Growing dividends are one of the most valuable characteristics a stock can have; few things are more effective than steadily rising cash flows from an investment to generate confidence about the worth of a company and its underlying strength. These five companies combine strong business prospects with plenty of upside room in their dividend payments due to low payout ratios. This makes them attractive candidates from a dividend growth point of view.

When you buy a stock, it’s certainly nice to know that the company will continue increasing dividends over the years, even under challenging conditions. High quality names with strong fundamentals and low dividend payout ratios are a great place to look for the best dividend growth candidates to hold for the long term.

Source: Motley Fool

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