All Dividend Stocks Are Not Created Equal

You have to be careful with dividend-paying stocks. Sometimes the yield is so high that one wonders if the dividend is sustainable. Other times, the dividend might look just fine, but if it’s a relatively new payout, then it might not be sustainable either. That’s why you always want to check to see if your stock of choice has not only been steadily paying dividends, but that the company has been increasing it over the years.

If the company is, it means it has been so efficient in deploying its capital that free cash flow has been rising, so it can afford to return increasing dividends to shareholders. Here are four such stocks that make a habit of increasing dividends: Automatic Data Processing (NASDAQ:ADP), Johnson & Johnson (NYSE:JNJ), Leggett & Platt (NYSE:LEG) and Cincinnati Financial Corporation (NASDAQ:CINF).


Source: Investor Place

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