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: Among the three giants that income seekers should be eyeing this week is America's leading pharmacy by market share, CVS Health (NYSE:CVS). Another income stock dividend seekers would be wise to put on their radar is combat-ship developer General Dynamics (NYSE:GD). Finally, dividend investors may want to keep their eyes on money-center behemoth Citigroup (NYSE:C), which looks poised to benefit from a Trump presidency.

Source: Motley Fool

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