3 Top Dividend Stocks To Buy In 2018 With Double-Digit Dividend Growth

best 2018 growth stocks
If you're looking for steady income from your stocks, these companies should be at the top of your watchlist, if not already in your portfolio. All are not only market leaders but financially strong companies with meaningful dividends that are rising on an annual basis. These three stocks are tech giant Apple (NASDAQ: AAPL), ski resort company Vail Resorts (NYSE: MTN), and home-improvement retailer Home Depot (NYSE: HD). Here's what makes each of these names attractive dividend stocks. But first, here are their raw numbers.

Though none of these companies has a spectacularly high dividend yield, with all three companies' dividend yields below 2%, investors shouldn't overlook these stocks as good income investments. Their dividends are not only rising by double digits, but there's good reason to expect strong growth in their dividends to continue. Since initiating its dividend in 2012, Apple has morphed into an excellent investment for those looking for income.

Although its 1.4% dividend yield is the lowest among these three stocks, Apple shines as a dividend stock with its extremely low payout ratio. Unlike Apple, Vail is more of a traditional dividend stock, paying out a much higher percentage of its earnings in dividends to shareholders. In the trailing 12 months, Vail paid out 65% of its earnings in dividends.

But Vail makes up for its high payout ratio with a clear commitment to dividend growth and a robust dividend yield. Over the past five- and three-year periods, its dividend has risen at an average annual rate of 39% and 37%, respectively. Its most recent dividend growth also remained strong, with a 30% year-over-year boost. Of course, investors shouldn't expect dividend growth to remain this strong over the long haul. It's unlikely dividend growth can maintain this trajectory given Vail's 65% payout ratio.

But with management clearly prioritizing dividend growth, more double-digit dividend growth in the coming years is likely, albeit at decelerating rates. Home Depot is probably the most well-rounded dividend stock of these three companies. It boasts a meaningful dividend yield of 1.8%, strong double-digit dividend growth, and a conservative payout ratio. To top it all off, all three of these companies are market leaders in their segments.

Apple dominates profits in smartphones and continues to demonstrate uncanny pricing power across its product lines. Vail is the leader in luxury ski resorts, with Colorado's most iconic properties and resorts in Utah, Lake Tahoe, and Whistler under its belt -- destinations that will pay dividends for decades to come. Finally, Home Depot is the world's largest home-improvement retailer and has shocked investors with its ability to grow sales and profits as other retail sectors fall victim to an evolving retail landscape.

Combining their market leadership with their strong dividends, these three stocks represent low-risk bets for investors looking for a sustainable, growing stream of income. 10 stocks we like better than Home DepotWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Home Depot wasn't one of them!

That's right -- they think these 10 stocks are even better buys. Click here to learn about these picks! Daniel Sparks owns shares of Apple. The Motley Fool owns shares of and recommends Apple. 110 calls on Home Depot. The Motley Fool recommends Home Depot and Vail Resorts. The Motley Fool has a disclosure policy.

It recently expanded into Quebec and expanded its loan offerings. Pembina Pipeline is one of North America’s premier pipeline companies. It is a fully-integrated midstream company with a diversified asset portfolio of crude oil, condensate, NGL and gas. 5.8 billion in dividends to shareholders since 1998. Pembina is a Canadian Dividend Aristocrat having raised dividends for six consecutive years.

It recently surprised with a 5.6% raise, which marks its third raise in the last year. The company has an exceptional record of delivering projects on-time and on budget. Since 2013, the company has put into operation 13 significant projects. Of those, not a single one was over budget. In fact, nine of them came in under-budget.

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