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Companies with solid earnings are being rewarded so far this year. In this stock-pickers' market, dividend investors want to see income growth because growing income means higher stock prices and sustainable dividend increases. As we discussed in our top rated dividend stocks article a few days ago, we have started to put more emphasis on income growth when we rate dividend stocks. Today we are highlighting stocks that yield 4% or more and have the highest 3 year net income growth rates.

UniSource Energy Corporation (NYSE:UNS)

UniSource Energy has a dividend yield of 4.5% and has increased its dividend for 11 consecutive years. 2012 will be the 12th year. It has a 5 year dividend growth rate of 14.7% and a payout ratio of 58%. UNS has a 3 year net income growth rate of 98.6%.

Prospect Capital Corporation (NASDAQ:PSEC)

Prospect Capital has a dividend yield of 11.2% and has been paying dividends since 2004. The company pays monthly dividends and although it cut its dividend in 2010 it started to raise its dividend again in 2011. PSEC has a 3 year net income growth rate of 62.4%.

TAL International Group, Inc. (NYSE:TAL)

TAL International has a dividend yield of 5.4% and a 5 year dividend growth rate of 8.7%. The company has raised its dividend for 3 consecutive years and has a 3 year net income growth rate of 45.7%. TAL has a payout ratio of 58%.

First Financial Bancorp (NASDAQ:FFBC)

First Financial has a dividend yield of 5.9% which is above its 5 year yield average of 5%. The company started paying dividends in 1990 and has a 5 year dividend growth rate of 21.5%. FFBC has a 3 year net income growth rate of 42.7%.

Alliance Resource Partners LP (NASDAQ:ARLP)

Alliance Resource Partners is a limited partnership that has a dividend yield of 5.2% and a 3 year net income growth rate of 42.6%. ARLP has increased its dividend for 9 consecutive years and has had steady dividend growth with 3 and 5 year dividend growth rates near 13%.

Pulaski Financial Corporation (NASDAQ:PULB)

Pulaski Financial has a dividend yield of 5.1% and a 3 year net income growth rate of 40.8%. The company started paying dividends in 1999 and has a payout ration of 69%. PULB has a 5 year dividend growth rate of just 2.5% and has not increased its dividend since 2009.

Park National Corporation (NYSEMKT:PRK)

Park National has a dividend yield of 5.5% and a 3 year net income growth rate of 36.7%. The company started paying dividends in 1990 but has not increased its dividend since 2009. In 2008 the company made an extra dividend distribution which slightly throws off the trend of dividend increases the company was experiencing at the time. PRK has a payout ratio of 87%.

Armanino Foods of Distinction (OTCPK:AMNF)

Armanio Foods has a dividend yield of 5.4% and has increased its dividend for 3 consecutive years since it cut its dividend in 2009. It has a 5 year dividend growth rate of 4.3% (14.1% for 3 years) and a 3 year net income growth rate of 25%.

Source: 8 High-Yield Stocks With The Best Income Growth