Dividends4Life: 3 Attractive Income Stocks Whose Dividends Could Double

Dividend stocks can be the foundation of a great retirement portfolio. Not only do the payments put money in your pocket, which can help hedge against any dips in the stock market, they're usually a sign of a financially sound company. Dividends also give investors a painless opportunity to reinvest in a stock, thus compounding gains over time. However, not all income stocks live up to their full potential. Using the payout ratio -- i.e., the percentage of profits a company returns to its shareholders as dividends -- 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...

This week I figured we'd start out in the technology sector and examine a niche software company that I believe could become a dividend gem within the next decade, Intuit (NASDAQ:INTU). Next, we'll take a look at a sector known for producing income giants -- financials -- and take a brief dive into why Opus Bank (NASDAQ:OPB) could greatly increase its dividend in the coming years. Dividend investors would also be wise to pay attention to Cardinal Health (NYSE:CAH), which is already showing some flair as an income gem in the healthcare sector.

Source: Motley Fool

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