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7 Stocks With ‘Tax Cut’ Dividend Increases on Tap

Congress and President Donald Trump passed a historic tax cut late last year, lowering the corporate tax rate from 35% to 21%. This monumental legislation should place hundreds of billions of dollars back in the hands of corporations. But which companies will put these dollars in the hands of investors as dividend increases?

Some companies will use the money saved — or repatriated from overseas — to reinvest in their businesses. Comcast Corporation (NASDAQ:CMCSA), for example, will invest $50 billion into infrastructure in the coming years.

Other companies will use the money to repurchase stock. Regrettably, those stocks are very overvalued right now.

Many companies, however, will boost their dividends to reward shareholders. This will be particularly true of companies that are already cash flow positive and are struggling to grow or would struggle anyway just given their business.

Here are seven likely candidates for dividend increases.

Dividend Increases: Apple (AAPL) Apple Inc. (AAPL)investorplace.com/wp-content/uploads/2016/05/aaplmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/05/aaplmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/05/aaplmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/05/aaplmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/05/aaplmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/05/aaplmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/05/aaplmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/05/aaplmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/05/aaplmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” /> Source: via Apple

Apple Inc. (NASDAQ:AAPL) will be one of the big winners in the tax cut game. For starters, it should be able to repatriate about $215 billion. It will also save about $2.2 billion in taxes. Now, Apple not only will have all that cash on hand, it also has free cash flow in excess of $50 billion.

What’s interesting about AAPL stock is the yield is only 1.49%, based on a $2.52 per share dividend. Apple could literally afford to plow the entire tax savings into an increased dividend — boosting it by $0.44 per share — to $2.96 per share or 1.72%.

Dividend Increases: Home Depot (HD) Why HD Stock Is Finally Too Expensiveinvestorplace.com/wp-content/uploads/2016/05/hdmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/05/hdmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/05/hdmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/05/hdmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/05/hdmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/05/hdmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/05/hdmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/05/hdmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/05/hdmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” /> Source: Mike Mozart via Flickr (Modified)

Home Depot Inc (NYSE:HD) is another huge winner in the corporate tax cut parade. HD will save close to $675 million annually.

The beauty of Home Depot is that the company is currently firing on all cylinders. They’re seeing fabulous same-store comps. And their current dividend payout is presently a mere 40% of free cash flow.

Home Depot can and should plow their entire tax savings into a dividend increase of $0.65 per share, lifting the dividend from $3.56 to $4.21 per share. That would push the yield from 1.88% to 2.22%.

Dividend Increases: Pfizer (PFE) PFE Stockinvestorplace.com/wp-content/uploads/2017/10/pfemsn-300×150.jpg 300w, investorplace.com/wp-content/uploads/2017/10/pfemsn-768×384.jpg 768w, investorplace.com/wp-content/uploads/2017/10/pfemsn-60×30.jpg 60w, investorplace.com/wp-content/uploads/2017/10/pfemsn-200×100.jpg 200w, investorplace.com/wp-content/uploads/2017/10/pfemsn-400×200.jpg 400w, investorplace.com/wp-content/uploads/2017/10/pfemsn-116×58.jpg 116w, investorplace.com/wp-content/uploads/2017/10/pfemsn-100×50.jpg 100w, investorplace.com/wp-content/uploads/2017/10/pfemsn-78×39.jpg 78w, investorplace.com/wp-content/uploads/2017/10/pfemsn-800×400.jpg 800w,https://investorplace.com/wp-content/uploads/2017/10/pfemsn-170×85.jpg 170w” sizes=”(max-width: 950px) 100vw, 950px” /> Source: Shutterstock

Pfizer Inc. (NYSE:PFE) stands to save about $150 million annually. As a big pharma company, Pfizer must continually feed its R&D machine. R&D routinely costs about $7.5 – $8.5 billion annually, yet that money comes out of its extremely robust free cash flow which runs $13 – 16 billion annually.

Figure a $.025 dividend increase on top of its already annual increase, which results in a small increase in yield from 3.75% to 3.77%. Not big, but a lot of retirement investors hold PFE stock.

Dividend Increases: Cisco (CSCO) investorplace.com/wp-content/uploads/2017/05/cscomsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/cscomsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/cscomsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/cscomsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/cscomsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/cscomsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/cscomsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/cscomsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/cscomsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/05/cscomsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” /> Source: Shutterstock

Cisco Systems, Inc. (NASDAQ:CSCO) has fallen into no/slow-growth territory with net income effectively stalling over the past couple of years. Nevertheless, CSCO stock generates about $13 billion annually in free cash flow. That’s pretty amazing, so the additional $350 million in tax savings would likely all go to increasing the dividend.

The $.07 per share increase would push the dividend from $1.16 per share to $1.23 per share, lifting the yield from 3.03% to 3.14%.

Dividend Increases: Coca-Cola (KO) The Coca-Cola Co KO stockinvestorplace.com/wp-content/uploads/2016/06/komsn2-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/06/komsn2-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/06/komsn2-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/06/komsn2-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/06/komsn2-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/06/komsn2-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/06/komsn2-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/06/komsn2-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/06/komsn2-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” /> Source: Leo Hidalgo via Flickr (Modified)

The Coca-Cola Co (NYSE:KO) has really been struggling the past few years. The world moved away from sugary drinks and toward healthier choices. Revenue is falling, as is net income.

Nevertheless, KO stock has enjoyed bountiful cash flow for decades and has almost $40 billion of cash on hand. So while business is struggling, much of the $220 million in tax savings may go to either stock repurchases or dividend increases.

If the latter, that means a $0.05 per share increase to $1.53 per share, boosting the yield from 3.23% to 3.36%.

Dividend Increases: Microsoft (MSFT) Why You Should Buy Microsoft Corporation (MSFT) Stock on the Dipinvestorplace.com/wp-content/uploads/2016/03/MSFTMSN-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/03/MSFTMSN-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/03/MSFTMSN-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/03/MSFTMSN-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/03/MSFTMSN-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/03/MSFTMSN-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/03/MSFTMSN-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/03/MSFTMSN-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/03/MSFTMSN-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2016/03/MSFTMSN-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/03/MSFTMSN-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/03/MSFTMSN-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” /> Source: Mike Mozart Via Flickr

Microsoft Corporation (NASDAQ:MSFT) will win big with the tax cut as well. Because Microsoft is finally growing earnings again, but has tons of cash and cash flow, there is no need to plow the tax savings into the business.

MSFT can also start to make big strides towards becoming an income stock. Get this — before the cut, MSFT generated $30 billion in free cash flow last year, and paid out only $11.8 billion in dividends.

Tax savings could push another $0.04 per share into the dividend, lifting it to $1.72 per share.

Dividend Increases: Boeing (BA) Boeing BA stockinvestorplace.com/wp-content/uploads/2016/04/bamsn-1-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/bamsn-1-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/bamsn-1-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/bamsn-1-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/bamsn-1-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/bamsn-1-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/bamsn-1-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/bamsn-1-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/bamsn-1-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2016/04/bamsn-1-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/04/bamsn-1-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/bamsn-1-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” /> Source: Phillip Capper via Flickr

Boeing Co (NYSE:BA) is another widely-held stock that’s in a sweet-spot as far as how to use its tax windfall. They aren’t saving an enormous chunk of money — about $93 million — but that still translates to a $0.16 per share dividend increase.

That would push the dividend right up to $7 per share, lifting the yield from 2.32% to 2.34%.

Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance and is the Manager of The Liberty Portfolio at www.thelibertyportfolio.com. He does not own any stock mentioned. He has 23 years’ experience in the stock market, and has written more than 1,800 articles on investing. Lawrence Meyers can be reached at TheLibertyPortfolio@gmail.com.

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Amazon.com, Inc. Stock Deserves to Be in Your Portfolio

For traditional investors, whether growth or value, Amazon.com Inc. (NASDAQ:AMZN) has always presented a hair-raising problem: Amazon stock does not conform to traditional valuation metrics.

Although I might take a stab by valuing it on an operational cash flow basis and compare it to businesses that John Malone has run — for which that was the only way to properly value them — I’m not convinced that would yield any useful results.

Amazon Is Unique

I never want to say, “It’s different this time,” but with Amazon stock I think it is. AMZN hasn’t been able to be valued traditionally for more than twenty years, so, at this point, I don’t think there’s much point in trying.

What we know is that if Jeff Bezos wanted Amazon stock to offer consistency in delivering net profits, he could make it happen. All he’d have to do is slow down growth in places like international sales, which is a money loser, and even cut back on operating expenses for global sales, and deliver a profit.

For the first nine months of 2017, Amazon had North American net sales of $68.8 billion and $67.6 billion in expenses, generating a $1.14 billion profit. Internationally, $36.26 billion in sales was offset by $38.4 billion in expenses for a net loss of $2.14 billion. AWS saw $12.3 billion in sales, offset by $9.37 billion in expenses, for a profit of $2.98 billion. The bottom line for net income came in at $1.18 billion.

But Bezos continually reinvests everything into the company. So, with Amazon stock, it comes down to effectively investing on a leap of faith — faith that the market will always find some form of value in Amazon. However, because it cannot be valued in any relative sense, it means one must either trade Amazon or buy and hold it for the very long term.

So, does that make sense? Yes and no, and it depends on the type of investor you are.

How and Why You Should Invest in Amazon Stock

Here’s the affirmative side of the answer. What we know is that Amazon is muscling its way into all kinds of territories. Yet, it is of particular significance that Amazon stock is ascending not merely because of momentum, but because investors sense that the future of retail rests with Amazon. Not all retail, but much of it.

I know that I purchase 80-90% of my non-food items at Amazon. I will price compare now and again, but Amazon wins that battle 95% of the time — or wins in a tie because I’m a Prime member. Convenience and reliability mean a lot to the retail shopper, not to mention the time savings.

I can imagine a time where small businesses are going to have to be niche-oriented, or deliver something special in order to even have a chance against Amazon. Only bulk retail providers like Costco Inc. (NASDAQ:COST) will stand a chance, because shopping at Costco is an experience and prices are comparable. Or home improvement companies like Home Depot, Inc. (NYSE:HD), which don’t appear to have suffered.

Bottom Line on AMZN Stock

So I think, as an investor, you have to own Amazon stock at some point.

I am not convinced that now is the time, because the market is some 30% overvalued and the second-most expensive in history.

I think the play is to buy Amazon stock in increments, beginning at a 10% correction point, and adding every time it ticks down by 5% or more.

Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance and is the Manager of The Liberty Portfolio at www.thelibertyportfolio.com. He does not own any stock mentioned. He has 23 years’ experience in the stock market, and has written more than 1,800 articles on investing. Lawrence Meyers can be reached at TheLibertyPortfolio@gmail.com.


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5 Dow Titans Going Vertical

U.S. equities are pushing higher on Thursday as investors celebrate the passage of the GOP’s tax reform bill, look ahead to the holiday-shortened week next week and take in all the positive end-of-year vibes.

The stock market is on the verge of posting the first “perfect year” ever with 12 consecutive monthly rises.

While a lot of good news has been priced into stocks already, there is obviously further upside as investors prepare for earnings repatriation, increased earnings power and larger paychecks for millions of Americans.

Here are five blue-chip titans that are surging in response: 

Dow Stocks to Buy: Apple (AAPL)

Dow Stocks to Buy: Apple (AAPL)investorplace.com/wp-content/uploads/2017/12/aapl122117-300×248.png 300w, investorplace.com/wp-content/uploads/2017/12/aapl122117-36×30.png 36w, investorplace.com/wp-content/uploads/2017/12/aapl122117-200×165.png 200w, investorplace.com/wp-content/uploads/2017/12/aapl122117-364×300.png 364w, investorplace.com/wp-content/uploads/2017/12/aapl122117-116×96.png 116w, investorplace.com/wp-content/uploads/2017/12/aapl122117-100×83.png 100w, investorplace.com/wp-content/uploads/2017/12/aapl122117-152×125.png 152w, investorplace.com/wp-content/uploads/2017/12/aapl122117-61×50.png 61w, investorplace.com/wp-content/uploads/2017/12/aapl122117-78×64.png78w, investorplace.com/wp-content/uploads/2017/12/aapl122117-145×120.png 145w” sizes=”(max-width: 520px) 100vw, 520px” />

Apple Inc. (NASDAQ:AAPL) shares look ready to rise out of a two-month consolidation range as the iPhone X supply stabilizes and investors look ahead to fresh catalysts like the launch of the HomePod speaker and the iMac Pro. There has been some analyst chatter of potentially underwhelming iPhone X demand, but that’s hard to see with delivery times only now catching up to requests.

The company will next report earnings on Jan. 30 after the close. Analysts are looking for earnings of $3.77 per share on revenues of $86.3 billion. When the company last reported on Nov. 2, earnings of $2.07 beat estimates by 20 cents on a 12.2% rise in revenues.

Dow Stocks to Buy: Caterpillar (CAT)

Dow Stocks to Buy: Caterpillar (CAT)investorplace.com/wp-content/uploads/2017/12/cat122117-300×248.png 300w, investorplace.com/wp-content/uploads/2017/12/cat122117-36×30.png 36w, investorplace.com/wp-content/uploads/2017/12/cat122117-200×165.png 200w, investorplace.com/wp-content/uploads/2017/12/cat122117-364×300.png 364w, investorplace.com/wp-content/uploads/2017/12/cat122117-116×96.png 116w, investorplace.com/wp-content/uploads/2017/12/cat122117-100×83.png 100w, investorplace.com/wp-content/uploads/2017/12/cat122117-152×125.png 152w, investorplace.com/wp-content/uploads/2017/12/cat122117-61×50.png 61w, investorplace.com/wp-content/uploads/2017/12/cat122117-78×64.png 78w,https://investorplace.com/wp-content/uploads/2017/12/cat122117-145×120.png 145w” sizes=”(max-width: 520px) 100vw, 520px” />

Caterpillar Inc. (NYSE:CAT) shares are going parabolic now, exploding out of the short consolidation rate between October and November to hit new highs representing a 3x gain from its early 2016 lows. Analysts at Citigroup recently upgraded their price target to $160 from $145.

The company will next report results on Jan. 25 before the bell. Analysts are looking for earnings of $1.75 per share on revenues of nearly $12 billion.

When the company last reported on Oct. 24, earnings of $1.95 beat estimates by 68 cents on a 24.6% rise in revenues.

Dow Stocks to Buy: Chevron (CVX)

Dow Stocks to Buy: Chevron (CVX)investorplace.com/wp-content/uploads/2017/12/cvs122117-300×248.png 300w, investorplace.com/wp-content/uploads/2017/12/cvs122117-36×30.png 36w, investorplace.com/wp-content/uploads/2017/12/cvs122117-200×165.png 200w, investorplace.com/wp-content/uploads/2017/12/cvs122117-364×300.png 364w, investorplace.com/wp-content/uploads/2017/12/cvs122117-116×96.png 116w, investorplace.com/wp-content/uploads/2017/12/cvs122117-100×83.png 100w, investorplace.com/wp-content/uploads/2017/12/cvs122117-152×125.png 152w, investorplace.com/wp-content/uploads/2017/12/cvs122117-61×50.png 61w, investorplace.com/wp-content/uploads/2017/12/cvs122117-78×64.png 78w,https://investorplace.com/wp-content/uploads/2017/12/cvs122117-145×120.png 145w” sizes=”(max-width: 520px) 100vw, 520px” />

Chevron Corporation (NYSE:CVX) shares are launching higher on Thursday, up 3.3% to jump over resistance near $120 going back to the summer of 2014. Not only has the stock completely erased the 2014-2015 drop related to the fall in crude oil prices, but it has more than doubled from its lows to reach new records. Analysts at Cowen raised their price target to $160, citing the performance of the company’s operations in the Permian Basin.

The company will next report results on Jan. 26 before the bell. Analysts are looking for earnings of $1.25 per share on revenues of $38.59 billion. When the company last reported on Oct. 27, earnings of $1.03 beat estimates by six cents on a 20.1% rise in revenues.

Dow Stocks to Buy: Goldman Sachs (GS)

 Dow Stocks to Buy: Goldman Sachs (GS)investorplace.com/wp-content/uploads/2017/12/gs122117-300×248.png 300w, investorplace.com/wp-content/uploads/2017/12/gs122117-36×30.png 36w, investorplace.com/wp-content/uploads/2017/12/gs122117-200×165.png 200w, investorplace.com/wp-content/uploads/2017/12/gs122117-364×300.png 364w, investorplace.com/wp-content/uploads/2017/12/gs122117-116×96.png 116w, investorplace.com/wp-content/uploads/2017/12/gs122117-100×83.png 100w, investorplace.com/wp-content/uploads/2017/12/gs122117-152×125.png 152w, investorplace.com/wp-content/uploads/2017/12/gs122117-61×50.png 61w, investorplace.com/wp-content/uploads/2017/12/gs122117-78×64.png 78w,https://investorplace.com/wp-content/uploads/2017/12/gs122117-145×120.png 145w” sizes=”(max-width: 520px) 100vw, 520px” />

Goldman Sachs Group Inc (NYSE:GS) shares are pushing to new highs, rising further out of its October-November consolidation range, eclipsing the highs seen earlier this year near $255. The stock will benefit from the maintaining of the carried interest loophole and likely positive impact the tax legislation will have on capital markets activity as foreign earnings are brought back home (stock buybacks, dividends, etc.).

The company will next report earnings on Jan. 17 before the bell. Analysts are looking for earnings of $5.16 per share on revenues of $7.8 billion.

When the company last reported on Oct. 17, earnings of $5.02 per share beat estimates by 85 cents on a 2% rise in revenues.

Dow Stocks to Buy: Home Depot (HD)

Dow Stocks to Buy: Home Depot (HD)investorplace.com/wp-content/uploads/2017/12/122117hd-300×248.png 300w, investorplace.com/wp-content/uploads/2017/12/122117hd-36×30.png 36w, investorplace.com/wp-content/uploads/2017/12/122117hd-200×165.png 200w, investorplace.com/wp-content/uploads/2017/12/122117hd-364×300.png 364w, investorplace.com/wp-content/uploads/2017/12/122117hd-116×96.png 116w, investorplace.com/wp-content/uploads/2017/12/122117hd-100×83.png 100w, investorplace.com/wp-content/uploads/2017/12/122117hd-152×125.png 152w, investorplace.com/wp-content/uploads/2017/12/122117hd-61×50.png 61w, investorplace.com/wp-content/uploads/2017/12/122117hd-78×64.png 78w,https://investorplace.com/wp-content/uploads/2017/12/122117hd-145×120.png 145w” sizes=”(max-width: 520px) 100vw, 520px” />

Home Depot Inc (NYSE:HD) shares are extending higher, rising over their early December highs to cap a gain of more than 15% from their early November lows. A combination of solid home construction activity, limited supply and hurricane rebuilding are creating a perfect storm for investors.

The company will next report results on Feb. 20 before the bell. Analysts are looking for earnings of $1.62 per share on revenues of $23.6 billion. When the company last reported on Nov. 14, earnings of $1.84 per share beat estimates by two cents on an 8.1% rise in revenues.

Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

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learn day trading

When Andy Hawk needed hernia surgery last year, his biggest worry wasn’t the operation’s cost but whether he’d heal in time to lead a spring bear-hunting expedition on Kodiak Island.

For the first time, the self-employed gunsmith in the state with the nation’s highest medical costs and most volatile insurance market had some protection. He had coverage for all but $10,000 of the $45,000 tab.

“Before that, I was just damn lucky,” said Hawk, 52, who joined the Affordable Care Act marketplace in 2013.

Hawk was relieved last month when Republican leaders in Washington hastily withdrew a House bill to replace parts of the ACA. The legislation’s failure left the health care law intact while the GOP regroups on how to address rising insurance costs.

The issue is particularly acute in Alaska, the fourth most expensive state in the U.S., where a standard knee replacement may cost five times what it does in Seattle and pricey air ambulance rides are common in emergencies.

learn day trading: Energy Transfer Equity, L.P.(ETE)

Advisors’ Opinion:

  • [By Charles Sizemore]

     Charles Sizemore is a prolific financial writer, longtime prizedInvestorPlace contributor, and chief investment officer of Sizemore Capital Management. He’s also a two-time winner of our Best Stockscompetition, so he knows how to pick ‘em.

    Never one to choose a straightforward company, Charles went withEnergy Transfer Equity (ETE) for the Best Stocks for 2016 contest. ETE is a complicated beast, a master limited partnership that’s made up of six other energy companies.

    Perhaps the simplest way to think of ETE is as a company with diversified exposure to energy pipelines, which essentially collect tolls as their corporate users send oil and natural gas all across the country.

    Energy Transfer is thick on the income front, with a dividend yield sitting at 8.7% currently.

learn day trading: Visteon Corporation(VC)

Advisors’ Opinion:


    Visteon (VC) : “You need to let this one come down a little, then pull the trigger.”

    American Tower (AMT) : “This is the best in the business and is worth owning, even if the chart looks terrible.”


    For the details of Solus Alternative Asset Management LP’s stock buys and sells, go to www.gurufocus.com/StockBuy.php?GuruName=Solus+Alternative+Asset+Management+LP

    These are the top 5 holdings of Solus Alternative Asset Management LPC&J Energy Services Inc (CJ) – 7,553,128 shares, 48.21% of the total portfolio. Loral Space & Communications Inc (LORL) – 1,936,891 shares, 14.99% of the total portfolio. Shares reduced by 0.57%Visteon Corp (VC) – 633,018 shares, 12.03% of the total portfolio. Shares reduced by 22.88%Peabody Energy Corp (BTU) – 2,160,564 shares, 9.84% of the total portfolio. New PositionDynegy Inc (DYN) – 3,022,583 shares, 4.66%

learn day trading: Capricor Therapeutics, Inc.(CAPR)

Advisors’ Opinion:

  • [By Lisa Levin] Gainers
    Marathon Patent Group Inc (NASDAQ: MARA) shares surged 30.2 percent to $5.01 after dropping 40.86 percent on Tuesday. Marathon Patent Group filed for sale of 1.85 million shares of common stock by selling stockholders.
    Capricor Therapeutics Inc (NASDAQ: CAPR) shares jumped 17.2 percent to $2.25 after the company reported the FDA clearance of Investigational New Drug application for CAP-1002.
    Rite Aid Corporation (NYSE: RAD) gained 13.2 percent to $2.15 following 16.5 percent rally on Tuesday.
    Photronics, Inc. (NASDAQ: PLAB) shares climbed 11.8 percent to $10.45 after the company reported stronger-than-expected earnings for its fourth quarter.
    China Distance Education Hldgs Ltd (ADR) (NYSE: DL) shares surged 11.3 percent to $8.67. China Distance Education reported Q4 profit of $5.9 million on revenue of $41.7 million.
    Cytokinetics, Inc. (NASDAQ: CYTK) shares gained 11 percent to $8.05 after falling 7.05 percent on Tuesday.
    Ooma Inc (NYSE: OOMA) shares surged 8.5 percent to $10.85 as the company posted strong Q3 results.
    Nuance Communications Inc. (NASDAQ: NUAN) climbed 8 percent to $17.12 after the company reported stronger-than-expected results for its fourth quarter on Tuesday.
    American Superconductor Corporation (NASDAQ: AMSC) surged 7.8 percent to $3.59 after the company reported $8 million in D-VAR system orders.
    Thermon Group Holdings Inc (NYSE: THR) rose 6.3 percent to $24.17. William Blair upgraded Thermon Group from Market Perform to Outperform.
    Domino's Pizza, Inc. (NYSE: DPZ) surged 6.1 percent to $182.88. Nomura upgraded Domino's from Neutral to Buy.
    Xencor Inc (NASDAQ: XNCR) rose 5.9 percent to $21.17. Cantor Fitzgerald initiated coverage on Xencor with an Overweight rating.
    Idera Pharmaceuticals Inc (NASDAQ: IDRA) gained 5.1 percent to $2.28 after the company disclosed that it has been granted FDA Fast Track designation for IMO-2125.
    Regal Entertainment Group (NYSE: RGC) gained 5.1 percent to

learn day trading: Home Depot, Inc. (The)(HD)

Advisors’ Opinion:

  • [By Craig Jones]

    Pete Najarian noticed a big trade in Home Depot Inc (NYSE: HD). He said that somebody bought between 12,000 and 15,000 contracts of the February 140 calls and he decided to take a long position too. Instead of buying call options, Pete Najarian bought stocks, because he wants to take a long-term position.


    Position: Long GLD small, bonds, SDS; short TLT small, SPY small .

  • [By Craig Jones]

    Mike Khouw spoke on CNBC's Options Action about unusually high call options activity in Home Depot Inc (NYSE: HD). The company is going to report earnings on Tuesday and it moves on average 2.8 percent on the event. The options market is currently implying a move of 2.4 percent.

  • [By Jon C. Ogg]

    Shares of Home Depot Inc. (NYSE: HD) were up 1.4% at $168.06 after beating earnings expectations. The initial take, based on the trading reaction, was that good might not be good enough. The take from the day-after confirms the initial take as shares were down more than 1% the following day.

  • [By Peter Graham]

    A long term performance chart for Lumber Liquidators Holdings sort of stabilizing over the past two years while large capsThe Home Depot, Inc (NYSE: HD)and Lowe’s Companies, Inc (NYSE: LOW) have been more steady performers:

learn day trading: Ryder System Inc.(R)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Ryder System (R) tumbled to the bottom of the S&P 500 today after it missed earnings forecasts and cut its full-year guidance.

    Getty Images

    Ryder Systemdropped 14% to $68.28 today, while the S&P 500 0.6% to 2,388.61

    Ryder Systems reported a profit of 82 cents a share, missing forecasts for 84 cents, on sales of $1.75 billion, ahead of forecasts for $1.7 billion. Ryder cut its 2017 guidance to a range of $4.25 to $4.55, below the Street consensus for $5.17.

    Ryder System’s market capitalization fell to $3.7 billion today from $4.2 billion yesterday.

10 Can’t-Miss Dividend Growth Stocks for 2018

Dividend growth stocks have obvious appeal. After all, dividend investing is based on buying and holding a stock for the payouts. So if a company can consistently increase its distributions to investors over time, all the better.

Unlike traditional growth investing, where you depend on a stock increasing in value based on profits or sales trends, dividend investing focuses on the payouts above all else. The best dividend stocks to buy offer regular deposits into your bank account, but the best dividend stocks are committed to making those paychecks larger every year.

Think of it this way: If you pay $40 a share and get a $1 annual dividend, you have a 2.5% yield on your investment. But if that payout increases to $1.40 annually after a few years your yield is now 3.5% based on your cost to buy the stock … and if the income growth continues to $1.80 annually, you’re now making 4.5% yield. And all by keeping your money in the same place and depending on bigger payouts!

That’s the power of dividend growth investing in 2018. Not only are you getting a stable return on your initial investment, but your payouts continue to increase over time.

So what are some of the most impressive income-growing plays on Wall Street as we enter 2018? Here are 10 to consider:

Dividend Growth Stocks: CVS (CVS)investorplace.com/wp-content/uploads/2016/05/cvsmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/05/cvsmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/05/cvsmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/05/cvsmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/05/cvsmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/05/cvsmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/05/cvsmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/05/cvsmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/05/cvsmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Mike Mozart via Flickr
Dividend Growth Stocks: CVS Current Yield: 2.8% 10-Year Dividend Growth: 733%

If you think CVS Health Corp (NYSE:CVS) is just a drug store filling prescriptions and selling candy bars, you don’t understand the business fully. Beyond its 9,700 retail locations in the U.S., it operates 1,100 walk-in healthcare clinics and runs a massive pharmacy benefits business serving more than 1 million patients per year, as well as offering a lucrative Medicare Part D prescription drug plan.

In fact, its pharmacy benefit management solutions segment accounts for almost 60% of total revenues. And the company is looking to move away from traditional retail pharmacies even more with a rumored buyout plan for diversified healthcare benefits company Aetna Inc. (NYSE:AET).

Like many healthcare-related dividend stocks, CVS also should benefit from an aging population in the U.S. And the healthcare business is relatively immune from fluctuations in the economic cycle, which provides a solid foundation for reliable dividend growth. That shows up in its impressive dividend history.

Dividend Growth Stocks: Ciscoinvestorplace.com/wp-content/uploads/2017/05/cscomsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/cscomsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/cscomsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/cscomsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/cscomsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/cscomsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/cscomsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/cscomsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/cscomsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/05/cscomsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock
Dividend Growth Stocks: Cisco Current Yield: 3% 10-Year Dividend Growth: 380%

In truth, Cisco Systems, Inc. (NASDAQ:CSCO) actually has 10-year dividend growth that is infinite because it didn’t pay out out a penny in dividends before 2011.

But after that initial payday of 6 cents a quarter, CSCO has rapidly ramped up its dividend growth to now pay 29 cents a share after a nearly 12% bump in payouts in early 2017.

When investors look for reliable dividend stocks, often they overlook the tech sector. But that’s a big mistake, as evidenced by Cisco. Not only does the IT giant currently yield a nice amount at present, but it has steadily increased payouts and is clearly committed to that trend.

And with that payout less than half of profits, CSCO stock has plenty of room to grow its dividend even more in the years ahead.

Dividend Growth Stocks: Home Depotinvestorplace.com/wp-content/uploads/2011/05/Home-Improvement-Home-Depot-1-300×198.jpg 300w, investorplace.com/wp-content/uploads/2011/05/Home-Improvement-Home-Depot-1-250×165.jpg 250w, investorplace.com/wp-content/uploads/2011/05/Home-Improvement-Home-Depot-1-200×132.jpg 200w, investorplace.com/wp-content/uploads/2011/05/Home-Improvement-Home-Depot-1-65×43.jpg 65w, investorplace.com/wp-content/uploads/2011/05/Home-Improvement-Home-Depot-1-100×66.jpg 100w, investorplace.com/wp-content/uploads/2011/05/Home-Improvement-Home-Depot-1-150×99.jpg 150w,https://investorplace.com/wp-content/uploads/2011/05/Home-Improvement-Home-Depot-1-120×80.jpg 120w” sizes=”(max-width: 630px) 100vw, 630px” />

Dividend Growth Stocks: Home Depot Current Yield: 2% 10-Year Dividend Growth: 295%

Home Depot Inc (NYSE:HD) may not have a particularly noteworthy yield at present, with its payouts just short of that found via 10-year Treasury bonds. But as the largest home improvement retailer in the U.S. and almost four decades of dominance in the industry, HD has been able to deliver powerful dividend growth to investors over time.

And with a strong brand, convenient store locations, a unique in-store shopping experience, growing digital operations and an expanding home improvement market, HD appears to be well-positioned for continued growth.

Home Depot has paid dividends for the past 29 years, raising its payout by an impressive 25% annual pace over the past five. Management last hiked the dividend by 29% earlier this year, and investors can expect strong growth going forward thanks to Home Depot’s safe payout ratio below 50% and outlook for continued earnings growth.

Dividend Growth Stocks: Texas Instrumentsinvestorplace.com/wp-content/uploads/2017/07/MSFTHoloLens2AIChipMSN-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/07/MSFTHoloLens2AIChipMSN-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/07/MSFTHoloLens2AIChipMSN-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/07/MSFTHoloLens2AIChipMSN-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/07/MSFTHoloLens2AIChipMSN-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/07/MSFTHoloLens2AIChipMSN-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/07/MSFTHoloLens2AIChipMSN-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2017/07/MSFTHoloLens2AIChipMSN-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/07/MSFTHoloLens2AIChipMSN-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/07/MSFTHoloLens2AIChipMSN-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Microsoft
Dividend Growth Stocks: Texas Instruments Current Yield: 2% 10-Year Dividend Growth: 161%

Texas Instruments Incorporated (NASDAQ:TXN) is a global semiconductor company that develops analog integrated circuits and embedded processors. Instead of chasing down fancy branded chips with exclusive uses, TXN made its name on the simpler analog chips that serve as the backbone for even the most basic of gadgets.

Of course, Texas Instruments may have sacrificed some margins there. But what it got in exchange was a reliable business and relationships with electronics designers and manufacturers worldwide.

It owns and operates semiconductor manufacturing facilities (wafer fabrication and assembly/test facilities) in North America, Asia, Japan and Europe. TXN also caters to many diversified markets like industrial (33% of total revenue), personal electronics (26%), automotive (18%) and communications (13%).

That adds up to a reliable revenue stream, allowing TXN to pay uninterrupted dividends since 1962. Dividend growth has been consistent, too, most recently with a 32% one-time hike doled out in late 2016 to mark the 13th consecutive year of larger dividends.

Dividend Growth Stocks: Starbucksinvestorplace.com/wp-content/uploads/2017/05/starbucks-corporation-sbux-coffee-msn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/starbucks-corporation-sbux-coffee-msn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/starbucks-corporation-sbux-coffee-msn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/starbucks-corporation-sbux-coffee-msn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/starbucks-corporation-sbux-coffee-msn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/starbucks-corporation-sbux-coffee-msn-116×64.jpg 116w,https://investorplace.com/wp-content/uploads/2017/05/starbucks-corporation-sbux-coffee-msn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/starbucks-corporation-sbux-coffee-msn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/starbucks-corporation-sbux-coffee-msn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/05/starbucks-corporation-sbux-coffee-msn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock
Dividend Growth Stocks: Starbucks Current Yield: 1.8% 10-Year Dividend Growth: 500%

In truth, Starbucks Corporation (NASDAQ:SBUX) didn’t offer regular distributions before 2010. But in that short time, it has ramped up payments from 5 cents to 25 cents in a serious effort to share its profits more directly with shareholders.

With more than four decades of experience selling coffee, Starbucks has become a leading, premium brand name in the industry. That gives it a dominance that results in reliable revenue — and reliable paydays for investors as a result.

The company sells coffee primarily under its flagship Starbucks Coffee brand as well as Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos brands. Starbucks is well-known for its prompt customer service and quality products.

SBUX last boosted its payout by 25% in late 2016, and with earnings per share expected to grow by double-digits annually and the company’s payout ratio below 50%, SBUX’s dividend should continue its impressive growth over the coming years.

Dividend Growth Stocks: Procter & Gambleinvestorplace.com/wp-content/uploads/2017/05/Gillette-msn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/Gillette-msn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/Gillette-msn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/Gillette-msn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/Gillette-msn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/Gillette-msn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/Gillette-msn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/Gillette-msn-91×50.jpg 91w,https://investorplace.com/wp-content/uploads/2017/05/Gillette-msn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/05/Gillette-msn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock
Dividend Growth Stocks: Procter & Gamble Current Yield: 3.1% 10-Year Dividend Growth: 97%

No dividend list would be complete without consumer products king Procter & Gamble Co (NYSE:PG). P&G stock yields more than 3% at present, and has increased its payouts for a simply amazing 60 consecutive years. Furthermore, it has roughly doubled its payouts over the past 10 years.

That’s saying something, considering the Great Recession of 2008 and 2009 caused many previously strong companies to reduce or altogether eliminate their payouts.

But P&G is as stable a corporation as they come, with a wide product portfolio that includes Pampers diapers, Tide laundry detergent, Charmin toilet paper and a host of other big brands that are staples of consumer cupboards.

With a strong history of payouts and current dividends at just two-thirds of earnings, that growth has a good chance of continuing as the company prospers.

Dividend Growth Stocks: Lowe'sinvestorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-300×168.jpg 300w, investorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-71×40.jpg 71w, investorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-53×30.jpg 53w, investorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-250×140.jpg 250w, investorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-200×112.jpg 200w,https://investorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-65×36.jpg 65w, investorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-100×56.jpg 100w, investorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-150×84.jpg 150w, investorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-142×80.jpg 142w, investorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-88×50.jpg 88w, investorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-78×43.jpg 78w, investorplace.com/wp-content/uploads/2014/08/Lowe_s_Scales_Back_Sales_Guidance_Despite_Earnings-170×95.jpg 170w” sizes=”(max-width: 640px) 100vw, 640px” />

Dividend Growth Stocks: Lowe’s Current Yield: 1.8% 10-Year Dividend Growth: 412%

Retail is a rough business these days, but as Home Depot showed already there is a safe haven for merchants in the home improvement space. And just like HD stock, Lowe’s Companies, Inc. (NYSE:LOW) is committed to sharing its success with stock holders via bigger dividends over time.

How committed? Well, back in 2007 it was paying 8 cents per quarter… and now, after a 17% hike to payouts in 2017, it’s paying 41 cents.

And with more than 50 consecutive years of increases, you can be sure that payout will rise even more in 2018 and beyond. As with HD the headline yield isn’t great, but the consistency is definitely worth paying attention to.


Dividend Growth Stocks: Hormelinvestorplace.com/wp-content/uploads/2016/04/hrlmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/hrlmsn-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/hrlmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/hrlmsn-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/hrlmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/hrlmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/hrlmsn-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/hrlmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/hrlmsn-100×55.jpg 100w,https://investorplace.com/wp-content/uploads/2016/04/hrlmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/04/hrlmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/hrlmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Mike Mozart via Flickr (Modified)
Dividend Growth Stocks: Hormel Current Yield: 2% 10-Year Dividend Growth: 267%

Meats mega brand Hormel Foods Corp (NYSE:HRL) is as stable a stock as they come. Its consumer-staples focus provides a steady revenue stream, and more than 50 straight years of dividend increases show its income power is reliable, too.

But don’t think this is one of those stocks increasing payouts modestly; adjusted for two 2-for-1 splits, payouts have increased almost 270% in the past decade!

Hormel continues to grow and dominate the processed-meat space, as evidenced by its 2015 acquisition of organic foods giant Applegate and its more recent buyout bid for food-service company Fontanini Italian Meats & Sausages.

That will ensure continued success — and dividends — for years to come.

Dividend Growth Stocks: American States Waterinvestorplace.com/wp-content/uploads/2016/05/awrmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/05/awrmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/05/awrmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/05/awrmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/05/awrmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/05/awrmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/05/awrmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/05/awrmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/05/awrmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw,728px” />Source: Sarah Laval via Flickr (Modified)
Dividend Growth Stocks: American States Water Current Yield: 1.8% 10-Year Dividend Growth: 104%

When investors think about reliable and stable businesses, utilities are often the go-to choice. However, while there are plenty of strong energy utilities out there worth buying, it’s easy to overlook the strength of a company like American States Water Co (NYSE:AWR) that deals in water and sewer infrastructure.

As water issues increasingly become a concern amid drought and shortages in the American West, you can be sure AWR is going to be even more important in the years ahead.

And considering it has increased dividends annually for 62 years — the longest streak of any publicly traded company — you can be sure it will share its success with shareholders via growing payouts at the same time.

While the current yield isn’t grand, you may not find a more reliable source of dividend growth and consistent paydays than this low-risk water utility.

Dividend Growth Stocks: Visainvestorplace.com/wp-content/uploads/2017/07/vmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/07/vmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/07/vmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/07/vmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/07/vmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/07/vmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/07/vmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/07/vmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/07/vmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/07/vmsn-170×93.jpg170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock
Dividend Growth Stocks: Visa Current Yield: 0.7% 10-Year Dividend Growth: 625%

Visa Inc (NYSE:V) is a global payments technology company providing electronic payment services, making it at the center of the “cashless economy” trend that is pervading not just develop markets but also fast-growing regions in Asia and South America. With about 50% share of the global market (outside of China, which has prohibitions on some banking and payments competition), Visa is your best bet to play this megatrend.

As commerce continues rapidly moving away from cash and towards digital payments, Visa is well-positioned to leverage strong growth from this trend. A strong brand name, extensive payment network and reliable technology should help Visa maintain its market position as the industry grows.

Speaking of growth, Visa’s dividend growth has been outstanding. The company’s payout has increased by nearly 25% per year over the past five calendar years, including a 21% hike late last year.

With a payout ratio below 40% and earnings growth expected to remain strong, Visa investors can likely expect strong double-digit dividend growth to continue over the coming years.

As of this writing, Jeff Reeves did not own a position in any of the aforementioned securities.

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