5 Outstanding Dividend Growth Stocks

One of the main characteristics of quality dividend stocks is that they have a strong brand name. Strong brand by itself would not provide the type of consistent long-term returns that dividend growth investors expect. Add in a wide economic moat, or a strong competitive advantage, which ensures strong pricing power and the qualitative screen for selecting stocks is complete. Examples of companies with a wide moat include Coca Cola (KO), whose products are well-recognized worldwide and are desirable by consumers, which are willing to pay extra in order to have that specific brand. The company has been able to realize above average returns on capital, which has also allowed it to generate a lot in excess cash flows, which fuel future dividend hikes. Because of these characteristics, Coca Cola has managed to raise distributions over the past 48 consecutive years. Another important characteristic for selecting quality dividend stocks is... Read more