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 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 read on whether or not a company has room to increase its dividend. Payout ratios between 50% and 75% are ideal. Here are three income stocks with payout ratios currently below 50% that could potentially double their dividend payments...

We'll begin the week by thinking large with Danish megacap Novo Nordisk A/S (NYSE:NVO) in a sector not traditionally known for dividend income, healthcare. Next, personal care, household, and specialty products manufacturer Church & Dwight Co., Inc. (NYSE:CHD) could be worth a look for income seekers desiring a stable investment. Finally, income investors looking for an exciting long-term investment opportunity in the industrial sector may want to give Fluor Corporation (NYSE:FLR) a closer look.

Source: Motley Fool

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