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
-
Not all utility stocks are cut from the same cloth. There have been some dividend blow-ups in the sector, as a few have become over-leverage...
-
Two conservative industry bellwethers with giant yields and strong businesses -- there's a lot to love here. Dividends are only as good ...
-
In today’s market, high-yield stocks are usually not the safest bets. I mean, if a company is solid and offers a yield much higher than its ...
-
This REIT continues to make a strong value proposition for investors that value income stability in a volatile market. It convinces in terms...
-
Studies have shown that there is no single best season or month to trade stocks -- take that, January Effect! That said, there are some soli...
-
You have good reason to be nervous. Anyone who had just seen their retirement account take a big haircut would lose sleep. The question is, ...
-
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 ...
-
Most dividend stocks pay on a quarterly or even semi-annual basis. And while that may not seem like a problem, for many retirees used to a m...
-
It is said that income investing is a negative art. Your goal isn’t to pick the winners — it’s to avoid the losers. You want to pick winners...
-
Buying and holding high-quality, high-yield dividend stocks is a great way for investors to predictably generate market-beating returns over...
out of these 3 at this moment I would chose MGA. Thanks for sharing.
Abbvie is high yield today.....