The
U.S. interest rates are at historic lows and, at best, only modest interest
rate increases can be expected next year. As such, there is hardly any option
for income investors.
With Bonds and Treasury bills yielding less than 2%
over a 1-5 year time horizon, stocks with assured dividend growth are perhaps
one of the few bright spots for investors.
As even the most imprudent investor knows, dividend
stocks are historically less volatile than non-dividend stocks and are proven
outperformers over the long term.
These stocks are a safe bet to create wealth as
dividends generally act as a hedge against economic uncertainty. Moreover,
these stocks provide downside protection by offering sizable yields on a
regular basis.
A lot of investors
consider dividend-paying companies as "boring." Weighed against the
high-flying small cap companies, whose volatility seems to excite them,
dividend-paying stocks are typically more mature and conventional. Although
this may be uninteresting for some, the combination of a consistent dividend
payout and dividend growth can be something to get excited about.
Below I've attached some good looking stocks that have
grown dividends in the recent 5 years by more than 35 percent and having a current
strong buy or buy rating.
Here are the results: