Sure Dividend: 4 Consistently High Paying Dividend Stocks With Growth Potential
Market declines are solid opportunities for investors to refocus on great companies with strong fundamentals. Such companies also tend to pay out solid dividends.
But there’s usually a trade-off with dividends. Higher current yields tend to mean less cash is reinvested in the business for future growth. That keeps a lid on share price appreciation. Ideally, an investor will want to find companies that can grow and also grow their dividend payouts.
This combination is hard to find, for a number of reasons. Years of low interest rates likely pushed many income investors into dividend stocks in general. And that raised prices on those stocks, which lowered yields.
Currently, only 65 companies are even dividend aristocrats, defined as S&P 500 companies that have raised their dividends for at least 25 consecutive years.
A few of those companies have the potential to not only continue raising their dividends, but also see above-average growth in the years ahead.
One such example is electronics retailer Best Buy (BBY). While sales have slid in the short-term, the company’s ongoing growth and dividend payout increases give it the right blend for investors today. Those looking for income now and a growth kicker when markets turn around would be well-served by this company.