3 Dividend Stocks to Buy for 10%-Plus Annual Dividend Growth

Dividend investors often pay attention to stocks with the highest yields, and understandably so; the appeal of a big yield for income-focused investors is difficult to overlook. But over time, investors can often generate larger dividends by selecting quality blue chip stocks with high levels of dividend growth, rather than simply chasing the highest yield they can find today.

The idea is that the investor’s yield on cost increases greatly over time as the dividend is steadily increased. This compounding works the best when looking at stocks with very high rates of dividend growth, preferably at least 10% annually. But not many companies can afford to boost their payouts at such a high rate. Here are 3 dividend stocks to buy for 10%-plus annual dividend growth: Nike (NYSE:NKE), Microsoft (NASDAQ:MSFT) and Lowe’s Companies (NYSE:LOW).

Source: Investor Place

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