Dividends4Life: 2 Dividend Growth Stocks of the Future

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2 Dividend Growth Stocks of the Future

Posted by D4L | Saturday, February 15, 2014 | | 0 comments »

There are few investments hotter than dividend growth stocks. Following the 2008 financial crisis, many investors saw the risks inherent in stocks built solely for capital appreciation. Why not look for capital appreciation and cash dividends at the same time? The logic follows that a portfolio that spins off cash dividends can provide current income, regardless of where stock prices go. And thanks to dividends, investors won't have to sell shares at less-than-opportune times (say, 2009) to raise cash for immediate needs.

A list of dividend aristocrats (dividend stocks that have increased dividends for 25 years or more) gives you a look at history's best dividend stocks. You'll find conventional widow-and-orphan stocks in this list -- Coca-Cola, Procter & Gamble, and Johnson & Johnson. What about the dividend stocks of the future? If I had to make a wager, I'd place my bet on Visa (NYSE: V) and MasterCard (NYSE: MA) becoming full-blown dividend growth names in the decades to follow. Here are three reasons: 1. They're cash cows, 2. Valuation and 3. Future growth.

Source: Motley Fool

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