Dividends4Life: 3 Attractive Income Stocks Whose Dividends Could Double

Dividend stocks are often the foundation of a great retirement portfolio. Dividend payments not only put money in your pocket, which can help hedge against any downward move in the stock market, but they're usually a sign of a financially sound company. Dividends also give investors a painless opportunity to reinvest in a stock, thus boosting future payouts and compounding gains over time. Yet not all income stocks live up to their full potential.

Utilizing the payout ratio, or the percentage of profits a company returns in the form of a dividend to its shareholders, we can get a good bead on whether a company has room to increase its dividend. Ideally, we like to see healthy payout ratios between 50% and 75%. Here are three income stocks with payout ratios currently below 50% that could potentially double their dividends: Cisco Systems (NASDAQ:CSCO), J.B. Hunt Transport Services (NASDAQ:JBHT) and Teva Pharmaceutical Industries (NYSE:TEVA).

Source: Motley Fool

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