4 Out-of-the-Box Dividend Stocks With Growth Potential

Interest-rate-sensitive stocks have been through some trying times in the last six months as investors have weighed whether the Federal Open Market Committee would raise rates or hold pat. The increased volatility in the market over the last four months has resulted in a rebirth of interest in dividend stocks as investors are now trying to straddle a bevy of scenarios from the markets.

Our Behavioral Valuation model identifies dividend growth stock opportunities by looking for the underappreciated (or uncrowded trades) opportunities within dividend-yielding stocks. This approach provides yields in excess of 3% — an attractive interest rate substitute in the case that rates don’t move higher. At the same time, the growth potential for these stocks should help them thrive in case the FOMC does slowly raise rates. Using this list, we’ve come up with the following four out-of-the-box dividend stocks with growth potential: Caterpillar Inc. (CAT), Darden Restaurants, Inc. (DRI), Tanger Factory Outlet Centers (SKT) and Bank of Montreal (USA) (BMO).

Source: InvestorPlace

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