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, but 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 read on whether or not a company has room to increase its dividend. Payout ratios between 50% and 75% are ideal. Here are three income stocks with payout ratios currently below 50% that could potentially double their dividend payments.

Income investors often turn to bank stocks when looking for a steady dividend, but few offer the dividend growth potential of Southeastern regional bank Regions Financial (NYSE:RF). Another company that should be on the radars of income investors is TJX Companies (NYSE:TJX), the company best known for its TJ Maxx retail stores. The biggest concern at the moment for TJX Companies and its shareholders is the dismal same-store sales results reported by big department stores Macy's and Kohl's this holiday season. A final company income seekers would be wise to give a look is Applied Materials (NASDAQ:AMAT). Applied Materials provides manufacturing equipment to semiconductor companies, meaning its business tends to be highly cyclical.

Source: Motley Fool

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