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10 Dividend Growth Stocks for 2018

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Dividend growth stocks have obvious appeal. After all, dividend investing is based on buying and holding a stock for the payouts. So if a company can consistently increase its distributions to investors over time, all the better.

Unlike traditional growth investing, where you depend on a stock increasing in value based on profits or sales trends, dividend growth investing focuses on the payouts above all else. The best dividend stocks to buy offer regular deposits into your bank account, but the best dividend growth stocks are committed to making those paychecks larger every year.

Think of it this way: If you pay $40 a share and get a $1 annual dividend, you have a 2.5% yield on your investment. But if that payout increases to $1.40 annually after a few years your yield is now 3.5% based on your cost to buy the stock... and if the dividend growth continues to $1.80 annually, you're now making 4.5% yield. And all by keeping your money in the same place and depending on bigger payouts!

That's the power of dividend growth investing in 2018. Not only are you getting a stable return on your initial investment, but your payouts continue to increase over time.

So what are some of the most impressive dividend growth plays on Wall Street as we enter 2018? Here are 10 to consider.

SEE ALSO FROM KIPLINGER: The 15 Best Dividend-Paying Stocks

Prices and data are from the original InvestorPlace story published on Nov. 8. Click on ticker-symbol links in each slide for current prices and more.

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

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