January 9, 2018

7 Dividend Growth Stocks Worth Owning


Do you invest in dividend growth stocks? If you don’t, you ought to consider doing so. These dividend stocks to buy could be your ticket to a better retirement.

Many dividend investors get caught up focusing on yield when the growth is what’s truly important. By utilizing the power of compound interest, investors can achieve higher returns by merely owning the stocks of companies who regularly hike their dividends.

A Canadian finance site, Hardbacon, provides an excellent example why investing in dividend growth stocks is a sound idea:

“If you invest in a stock which pays $1 in dividends a year and costs $25, it means it yields 4% at the time you buy it (dividend yield on cost),” wrote Sam Kovacs. “If the company increases its dividend 10 cents every year, in 10 years those same stocks which you bought for $25 will be paying out $2 in dividends, an outstanding 8% yield on cost.”

That’s the power of income-growth stocks. Here are seven dividend stocks to buy that are worth owning. If that’s not enough to get your mouth salivating, each has hiked its dividends in 2017 by 20% or more!





2 comments:

  1. Great article!
    I like thinking like that actually. All the stocks I pay for today will most probably have a higher value in the furute, tho the dividens payed should be much greater.

    ReplyDelete
  2. I did not know CAKE was a dividend growth stock. I did a little bit of research and it has been paying dividends since 2012. Pretty short dividend history but the raises every year since have been in the double digits which warrants a deeper look. Thanks for bringing to this to my attention

    ReplyDelete