These 3 Stocks With Fast-Growing Dividends Can Help You Beat Inflation
Eli Lilly, Parker-Hannifin, and Microsoft all have grown their dividend by 50% or more over the past five years, but still have plenty of room for dividend growth.
These 3 Stocks With Fast-Growing Dividends Can Help You Beat Inflation
Overview
Income investors love Dividend Kings, that select group of stocks that have increased their dividends for 50 or more consecutive years. They love them for their stability, their fiscal management, and their ability to generate free cash flow.
They're great, but if you're looking to keep up with inflation, maybe it makes more sense to find dividend stocks that have kept up their increases at above-inflationary rates. Those with increases of 50% or more over the past five years but with relatively low payout ratios, so they can continue to keep raising their dividends. Yes, their yields are average or below, but they provide dependable dividend growth and share-price growth.
Details
Three stocks come to mind and they're not coming out of the blue. Pharmaceutical giant Eli Lilly (NYSE: LLY), motion control and technologies conglomerate Parker-Hannifin (NYSE: PH), and tech behemoth Microsoft (NASDAQ: MSFT) have generously boosted dividends by 50% or more over the past five years while growing earnings per share (EPS) by 100% or more, while still keeping payout ratios below 27%.
Source
Originally published at www.fool.com.
