Dividends4Life: 3 Dividend Stocks to Play the Taper (for Fast 61%+ Gains)

Goldman Sachs says the Fed will start cutting its bond purchases next month--and that sets up some of our favorite dividend-payers for a quick 61% profit surge. Banks profit from the spread between the 10-year rate (benchmark for the loans they make to consumers) and the Fed's overnight rate (at which banks lend to one another). That brings us to our first "61% profit play...

KeyCorp. (KEY), with 1,000 branches in Ohio and New York. KEY starts us with a 3.3% yield, then doubles down with payout growth of 517% over the last decade. In other words, if you bought KeyCorp 10 years ago, you'd be yielding a hefty 9.4% now! You may remember Prudential Financial (PRU) for its 1970s slogan "Get a piece of the rock." Today, that best describes PRU's dividend: it's the rare stock with a high current yield, at 4.2%, and fast dividend growth, too. Life insurer Lincoln National (LNC) sports a lower yield than PRU, at 2.4%, but that's just the start. Over the last decade, LNC's payout has skyrocketed 425%, boosting the yield on a buy made then to 9.1% today.

Source: NASDAQ

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