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5 Best Stocks for Continued Dividend Growth

Don't just chase yield — chase potential

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Ameriprise Financial

Ameriprise AMPCurrent Yield: 2.3%
Payout Ratio: 31%
Dividend Growth: 370% since 2005

Founded in 1894, Ameriprise Financial (AMP) has a long history as a financial services business but only recently has been trading on the NYSE in its current formation after a 2005 spinoff from American Express (AXP).

But while the financials of AMP the stock don’t have the same century of history behind them as the company itself, the small body of work is compelling.

Consider that AMP didn’t slash its dividend even during the depths of the downturn. And even more impressive, it continued to increase payouts.

The dividend has soared from 11 cents in 2005 when AMP was spun off to 52 cents quarterly as of right now after a recent dividend increase. That’s an impressive feat. And given that the payout is still a mere 31% currently and 28% of FY 2014 earnings forecasts, more dividend increases surely are in the works.

Throw in one-year returns of more than 60% in Ameriprise and you have a pretty good case for a stock with staying power.

Article printed from InvestorPlace Media,

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