8 High Growth Dividend Aristocrats With Upside Potential

Investing in stocks involves risk -- there's no way around that fact. 

But you can lessen the amount of risk you take on by having a diversified portfolio, one that includes steady, high-probability growth in addition to those volatile equities that could soar or sputter.

With that in mind, below I'll highlight three stocks that have a lower risk profile than most. These aren't necessarily investments that you can buy and forget for the next decade, but they're also unlikely to plummet on account of some minor shift in their industry.

These companies are all leaders in their respective markets, have a record of market-thumping growth, and yet their valuations won't leave shareholders overly exposed to a large stock price decline.

Each of the results have a forward P/E under 20 while earnings are expected to grow by more than 10 percent for each of the next five years.

These are the results...

5 Basic Dividend Investments To Start Building The Ground Of Your Growth Portfolio

Are you just starting to build an all-important dividend portfolio and need some help separating the wheat from the chaff?

For beginner, it’s important to avoid big losses. A focus on high-quality dividend growth stocks is essential for building the ground of your portfolio.

Well, we think the following five dividend plays would form a solid basis for any income-generating portfolio.

Here is what I'm talking about...

Dividend Kings: An Update Stocks With The Longest Dividend Growth History

A dividend king is a company that has managed to increase dividends to shareholders for at least fifty years in a row.

There are only a handful of these companies worldwide, most of them being US based. 

A company that has managed to increase dividends each year for over half a century has a stable business model that has endured a lot over a long period of time.

As investors who want to live off dividends in retirement, we want to concentrate on quality businesses that operate in industries with significant competitive advantages.

This will allow those businesses to grow earnings and pay higher dividends over time. Raising dividends for over half a century is no small accomplishment and it is testament to the stability of the business model.

There are currently 18 Dividend Kings. Each Dividend King satisfies the primary requirement to be a Dividend Aristocrat (25 years of consecutive dividend increases) twice over.

The table of contents below lists out all 18 Dividend Kings so you can jump to analysis of each specific company:

50 Technology Dividend Dogs As Of June 2016

50 Technology Dividend Dogs As Of June 2016,
Source: Ycharts, Seeking Alpha

17 Dividend Aristocrats With Double-Digit EPS Growth Predictions Over 5 Years

Last month we looked at the Canadian dividend aristocrats, a list of companies that have increased dividends each year for the past five years.

The list of stocks is a good starting point for dividend investors, but it also reveals a number of flaws when looking to invest in a company.

Some companies grow their dividend by a small amount in order to remain on the list, while others ignore poor earnings and continue to distribute more in dividends then they earn.

Dividend growth stocks make an excellent choice for investors seeking both income and growth. Dividend growth stocks raise their dividend year after year, growing their owner’s income streams.

Who doesn’t want a rising standard of living year after year? Not only do dividend growth stocks have practical appeal, they have also historically outperformed non-dividend paying stocks by about 7.8 percentage points per year from 1972 through 2013. Not a bad excess return, for simply buying stocks that raise their dividends year after year.

That’s why it’s important to include additional criteria in your search for the best dividend stocks. One thing to look for is the 5-year average dividend growth rate, which shows how consistently a company raises its dividend over time.

Today I ran a stock screen that looked for companies that should increase earnings per share by 10 percent or more for the next five years. The results showed seventeen companies that should produce five years of double digit eps growth and possible double digit dividend growth. Here’s what we found:

17 Dividend Aristocrats With Double-Digit EPS Growth
Predictions Over 5 Years
(click to enlarge)