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Five Possible Off-the-Radar Dividend Growth Stocks

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  • Stocks from the Russell 3000 index, with market cap > $500mm
  • Dividend Yield > 2.5% (S&P 500 = 2.1%)
  • Payout Ratio < 50% (conservative because earnings reduction won’t lead to dividend shortfall)
  • 5-year Dividend Growth > 6% (Looking for growing dividends – S&P 500 is down over past 5 years)
  • Dividend Increases Last 5 Years = 5 (Looking for increase each year)
  • 5-year EPS Growth > 0% (Good test of ability to “weather the storm”
  • 2012 Projected EPS Growth > 0%  (No near-term risk to dividend growth)
  • Net Debt to Capital < 20% (Strong balance sheet)
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