YUM - Yields Up To 5.8% Top 3 Dividend Stocks To Buy In February
2024-02-08 17:33:58 ET
Summary
- The stock market rally in 2024 is more concentrated, with just four stocks responsible for nearly 75% of the S&P 500's total return.
- The concentration of top stocks in market-weighted indices like the S&P 500 has reached a staggering 25.5%, increasing risk for investors.
- While the SPY's forecasted future returns are a mere 5.5% annually, I present you with 3 dividend growth stocks worth buying in February.
- All three stocks recently experienced a pullback driven by factors such as interest rates, earnings, or market sentiment, presenting the potential for double-digit returns and strong dividend growth.
The stock market has started 2024 on a strong footing, with the S&P 500 ( SP500 ) climbing 4.8% in just the first 38 days of the year.
However, unlike 2023 where a group of seven major companies, the Magnificent 7, drove most of the gains, this year's rally is much more concentrated.
Just four stocks are responsible for nearly 75% of the S&P 500's total return so far, highlighting a shift towards a more narrow market performance:
- Amazon ( AMZN ), YTD return 12.24%, Blended P/E 56.4x.
- Meta ( META ) , YTD return 32.67%, Blended P/E 30.5x.
- Microsoft ( MSFT ) , YTD return 10.11%, Blended P/E 38.1x.
- Nvidia ( NVDA ) , YTD return 41.55%, Blended P/E 56.4x.