Please enable JavaScript to view the comments powered by Disqus.
Slide Show

1 of 8

Practical Advice from

7 Dividend Stocks Whose Payouts Could Double in 3 Years

Getty Images

The legendary Wayne Gretzky famously said, “A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.”

Well, it’s not all that different with dividend stocks. If you’re looking for good long-term returns, you’ll buy a stock sporting an attractive dividend yield. But if you want great returns, you’ll look for stocks raising their dividends year after year.

Over a long time horizon, high-dividend-growth stocks are a lot more likely to keep pace with inflation. Plus, let’s face it — it’s nice getting a raise every year, and that’s exactly what dividend growth stocks do. With every passing year, the amount of cold, hard cash they put in your pocket increases.

But dividends also tell a far more important story. An exceptionally high dividend yield is often a sign of financial distress … and a sign that dividend cuts are a lot more likely than dividend hikes. But dividend growth is a sign of company health. Company boards of directors only vote to raise the payout if they believe a lot more cash will be coming in to replace it.

I don’t have a crystal ball, and I can’t say with 100% certainty which dividend stocks are going to grow their payout the fastest in the years ahead. But looking at recent dividend growth history gives us a good starting point.

Here's a look at seven stocks that I expect to double their dividends over the next three years. Most aren't what I consider monster dividend yielders today, but all at least pay a respectable current dividend that promises to get a lot bigger in the years to come.

Prices and data are from the original InvestorPlace story published on September 7, 2017. Click on ticker-symbol links in each slide for current prices and more.

SEE ALSO FROM KIPLINGER: Quiz: How Well Do You Know Dividends?

This slide show is from InvestorPlace, not the Kiplinger editorial staff.

View as One Page

Check Out

Kiplinger's Latest Online Broker Rankings

Advertisement