Why Applied Materials Is Destined to Be a Magnificent Dividend Growth Stock

The beauty of long-term investing is how much one can potentially get paid from an investment decades into the future. So, for those in their early to mid-adulthood, it's not too early to think about income streams for retirement 20, 30, or 40 years from now when choosing stocks today.

One of the best ways to accomplish a healthy retirement is by investing in dividend growth stocks. These stocks may not impress in terms of their current dividend yield, but if a stock can grow its payout above the rate of inflation for many years, the power of compounding can make for a comfortable retirement indeed.

Semiconductor equipment player Applied Materials (NASDAQ: AMAT) has just a 0.7% yield today. But for those with a long time horizon, there are lots of reasons to think those payouts will be massively larger five, 10, and 20 years or longer from now.

Continue reading


Source Fool.com