3 Stocks with Big Dividend Growth Potential

Some misconceptions that some dividend investors fall into are that stocks with high yields are a better buy.

Buying dividend growth stocks can produce years of steady income increases. Because of compounding, low-yield dividend stocks have a higher potential for increasing annual payouts.

Even though the income is nice for high-yield dividend stocks where the payout is flat, the higher yield will increase the stock’s interest rate risk. The high yield can also be a sign that the company is struggling, and the dividend could be in jeopardy.

The objective is to find companies on the verge to outperform the overall market and are growing their dividends faster than the market average.


Apple (AAPL) is a stock with good earnings as well as dividend growth. Although the current dividend rate is 0.7%, it has an expected five-year growth rate of 10%.

Along with the growth of the stock as one of the top stocks in the S&P 500, analysts expect the earnings growth rate to be 11%. The last dividend increase for AAPL was in May of 2020 to 6.5% and, with its large cash position, there is plenty of opportunities to continue raising the payout.


Microsoft (MSFT) has had an excellent performance for share-price performance. The software company has grown its dividend for 16 consecutive years.

With a dividend yield of 1.1%, it has an expected growth rate of 10% over the next five years. The company generates more than $30 billion in free cash flow and holds $138 billion in cash reserves.


AbbVie (ABBV) has the highest yield on this list with 6.4%. The company has increased its dividend every year since its spin-off from Abbott Labs in 2013.

It has increased its dividend announced that it will increase the payout by 10.2% in 2021. Humira, Its top-selling arthritis drug, is quickly overtaking Lipitor as the best-ever sold drug.


Recommended Articles

Online Loan Companies Are No Easy Fix for Desperate Borrowers

If there is one thing that most Americans need right now, its more money. Online loan companies know this — and it's dangerous for many of us. Since the financial

investing in a volatile market

Investing in a Volatile Market for Long-Term Gains

Investing in a volatile market gives everyone the jitters. Novices, in particular, tend to sell in a panic and then wait for the right time to re-enter the market. Selling

Legumes: Nutrient Dense and Delicious, but Watch for These Preventable Side Effects

Legumes: Good or bad for you? The answer is, a little of both. And at the end of the day, what really matters is how your unique body feels when

4 Keys to Successful Retirement Planning

Retirement planning gives you the freedom to live life to the fullest. You can afford to have all the necessary comforts and amenities of life, go on a vacation occasionally,

Do Seniors Need Life Insurance Coverage?

Do seniors need life insurance coverage? Your golden years should be about enjoying the memories of one’s lifetime. Yet the reality of life is that we struggle to pay our bills

Better Investment Than a Casino? Probably a Fitness Club

We all aspire to be healthier. Who doesn’t aspire to lose weight and exercise more as an annual New Year’s resolution? Yet well-intentioned aspirations and actions are not the same

Top 7 Job Interview ‘Don’ts’ to Remember

Preparing for a job interview can be stress-inducing. Job interview tips and tricks are all over the Internet, but few of them share the things you should absolutely not do.

Ward Off Cancer and 11 Other Things This Asian Plant Can Do for Your Health

Recently, noni has been gaining popularity, and is often promoted as a plant that has a wide range of health benefits. Noni is a small evergreen native to the Pacific

Will Stocks Just Keep Going Up? Evidence Suggest It’s Possible

Are we in in a stock market bubble? One major brokerage house recently published an in-depth report on this very topic. It looked at a multitude of previous stock market

Why Renting vs. Owning in Retirement Might Be Better

Most retirees live on fixed incomes and have limited savings, so renting vs. owning in retirement is a real debate. Home ownership and maintenance, especially during the retirement years, can

5 Ways to Make Money by Investing in Farmland

Real estate, mutual funds, bonds, and stocks are popular investment opportunities. It is smart if you are focused on all or some of these investments, but you might be ignoring

Your Heartburn Medicine Might Give You a Heart Attack

The symptoms of heartburn can make you feel like your heart is on fire, but taking medication to soothe it may put you at a higher risk for a heart