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 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 read on whether or not a company has room to increase its dividend.

Payout ratios between 50% and 75% are ideal. Here are three income stocks with payout ratios currently below 50% that could potentially double dividend payments. On a fundamental basis, coffee chain behemoth Starbucks (NASDAQ:SBUX) doesn't fit the traditional mold of an "attractive" stock. But this is Starbucks we're talking about -- a company with a number of innovative and competitive advantages that could be worth a deeper dive for income investors. Sticking with big-brand consumer goods, income investors may want to take a closer look at appliance maker Whirlpool (NYSE:WHR), after the company's stock nosedived following a disappointing third-quarter earnings report. A final dividend stock you'd be wise to keep your eyes on is FactSet Research Systems (NYSE:FDS), a financial-services company that provides investment professionals with on-demand data analytics and content.

Source: Motley Fool

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