Four U.S. stocks to own for high dividend growth

Bronze-rated Franklin U.S. Rising Dividends' manager Don Taylor picks a technology stock, one industrial stock, a medical equipment stock and one semiconductor stock.

Ruth Saldanha 15 November, 2018 | 6:00PM
Facebook Twitter LinkedIn

Most investors love dividends. Dividends provide steady cash inflows, which can be used or reinvested, making them a perfect add to the portfolios of almost all kinds of investors. But one question that many investors have is whether they should focus more on companies that pay high dividends now, or on those whose dividends are likely to grow in the future.

"In the context of an overall investment portfolio, even one focused on income, it is prudent to consider a combination of both dividend growers and high-yield stocks. Companies with a lower yield at present, but a good record of growing the dividend, and good prospects for continued growth in the business may well be the higher dividend companies of the future. Companies with a high dividend yield currently, but no signs of growth, may be in a stage of development where future dividends don't keep up with inflation or, in the worst-case scenarios, could be in jeopardy," says Michael Keaveney, Head of Investment Management at Morningstar Canada.

So if you want to consider companies with healthy dividend growth, where should you look? To answer this, we got in touch with Don Taylor, CIO of Rising Dividends Strategies for Franklin Equity Group and lead manager of the bronze-rated Franklin U.S. Rising Dividends.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Albemarle Corp226.85 USD-1.90Rating
Apple Inc146.06 USD-1.83Rating
Honeywell International Inc218.49 USD-0.53Rating
Microsoft Corp299.87 USD-1.75Rating
Stryker Corp273.03 USD-1.12Rating
Texas Instruments Inc196.25 USD-0.29Rating

About Author

Ruth Saldanha

Ruth Saldanha  is Senior Editor at Follow her on Twitter @KarishmaRuth.


© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies