Dividends4Life: 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 also 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 bead on whether a company has room to increase its dividend. Ideally, we like to see healthy payout ratios between 50% and 75%.

Here are three income stocks with payout ratios currently below 50% that could potentially double their dividends: For a change, we'll begin the week by focusing our attention on one of the best under-the-radar dividend payers in the retail sector, American Eagle Outfitters (NYSE:AEO). Another dividend-paying company that income investors would be wise to monitor is asset management holding company Brookfield Asset Management (NYSE:BAM). The last income stock for investors to dig into is Kaiser Aluminum (NASDAQ:KALU), a producer of semi-fabricated specialty aluminum products used in the aerospace and defense, automotive, and industrial applications industries.

Source: Motley Fool

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