3 Cheap Stocks Set to Double Their Dividends

Plenty of investors judge a stock’s dividend by one thing: the current yield. It’s a key figure, to be sure, but it’s just a starting point. If you’re investing for the long haul, dividend growth is way more important. To see how focusing solely on current yield distorts the payout picture, take a look at Microsoft Corp. (MSFT) . The stock currently boasts a 2.6% dividend yield, just above the S&P 500 average of 2.2%. That’s not bad, but it masks the 125% boost in the company’s dividend over the past five years: if you’d bought MSFT back then, when the stock was trading around $25.70—roughly half of today’s level—you’d already be banking a 5.6% yield on your initial buy. Before you ask, no, I don’t... Read more