TKC - 3 Top Stocks Under $20
What makes a stock a "top stock?"
There are probably as many definitions out there as there are investors. Some will emphasize deep value, others will focus on rapid growth, and still others will prefer a great dividend. But really, with nearly 8,000 publicly traded stocks to choose from, I wonder: Why should you have to choose? You've only got a limited amount of money to invest, after all. Instead of compromising on stocks that have just one or two of these qualities, why not insist on all three?
That's why today we're going to be looking for stocks selling cheaper than the average price-to-earnings ratio of 23.5, growing faster than the 10% average growth rate projected for the S&P 500, and paying more than the 1.9% average dividend yield. According to the stock screener at finviz.com, however, that still leaves us with 142 stocks to choose from, so to narrow the field even more, we're going to insist on an absolute stock price of less than $20 -- so once you've found a top stock, you can buy a lot of shares of it.