Investors usually focus on stocks that already have stellar dividend yields, but your portfolio could also benefit from dividend growers. There are companies with solid fundamentals with a history of growing their dividends annually by over 10%. The stocks I will be looking at today have a dividend growth rate (per share) of above 10%, and analysts also expect dividend growth rates to be above that level in the future.
The main appeal is not the current dividend itself, but rather the compounding potential. The rule of 72 means a 10% dividend growth rate would double dividends every 7.2 years. If you are looking to invest for decades, it’s worthwhile to consider those deals. Here are three to look into.
This post originally appeared at 24/7 Wall St.