7 Stocks With the Greatest Near-Future Dividend Growth Potential
Trading stocks can be exhilarating. It’s like riding a horse blindfolded — the inexperienced quickly get disoriented, while the experienced trust the horse and hope for the best — but with higher stakes. Like gambling, the chance to earn a significant return on your investment is weighed against the chance to lose some or all of your investment. However, unlike most kinds of gambling, there are ways that the savvy and patient can earn reliable returns over a long period of time.
Most people with money in the market are investing in a nest egg, such as their retirement or their children’s college fund. This is the kind of money that people don’t want to gamble with: they want to invest it with as little risk as is tolerable. They want to invest for the long run and would rather see their money grow slowly but surely than in dramatic swings between profits and losses.
For this class of investor, stocks with large dividends have always been a favorite pick. Stocks that offer large dividends generally belong to companies that are more mature, that have more established businesses, and that have a well-defined place in the market. This generally means slower growth but also less risk.
If you’re interested in dividend stocks, something to look out for are companies that are expected to increase their dividend rapidly in the near future. Analysts at Bloomberg compiled a list of the 25 stocks with the highest projected dividend growth over the next three years. Here’s a look at the top seven.