Seeking Alpha
Dividend investing
Profile| Send Message|
( followers)  

Albert Einstein called it "the greatest mathematical discovery of all time." For the savvy investor, the principles of compound interest can be used to make a substantial amount of money over time. There are numerous accounts of normal people buying stocks and the returns compound over time. The best way to do this is with dividend paying stocks. No, forget about finding the next super stock that will propel your investment into millions in a year or two. The sure way to wealth is to buy dividend stocks with high dividend growth rates. Here is a list of stocks with high dividend growth rates with a very bullish outlook.

Targa Resources Partners LP (NGLS) is a publicly traded limited partnership involved in gathering, compressing, treating, processing and selling natural gas and fractionating and selling natural gas liquids and NGL products. NGLS has a current dividend yield of 5.68% with an annual dividend payment of $2.49. Five years ago, NGLS paid $1.85 in annual dividends. The 5-year average dividend growth rate is 29.83%. NGLS increased its dividend 11.69% in the past year. At its current price of $44.75, the yield on cost will be 15% in 10 years. NGLS is projected to grow its EPS by 17.62% next year. NGLS has an equity summary score of 9.4 out of 10 for a Very Bullish outlook.

Seagate Technology (STX) is one of the world's largest manufacturers of hard disc drives. This technology is the primary medium for storing electronic data in computers and other electronic devices because of its high performance, low costs, and high storage capacities. STX has a current dividend yield of 3.11% with an annual dividend payment of $1.00. Five years ago, STX paid $0.46 in annual dividends. The 5-year average dividend growth rate is 21.35%. STX increased its dividend 85.19% in the past year. At its current price of $31.24, the yield on cost will be 16.5% in 10 years using a 20% growth rate. STX is projected to grow its EPS by32% next year. STX has an equity summary score of 9.9 out of 10 for a Very Bullish outlook.

With estimated 2011 sales of $47 billion, Lockheed Martin (LMT) is the world's largest military weapons maker. In 2010, the company derived 84% of its net sales from the U.S. government, including the Department of Defense as well as non-DoD agencies. Sales to foreign governments contributed 15% of net sales (up from 13% in 2009), with 1% of net sales to commercial and other customers. Lockheed Martin conducts business through four operating segments: Aeronautics; Electronic Systems; Space Systems; and Information Systems & Global Services. LMT has a current dividend yield of 4.44% with an annual dividend payment of $4.00. Five years ago, LMT paid $1.83 in annual dividends. The 5-year average dividend growth rate is 23.3%. LMT increased its dividend 23% in the past year. At its current price of $89.47, the yield on cost will be 23.1% in 10 years using a 20% growth rate. LMT is projected to grow its EPS by6.8% next year. LMT has an equity summary score of 9.9 out of 10 for a Very Bullish outlook.

Molson Coors Brewing Company (TAP) was formed in February 2005 by the combination of Adolph Coors Co. and Canadian brewer Molson, Inc. The transaction resulted in each Molson Class B voting share being converted to shares with 0.126 voting rights and 0.234 non-voting rights of Molson Coors stock, and each Molson Class A converted to shares with a 0.360 non-voting share of Molson Coors. In June 2008, Molson Coors and SABMiller formed a joint venture of each company's United States and Puerto Rican operations. TAP has a current dividend yield of 3.04% with an annual dividend payment of $1.28. Five years ago, TAP paid $0.76 in annual dividends. The 5-year average dividend growth rate is 14.8%. TAP increased its dividend 14% in the past year. At its current price of $42.47, the yield on cost will be 10.6% in 10 years using a 15% growth rate. TAP is projected to grow its EPS by 6.4% next year. TAP has an equity summary score of 9.7 out of 10 for a Very Bullish outlook.


(Click to enlarge)

Source: High Dividend Growth Stocks To Compound Returns