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: We'll begin the week by taking a closer look at a biotech behemoth that's potentially guilty of being too good: Gilead Sciences (NASDAQ:GILD). Another attractive rebound candidate is railroad giant Union Pacific (NYSE:UNP), which just finished up a challenging 2016. Sticking with the theme of gigantic companies, the last attractive income stock this week is money center bank JPMorgan Chase (NYSE:JPM).

Source: Motley Fool

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