I’ve gone through Goldman’s picks and selected a dozen high-quality, low-priced stocks with a history of strong dividend payouts and the potential for dividend growth. Half the portfolio has a history of very high dividend growth, while the other half has very good dividend coverage and the potential for future dividend growth. Overall, it’s cheaper than the S&P 500, with a price-to-earnings (P/E) ratio of 20.7, versus 25.6 for the broader market. Yet combined they boast a higher dividend yield than the S&P 500; they’re cheaper; and they have a stronger historical return. On average, these stocks pay a 2.5% yield, and they’ve grown their payouts by 34.4% in the last five years.
Source: Forbes January 28, 2017 13:43 UTC