In this lackluster market, it's tough to find decent income. Look no further! Here are three income-generating gems that will hike their payouts.
Utility stocks are known to be classic defensive plays when everything is going wrong in world markets.
With skittish stock markets around the world, a weak U.S. jobs report in April and unpredictability ruling the energy market, there is a cloud of uncertainty on future interest rate hikes by the U.S. Federal Reserve.
This situation bodes perfectly well for utility companies as their stocks provide better yields than government securities, as well as capital protection. The sector is considered one of the safest in the equity market and is well suited for retirement investing. The strength in the sector is evident by the performance of a widely followed exchange-traded fund that tracks it: Utilities Select Sector SPDR Fund (XLU) . This ETF has gained 14% so far in 2016.
For income investors to profit from this trend, we've pinpointed three stocks that have plenty of momentum left and can grow dividends further…