Dividends are so important for
income investors, especially when you reinvest all of your fresh dividend
payment to fund new stock positions.
Overall, dividends
will provide about half the total returns for equity investors in the next
decade, that's a major guide each analyst tells you when we are discussing the
dividend growth strategies.
Today I like to
refer a great basket from Goldman Sachs, the Dividend Growth Basket. Each stock
of the list has a median yield of 2.5% and is expected to increase dividends by
16% in 2015 and 12% in 2016. The basket has a price-to-earnings ratio of 15 vs.
17.3 for the S&P.
That sounds very
interesting, right? Well let us look at the detailed results. Here are the best
picks from each industry. Which do you like?