3 Great Income Stocks That Could Double Their Dividends
Dividend stocks can be one of your biggest wealth-building investments, provided you choose the right stocks. By that, I mean you should avoid the most common mistake income investors make: Chasing high yields over dividend quality.
High yields do not necessarily make a dividend stock great, as a dividend yield is simply a function of a stock's price, which can fluctuate. On the other hand, stocks that consistently grow their dividends often turn out to be the best dividend stocks in the long run in terms of total shareholder returns. In fact, you'd be stunned to know that some really low-yielding stocks have doubled their dividends in just about five years, and that's added more to the returns of patient shareholders than you might guess. If you don't believe me, check out the track records of these three incredible dividend growth stocks and why they could double their dividends over the next few years.
Home Depot (NYSE: HD) started growing its dividend only after 2010. Yet Home Depot has increased its dividend at such a lightning pace since then, forget about doubling... its quarterly dividend payout has jumped almost sevenfold since 2010! That includes an exceptional year 2019 when the company paid 32% higher dividends over 2018, but there's no denying Home Depot has emerged as one of the strongest dividend growth stocks in recent years.
Source Fool.com
