There’s a reason we highlight Dependable Dividend Stocks — it’s no small thing to put together decades of dividend growth, and it usually helps identify rock-solid companies that can slug it out through thick and thin.
But it’s easy to put too much focus on these well-known dividend stocks — companies like Coca-Cola (KO), which has been upping its payout for almost half a century — and miss other businesses that are starting to build dividend legacies of their own.
Right now, we’re looking at companies that have improved their quarterly payouts by at least 40% in the past three years. Also, while these are very much long-term buys, there’s no reason to jump in at too expensive a valuation, so we’re looking for ones that at least are coming in around the S&P 500 average of 19 — if not lower.
The last thing to note is that none of these companies have particularly screaming yields, but don’t let that concern you. All three stocks have enjoyed good to great returns in the past few years, so dividends are actually just trying to keep up with prices — and should that continue, you’ll be riding a one-two punch of an improving yield on cost as well as stock appreciation.
Now, here’s a look at those three stocks: