocks to buy and hold in 2020 are selected based on important financial metrics. In this case, these metrics are:

  1. The attractive dividend which can be high enough due to the stock market selloff. Because high dividends should compensate now for higher risk. In addition, a high dividend yield can provide regular income. Consequently, this makes these stocks attractive for investing in.
  2. Dividend growth for the past fiscal year, so that dividends show growth which is desirable.
  3. Sustainable payout ratio, not too excessive so that dividends are not reduced in the future
  4. P/E ratio that is very attractive for value investing
Best stock for dividend
Best stock for dividend

As a result, these are the stocks our stock screener analysis has shown:

1. ConocoPhillips (COP)

Stock price: $26.25

Market Cap: 28.538B

Forward Dividend & Yield: $1.68 (6.44%)

PE Ratio (TTM): 4.10

Sector: Energy

2. Manulife Financial Corporation (MFC)

Stock price: $10.08

Market Cap: 20.02B

Forward Dividend & Yield: 0.84 (8.05%)

PE Ratio (TTM): 10.97

Sector: Financial Services

3. Prudential Financial, Inc. (PRU)

Stock price: $46.77

Market Cap: 18.568B

Forward Dividend & Yield: 4.40 (10.15%)

PE Ratio (TTM): 4.63

Sector: Financial Services

4. KeyCorp (KEY)

Stock price: $10.24

Market Cap: 9.932B

Forward Dividend & Yield: 0.74 (7.23%)

PE Ratio (TTM): 6.32

Sector: Financial Services

5. WPP plc (WPP)

Stock price: $29.73

Market Cap: 7.551B

Forward Dividend & Yield: 3.79 (12.61%)

PE Ratio (TTM): 3.01

Sector: Communication Services

6. Royal Caribbean Cruises Ltd. (RCL)

Stock price: $27.66

Market Cap: 5.781B

Forward Dividend & Yield: 3.12 (11.28%)

PE Ratio (TTM): 3.09

Sector: Consumer Cyclical

7. Comerica Incorporated (CMA)

Stock price: $34.40

Market Cap: 4.862B

Forward Dividend & Yield: 2.72 (7.91%)

PE Ratio (TTM): 4.37

Sector: Financial Services

8. Foot Locker, Inc. (FL)

Stock price: $24.01

Market Cap: 2.511B

Forward Dividend & Yield: 1.60 (6.66%)

PE Ratio (TTM): 5.27

Sector: Consumer Cyclical

9. Ternium S.A. (TX)

Stock price: $11.41

Market Cap: 2.24B

Forward Dividend & Yield: 1.20 (6.78%)

PE Ratio (TTM): 3.97

Sector: Basic Materials

10. Penske Automotive Group, Inc. (PAG)

Stock price: $26.57

Market Cap: 2.162B

Forward Dividend & Yield: 1.68 (6.32%)

PE Ratio (TTM): 5.03

Sector: Consumer Cyclical

11. Copa Holdings, S.A. (CPA)

Stock price: $38.97

Market Cap: 1.647B

Forward Dividend & Yield: 3.20 (6.67%)

PE Ratio (TTM): 6.70

Sector: Industrials

12. Alliance Data Systems Corporation (ADS)

Stock price: $30.87

Market Cap: 1.47B

Forward Dividend & Yield: 2.52 (8.16%)

PE Ratio (TTM): 5.65

Sector: Financial Services

13. CIT Group Inc. (CIT)

Stock price: $20.00

Market Cap: 1.961B

Forward Dividend & Yield: 1.40 (7.24%)

PE Ratio (TTM): 3.79

Sector: Financial Services

Stock market volatility and best stock for dividend

Recent stock market volatility is very high, making the search best stock for dividend conservative trading and investing strategy. Our stock screener using the filters above showed these long-term dividend stocks, dividend stocks for passive income.

As a matter of fact, if stock market volatility is very high, high dividend stocks are more defensive stocks in comparison to other stocks that do not pay any dividend.

Important notes for this best stock for dividend investing strategy:

  • All prices are at the close, March 17, 2020.
  • Sources: Investing.com, Yahoo Finance

A low P/E ratio adds value investing, but caution is required for these high-dividend stocks

In conclusion, a low P/E ratio may be the result of low stock market prices. For example, it could be the result of higher earnings. For these stocks with attractive dividend yield, a low P/E ratio is the result of lower stock prices. This does not mean that these stocks cannot be considered cheap at these prices.

The following quarters will be very important for the global economy and stocks. If the effects of this coronavirus crisis are temporary, then these stocks could bounce off their low-price levels. If they do, then there will be a double profit for traders and investors buying them at these price levels.

First, the potential stock price appreciation. In addition to that, the dividends paid.  In any case, this best stock for the dividend list is useful for defensive trading strategies, as volatile conditions are now present in the stock markets. Because of this, and taking into consideration that high-dividend stocks are defensive stocks, this list and the stocks mentioned can be further examined for their fundamental analysis.

In summary, it is important to realize that this list of stocks used only specific investing criteria. Subsequently, another key point that should be remembered is that these stocks have declined significantly off their highs in the previous months.

This is the most compelling evidence that stock market declines can send high-dividend stocks lower as well. To put it another way, under those circumstances now, in the long run, these stocks can perform well.

All in all and everything considered with this in mind, these stocks may add value to a well-diversified portfolio. In order to invest wisely so as not to take an excessive risk now, this search for the best stock for dividend yield is the first start for further stock analysis.

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