20 Dividend Stocks With Rock-Solid Dividend Growth Prospects

Dividend investing is one of the most respected investing strategies, and for sound reasons. Investing in dividend stocks makes a lot of sense intuitively, you don't need a PHD in economics to understand why companies making big cash distributions can be attractive investments in the long term. Besides, academic research has proven that companies with solid and growing dividends tend to deliver attractive returns over the years.
Dividends don’t just provide cash flows to investors, which is a big advantage on itself. Dividend payments also say a lot about a company’s fundamental health. Companies that are distributing growing dividends are consistently generating more cash flow than they need to retain in the business, and this obviously speaks well about the company’s fundamentals.
When it comes to picking the best dividend growth stocks, variables such as dividend growth rate, payout ratios, and capital distributions through both dividends and buybacks can make a big difference in returns.
The following paragraphs will be introducing a quantitative system based on stocks with strong quantitative indicators in these key areas. The system makes sense from a theoretical perspective, and backtested performance is remarkably encouraging. A quantitative system such as this one won’t tell you everything you need to know before buying a stock. It’s important to always do your homework and take a look at the business behind the numbers in order... Read more