- Some investors maybe worried about interest rate hikes.
- Lower-yielding companies with estimated high earnings growth will likely be less affected by interest rate hikes compared to high-yielders.
- These 5 companies could help complement the blue chip dividend payers in a dividend growth portfolio.
With the interest rate hike matter looming, investors might opt to look for investments which pay a lower yield, but have higher expected earnings growth rates.
If you’re looking for total return in investments and are not concerned about the immediate dividend income, here are 5 businesses for consideration. They are all expected to grow earnings at a rate of 10% or higher per year in the near future.
I placed them from lowest expected earnings growth to highest, assuming it’s easier to achieve lower growth than higher. So the companies appearing first are more likely to achieve their expected earnings growth. Additionally, they’re all expected to grow dividends at least 10% per year in the foreseeable future.
- Enbridge Inc (TSX:ENB)(NYSE:ENB) with 3% yield and 10-12% expected earnings growth.
- Gilead Sciences, Inc. (NASDAQ:GILD) with 1.5% yield and 11% estimated earnings growth.
- Union Pacific Corporation (NYSE:UNP) with 2.1% yield and 11% estimated earnings growth.
- Johnson Controls Inc (NYSE:JCI) with 2% yield and 12% expected earnings growth.
- Cummins Inc. (NYSE:CMI) with 2.2% yield and 15% estimated earnings growth.
To learn more about each of these companies, check out the Seeking Alpha article at 5 Dividend Companies With 10-15% Growth.