Dividend Stocks That Deliver

Dividend stocks are everyone’s favourite investments these days, but obsessing over yields and payout ratios can lead you to miss an important part of the total return picture: growth. A stock with a modest dividend but a high growth rate can be superior to one that boasts a high dividend but no capacity to expand its earnings. To demonstrate this, we went searching for dividend-paying stocks that also have a demonstrated ability to grow their profits.

Craig McGee, senior consultant at Morningstar Canada, scoured the Morningstar database for Canadian and U.S. stocks that pay dividends and are relatively cheap given their growth and dividend rates. The 25 U.S. and Canadian companies that made the cut include some names that might not be familiar to you, such as Scana Corp. (a power utility in the southern United States) and Aimia Inc. (a developer of customer loyalty programs).

Source: Globe And Mail

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