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High dividends and high earnings growth usually don’t come hand-in-hand – either a company decides to invest most of its earnings back into the company to fund growth, or it decides to give earnings back to shareholders through dividend payments.

When a company has a high EPS growth forecast as well as a high dividend growth rate, it probably indicates that the company has excellent growth opportunities. Analysts are confident in these companies’ growth prospects, while management is confident that they can afford to pay increasingly higher dividends.

Here we report a list of 12 companies with projected EPS growth over the next 5 years above 20%. These companies have also seen dividend growth over the past five years exceeding their industry averages. (Note: all companies listed have dividend yields above 1%).

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Do you think these companies will live up to analyst and management expectations? Use this list as a starting-off point for your own analysis.

List sorted by dividend yield.

1. Nucor Corporation (NYSE:NUE): Steel & Iron Industry. Market cap of $13.21B. Projected EPS growth over the next five years at 65.30%. Dividend yield at 3.47%. 5-year dividend growth rate at 9.29% vs. industry average at 5.8%. The stock has performed poorly over the last month, losing 10.07%.

2. TIM Participacoes S.A. (NYSE:TSU): Wireless Communications Industry. Market cap of $11.89B. Projected EPS growth over the next five years at 30.37%. Dividend yield at 2.63%. 5-year dividend growth rate at 23.05% vs. industry average at 5.14%. The stock has had a couple of great days, gaining 5.63% over the last week.

3. CNOOC Ltd. (NYSE:CEO): Independent Oil & Gas Industry. Market cap of $103.77B. Projected EPS growth over the next five years at 23.00%. Dividend yield at 2.54%. 5-year dividend growth rate at 12.47% vs. industry average at 3.69%. The stock has gained 52.05% over the last year.

4. Encana Corporation (NYSE:ECA): Major Integrated Oil & Gas Industry. Market cap of $24.63B. Projected EPS growth over the next five years at 22.50%. Dividend yield at 2.39%. 5-year dividend growth rate at 23.36% vs. industry average at 3.69%. The stock has gained 14.18% over the last year.

5. Cresud Inc. (NASDAQ:CRESY): Farm Products Industry. Market cap of $8.53B. Projected EPS growth over the next five years at 25.00%. Dividend yield at 2.06%. 5-year dividend growth rate at 16.4% vs. industry average at 2.38%. The stock has gained 48.34% over the last year.

6. Credicorp Ltd. (NYSE:BAP): Money Center Banks Industry. Market cap of $8.26B. Projected EPS growth over the next five years at 25.30%. Dividend yield at 1.88%. 5-year dividend growth rate at 19.51% vs. industry average at 8.46%. The stock has had a good month, gaining 14.06%.

7. Caterpillar Inc. (NYSE:CAT): Farm & Construction Machinery Industry. Market cap of $67.26B. Projected EPS growth over the next five years at 21.20%. Dividend yield at 1.69%. 5-year dividend growth rate at 12.63% vs. industry average at 8.7%. After a solid performance over the last year, CAT has pulled back during recent sessions. The stock is 7.77% below its SMA20 and 6.53% below its SMA50, but remains 11.63% above its SMA200. The stock has gained 77.31% over the last year.

8. Arch Coal Inc. (NYSE:ACI): Industrial Metals & Minerals Industry. Market cap of $4.84B. Projected EPS growth over the next five years at 33.83%. Dividend yield at 1.5%. 5-year dividend growth rate at 19.51% vs. industry average at 0.16%. The stock has performed poorly over the last month, losing 11.97%.

9. Talisman Energy Inc. (NYSE:TLM): Independent Oil & Gas Industry. Market cap of $21.48B. Projected EPS growth over the next five years at 30.00%. Dividend yield at 1.29%. 5-year dividend growth rate at 17.01% vs. industry average at 3.69%. The stock has performed poorly over the last month, losing 10.43%.

10. Tata Motors Ltd. (NYSE:TTM): Auto Manufacturers Industry. Market cap of $14.55B. Projected EPS growth over the next five years at 35.00%. Dividend yield at 1.24%. 5-year dividend growth rate at 8.45% vs. industry average at 2.2%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.13). The stock has gained 58.78% over the last year.

11. Schlumberger Limited (NYSE:SLB): Oil & Gas Equipment & Services Industry. Market cap of $113.30B. Projected EPS growth over the next five years at 20.04%. Dividend yield at 1.2%. 5-year dividend growth rate at 14.87% vs. industry average at 10.87%. The stock has gained 39.8% over the last year.

12. Allegheny Technologies Inc. (NYSE:ATI): Metal Fabrication Industry. Market cap of $6.77B. Projected EPS growth over the next five years at 48.10%. Dividend yield at 1.13%. 5-year dividend growth rate at 20.79% vs. industry average at 17.77%. The stock is a short squeeze candidate, with a short float at 15.03% (equivalent to 8.85 days of average volume). The stock has gained 29.32% over the last year.

*Dividend growth rates sourced from Reuters, all other data sourced from Finviz.

Source: 12 High-Growth Companies Raising Dividends