diff --git a/esphome/config_validation.py b/esphome/config_validation.py
index 1e54c04fe5..9862a52c3e 100644
--- a/esphome/config_validation.py
+++ b/esphome/config_validation.py
@@ -40,7 +40,7 @@ ALLOW_EXTRA = vol.ALLOW_EXTRA
 UNDEFINED = vol.UNDEFINED
 RequiredFieldInvalid = vol.RequiredFieldInvalid
 
-ALLOWED_NAME_CHARS = 'abcdefghijklmnopqrstuvwxyz0123456789_'
+ALLOWED_NAME_CHARS = 'abcdefghijklmnopqrstuvwxyz0123456789_-'
 
 RESERVED_IDS = [
     # C++ keywords http://en.cppreference.com/w/cpp/keyword
diff --git a/esphome/const.py b/esphome/const.py
index a3b953397a..011eab6e90 100644
--- a/esphome/const.py
+++ b/esphome/const.py
@@ -10,7 +10,7 @@ ESP_PLATFORM_ESP32 = 'ESP32'
 ESP_PLATFORM_ESP8266 = 'ESP8266'
 ESP_PLATFORMS = [ESP_PLATFORM_ESP32, ESP_PLATFORM_ESP8266]
 
-ALLOWED_NAME_CHARS = 'abcdefghijklmnopqrstuvwxyz0123456789_'
+ALLOWED_NAME_CHARS = 'abcdefghijklmnopqrstuvwxyz0123456789_-'
 # Lookup table from ESP32 arduino framework version to latest platformio
 # package with that version
 # See also https://github.com/platformio/platform-espressif32/releases
diff --git a/esphome/dashboard/templates/index.html b/esphome/dashboard/templates/index.html
index d7ba9373be..142bc2cd6f 100644
--- a/esphome/dashboard/templates/index.html
+++ b/esphome/dashboard/templates/index.html
@@ -359,7 +359,7 @@
                 <p>
                   Names must be all <strong>lowercase</strong> and <strong>must not contain any spaces</strong>!
                   Characters that are allowed are: <code class="inlinecode">a-z</code>,
-                  <code class="inlinecode">0-9</code> and <code class="inlinecode">_</code>.
+                  <code class="inlinecode">0-9</code>, <code class="inlinecode">_</code> and <code class="inlinecode">-</code>.
                 </p>
 
                 <div class="input-field col s12">
diff --git a/esphome/wizard.py b/esphome/wizard.py
index b1a0b17072..97c45c9e1a 100644
--- a/esphome/wizard.py
+++ b/esphome/wizard.py
@@ -168,8 +168,9 @@ def wizard(path):
             name = cv.valid_name(name)
             break
         except vol.Invalid:
-            safe_print(color("red", "Oh noes, \"{}\" isn't a valid name. Names can only include "
-                                    "numbers, lower-case letters and underscores.".format(name)))
+            safe_print(color("red", f"Oh noes, \"{name}\" isn't a valid name. Names can only "
+                                    f"include numbers, lower-case letters, underscores and "
+                                    f"hyphens."))
             name = strip_accents(name).lower().replace(' ', '_')
             name = ''.join(c for c in name if c in cv.ALLOWED_NAME_CHARS)
             safe_print("Shall I use \"{}\" as the name instead?".format(color('cyan', name)))
diff --git a/tests/test4.yaml b/tests/test4.yaml
index 61c1e278c4..ab78e22fef 100644
--- a/tests/test4.yaml
+++ b/tests/test4.yaml
@@ -5,7 +5,7 @@ esphome:
   build_path: build/test4
 
 substitutions:
-  devicename: test4
+  devicename: test-4
 
 ethernet:
   type: LAN8720
diff --git a/tests/unit_tests/test_config_validation.py b/tests/unit_tests/test_config_validation.py
index ced75af105..846df71a94 100644
--- a/tests/unit_tests/test_config_validation.py
+++ b/tests/unit_tests/test_config_validation.py
@@ -27,7 +27,7 @@ def test_alphanumeric__invalid(value):
         actual = config_validation.alphanumeric(value)
 
 
-@given(value=text(alphabet=string.ascii_lowercase + string.digits + "_"))
+@given(value=text(alphabet=string.ascii_lowercase + string.digits + "_-"))
 def test_valid_name__valid(value):
     actual = config_validation.valid_name(value)