10 Cheap Stocks Set to Grow Their Dividends
We look at the least expensive companies in the Morningstar US Dividend Growth Index, which looks for cash-rich businesses with sustainable and growing yields.
Dividend growth strategies have gained attention from investors in recent years, and it's not hard to understand why. Strategies that focus on companies with a history of dividend growth--and the ability to sustain it--such as the Morningstar US Dividend Growth Index, are core, total return-focused equity strategies with a defensive bent.
It's important for investors to have reasonable expectations for dividend growth strategies, though. Investors seeking current income might not be satisfied with a yield such as the one supplied by the Dividend Growth Index. In fact, the dividend yield for the index is only slightly higher than that of the market as a whole: 2.48% versus 1.88% for the Morningstar US Market Index.
Karen Wallace does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.