Underrated Dividend Stocks to Watch in 2014

Bigger isn't always better when it comes to dividend. Investors often happily find a company that pays a huge dividend but are soon disappointed when it's cut. Instead of focusing on yield alone, find a company with the ability to not only back its dividend, but also boost it. Here are three overlooked dividend stocks to consider in 2014.

CSX's (NYSE: CSX) dividend yield recently hit 2.2%. The railroad operator raised its dividend 6% this year and has doubled it in the past five years. Qualcomm (NASDAQ: QCOM) pays a modest 1.9% dividend yield, but the real power in its dividend is its growth story. The tech company recently raised it by more than 40% and has nearly doubled it during the past four years. While Disney (NYSE: DIS) pays a mere 1.2% dividend yield, its payout ratio is a healthy 22%. The company increased its dividend 15% this year and has nearly doubled its dividend in the past three years. By ignoring companies that pay lower yields, you may be missing out on the best dividend growth stocks of the coming decade.

Source: Motley Fool

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