Morningstar’s Investing Insights podcast recently spotlighted four S&P 500 stocks that have already declared dividend increases of 10% or more, effectively locking in their place on next year’s Dividend Growers screen, which requires companies to grow dividends at least 10% annually.
The host’s framing was simple: “Dividends are paid out from earnings. So companies that are able to increase their dividends at a high ongoing rate are quality companies with growing earnings.” Defensive investors also like the category because dividend growers tend to strike a balance between the dividend income high-yielders offer and the earnings growth driven by earnings reinvestment that lower-yielding companies tend to provide.
Here are four Dividend Growers that have already declared 10% dividend increases for next year.
This post originally appeared at 24/7 Wall St.