The best dividend stocks are not always the ones with the highest yields. After all, a company that pays a 10% dividend today might be doing so because it paid 5% a year ago and just saw its share price cut in half. Instead of simply chasing yield, then, long-term investors should consider buying a stock based on its dividend growth potential. This will increase your personal yield over time even if the dividend yield for new money never changes much.
The best dividend stocks are the ones that have a strong record of dividend growth and the potential for continued dividend increases going forward. Here are five stocks that fit that description: Ameriprise Financial (AMP), Baxter (BAX), Texas Instruments (TXN), CME Group (CME) and Cisco (CSCO).
Source: InvestorPlace
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