Hey there, savvy investors! Ready to uncover some serious dividend growth monsters? Buckle up, because we’re about to dive into three incredible stocks that are cranking out double-digit dividend increases while still trading at bargain prices. If you’re all about snagging cheap dividend stocks that laugh in the face of inflation, you’re in for a treat!
Now, I know what you’re thinking. „Double-digit dividend growth? Those stocks must be crazy expensive!“ Well, prepare to have your mind blown, because these hidden gems are flying under the radar, just waiting for smart investors like you to scoop them up.
Let’s kick things off with a bang!
- Bank OZK (OZK): The Dividend-Raising Machine
First up, we’ve got Bank OZK, and let me tell you, this regional bank is on an absolute tear when it comes to dividends. Get this: they’ve been hiking their dividend every single quarter. Yeah, you read that right – every quarter!
The numbers speak for themselves:
- 5-year dividend growth rate: A jaw-dropping 11.77%
- Current yield: A juicy 3.80%
- Dividend payout ratio: A super-safe 24.16%
It’s like finding a unicorn in the financial sector – high yield, insane growth, and a dividend that’s safer than Fort Knox. But wait, it gets better! Thanks to some recent market drama (I’m looking at you, Citi), Bank OZK is trading at a sweet discount. We’re talking potential upside from $40.77 to $47.52 per share. Talk about a bargain!
- CME Group (CME): The Market Maven with a Dividend Kick
Next on our list is CME Group, and if you’ve been following my articles, you know I’m a big fan. This isn’t just any old financial stock – CME Group is the 800-pound gorilla of derivatives exchanges. Whether it’s oil futures or currency trading, CME Group is where the action happens.
Let’s break down why CME Group is a dividend investor’s dream:
- 10-year average annual return: A market-crushing 15.25%
- 5-year dividend growth rate: A solid 9.18%
- Secret weapon: Annual special dividends boosting the yield to 4-5%
But here’s the kicker – CME’s stock has been on a bit of a slide lately, trading around $195. For long-term investors, this is like finding designer shoes in the bargain bin. Time to go shopping!
- Kroger (KR): The Surprise Dividend Growth Superstar
Last but definitely not least, we’ve got Kroger. Now, I know what you’re thinking. „A grocery store? Really?“ But trust me, Kroger is serving up way more than just produce and pantry staples.
Check out these mouthwatering stats:
- 5-year dividend growth rate: A whopping 15.68%
- Current P/E ratio: An ultra-low 11.26
- Dividend yield: A respectable 2.56%
- Dividend payout ratio: A rock-solid 24.79%
It’s like Kroger found the secret sauce of combining value, yield, and growth all in one delicious package. And hey, if it’s good enough for Warren Buffett (yep, he’s a major shareholder), it’s good enough for us mere mortals!
Wrapping It Up: Your Dividend Growth Game Plan
Alright, dividend growth hunters, let’s recap our treasure map:
- Bank OZK: The quarterly dividend raiser with a high yield
- CME Group: The derivatives powerhouse with special dividend surprises
- Kroger: The undercover dividend growth champ
Now, I know the old „Sell in May and go away“ saying might be ringing in your ears. And sure, historically, the market tends to take a bit of a summer snooze. But here’s the thing – for eagle-eyed investors like us, that summer lull can be prime hunting season for fantastic stocks at discount prices.
Remember, building a killer dividend growth portfolio is a marathon, not a sprint. These three stocks are a great starting point, but always do your homework and make sure any investment fits your personal financial goals and risk tolerance.
So, what do you think? Are you ready to supercharge your dividend growth game? Got any hidden gems of your own to share? Drop a comment below – I’d love to hear what’s on your investment radar!
Happy investing, and may your dividends always grow faster than your waistline after Thanksgiving dinner!
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Disclaimer: Don’t forget, this article is meant to be informative and fun, not a substitute for professional financial advice. Always do your own research and consult with a financial advisor before making investment decisions. Now go forth and conquer those dividends!