10 Dividend Champions With Very Low Payout Ratios - The Next Big Dividend Grower?

Dividend Champions with low payout ratios and small debt figures originally published at long-term-investments.blogspot.com. Dividend Champions are stocks with a very long history of consecutive dividend hikes. They have achieved to boost dividends year over year for more than 25 years without an interruption.

Only 105 stocks have managed this very important goal for long-term dividend growth investors. I like those stocks but some of them have a really high dividend payout ratio.

Earlier, I talked about the importance of the dividend growth rate and that it would be better to buy lower yielding stocks with a much higher growth rate than stocks with very big yields. Two main criteria for future dividend growth are the debt ratios and dividend payout figures.

This month, I started an article serial about dividend stocks with potential to boost dividends. Today I would like to present you Dividend Champions with the lowest dividend payouts. Only 10 income growth firms have a payout ratio of less than 20 percent. Seven of them are currently recommended to buy.

Most of them are modestly leveraged. Not low but also not too high but the right leverage ratio is also a question of the business model and the strong cash-flow of a corporate as well as the costs for growth.

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