3 Attractive Income Stocks Whose Dividends Could Double

Dividend stocks can be the foundation of a great retirement portfolio. Not only do the payments put money in your pocket, which can help hedge against any dips in the stock market, but they're also usually a sign of a financially sound company. Dividends also give investors a painless opportunity to reinvest in a stock, thus compounding gains over time. However, not all income stocks live up to their full potential. Using the payout ratio -- i.e., the percentage of profits a company returns to its shareholders as dividends -- we can get a good bead on whether a company has room to increase its dividend. Ideally, we like to see healthy payout ratios between 50% and 75%.

Here are three income stocks with payout ratios currently below 50% that could potentially double their dividends. One of the best sectors to find solid dividend-paying companies is financials, so it's fitting that we begin this week by taking a closer look at PNC Financial Services Group (NYSE:PNC), a diversified financial firm operating in the eastern half of the United States. Tractor Supply (NASDAQ:TSCO), a rural retail giant that's currently paying just a 1.1% yield. That may not seem like much, but the sky's the limit for its payout. Similar to Tractor Supply, financial management solutions provider Intuit (NASDAQ:INTU) is another currently below-average dividend payer that income investors shouldn't overlook.

Source: Motley Fool

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