2 Underrated Dividend Stocks That Are Aristocrats in the Making
Risk-averse income investors often like to focus on stocks with solid track records for paying and increasing dividend payments. But some of the most promising dividend growth stocks are the ones that don't have long streaks of dividend increases yet. That doesn't mean they aren't good income stocks to own, and overlooking them could be a mistake.
Two dividend stocks that have been growing their dividend payments in recent years and could one day become Dividend Aristocrats are Humana (NYSE: HUM) and Microsoft (NASDAQ: MSFT). They don't pay high yields, but here's why dividend investors should consider them anyway.
Health insurance company Humana currently pays a dividend yield of just 0.7%. It's a low payout (the S&P 500 average is 1.8%), and with interest rates on the rise, you might even earn more of a return by putting the money in a savings account with a local bank. But for long-term income investors, what makes the stock attractive is its potential for dividend growth in the future.
Source Fool.com
