To see how focusing solely on current yield distorts the payout picture, take a look at Microsoft Corporation (MSFT). The stock currently boasts a 2.6% dividend yield, just above the S&P 500 average of 2.2%. That’s not bad, but it masks the 125% boost in the company’s dividend over the past five years. Before you ask, no, I don’t recommend buying Microsoft now, despite its glowing dividend history. That’s because the software giant’s payout hikes could be a lot smaller in the next five years than they were in the last five.
Luckily, the three stocks below face no such roadblocks. Not only do they have the low payout ratios and rising earnings they need to double their payouts in the next five years, they’re trading at bargain valuations, to boot: Ingersoll-Rand PLC (IR), Magna International Inc. (MGA) and AbbVie Inc (ABBV).
Source: InvestorPlace
Related Articles:
- Warren Buffett's Secret To 50% Returns
- 7 Undervalued, Big-Name Stocks To Consider For Your Dividend Portfolio
- 7 High-Yield Energy Stocks Growing Their Dividends
- 5 Dividend Stocks In Need Of A Market Correction
- 10 Dividend Stocks Building A Growing Cash Stream
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
For long-term performance, investors should consider pivoting their portfolios toward stocks that deliver high and growing dividend payouts,...
-
Finding great long-term investments that will pay you dividends for years to come isn't always easy. Plenty of stocks offer high yields,...
-
Talk to the average financial advisor, and they’ll say there’s no way to earn a safe 12% yield on your investment these days. After all, ban...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Any company that can double its dividend over a five-year stretch is delivering rapid payout growth. To reach that target, the company would...
-
By any measure the stock market is overbought. With yields still at historic lows despite the increases in the federal funds rate, and the p...
-
As regular readers know, cash cows constitute mature businesses. Because they have little in the way of growth prospects, these firms pay ou...
-
Dividend investors often get stuck with popular names in their portfolio, perhaps because these stocks are so often talked about that there&...
-
Buying and holding great dividend stocks is a fantastic way for patient investors to achieve outsize returns over the long run. But not ever...
out of these 3 at this moment I would chose MGA. Thanks for sharing.
Abbvie is high yield today.....