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Stocks With Dividend Growth Potentials (GE, MSFT, NI)





Vanderlee mentioned the following stocks with high potential for dividend growth:

General Electric Co. (GE)
NiSource Inc. (NI)
Microsoft Corp. (MSFT)

From MarketWatch:

Peter Vanderlee, a portfolio manager at investment firm ClearBridge Advisors, recognizes the value of a dollar -- or at least part of one -- paid out in shareholder dividends.

Among the various ways companies can spend excess cash, dividends hold special appeal for shareholders. These regular payments indicate strong corporate health, even more so when a company consistently raises its dividend rate.

"Dividend growth is a very attractive characteristic," a signal to investors that a company's income stream is rising, Vanderlee said. "The ability of a company to pay dividends to investors where it makes sense, and the ability to grow that dividend stream, says a lot about the free-cash-flow-generating capabilities."

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