1.
Text
Text
3 Top Dividend Growth
Stocks to Buy
Image source: Cisco.

2.
Activision Blizzard is one
of the few video game
publishers that pays a
dividend, and, while its
current yield might not
look like much, there’s a
good chance the
company will deliver
reliable payout increases
down the line.
Image source: Activision Blizzard.
Activision Blizzard

3.
Activision Blizzard dividend profile and valuation
Yield Years of
Dividend
Growth
Payout
Ratio
Dividend
Growth
over Last
5 Years
Free
Cash
Flow
(TTM)
0.5% 6 16.5% 58% $2.1
billion
Activision Blizzard might appear pricey trading at roughly
30 times forward earnings projections, but the strength of
its properties and a favorable outlook for the video games
industry suggests it can still be a big winner for investors.

4.
With hit franchises
including Overwatch,
World of Warcraft, and
Call of Duty, Activision
Blizzard is backed by a
nearly unmatched stable
of video game brands. It’s
also got a great track
record of creating new hit
properties.
Image source: Activision Blizzard.

5.
The company looks to have
continued earnings
momentum thanks to
growth in high-margin
digitally-delivered content,
an expanding market for
video games, and its push
into merchandise sales --
paving the way for big
dividend growth.
Image source: Activision Blizzard.

6.
Nike
When it comes to brand
strength, there aren’t many
companies that can match
Nike. The footwear and
apparel leader has been
leading its industry for
decades and has a variety of
characteristics that make it a
smart portfolio addition.
Image source: Nike.

7.
Nike dividend profile and valuation
Yield Years of
Dividend
Growth
Payout
Ratio
Dividend
Growth
over Last
5 Years
Free
Cash
Flow
(TTM)
1.2% 15 30% 100% $2.5
billion
Nike has a forward P/E of roughly 24, which might look
expensive, but the company still has significant growth
potential thanks to cost cutting initiatives, international
expansion, and online selling.

8.
The company already has a
stellar dividend growth history,
and has raised its payout at an
average annual rate of 15.6%
over the last five years and
14.7% over the last decade.
With its low payout ratio, Nike
has plenty of room to continue
delivering big payout boosts.
Image source: Nike.

9.
Nike’s stellar profitability gives it a long runway for
dividend growth. Last fiscal year saw it record a gross
margin of more than 44%.
Image source: Nike.

10.
Disney’s stable of classic characters and film properties is
unrivaled in the entertainment industry, and the synergies
that exist between its film, theme park, media networks,
and consumer products segments make it a great stock to
own for the long haul.
Image source: Disney.
Disney

11.
Disney dividend profile and valuation
Yield Years of
Dividend
Growth
Payout
Ratio
Dividend
Growth
over Last
5 Years
Free
Cash
Flow
(TTM)
1.5% 2 26.4% 108% $7.8
billion
Disney looks cheap valued at roughly 17 times forward
earnings estimates, and its dividend growth story is
actually better than it looks on paper.

12.
The company distributed a one-time payout bonus when it
switched from an annual to a semi-annual payout in 2014,
making for an unfavorable comparison in 2015, but Disney
has boosted its payout in every other year since 2010.
Image source: Disney.

13.
Disney is a company at the top of its class, and its stock
presents a rare combination of value, growth potential, and
returned income that makes it a great buy.
Image source: Disney.

14.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at
its recent event, but a few Wall Street analysts and the Fool didn't
miss a beat: There's a small company that's powering their brand-
new gadgets and the coming revolution in technology. And we
think its stock price has nearly unlimited room to run for early-in-
the-know investors! To be one of them, just click here.