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3 Dividend Growth Stocks for Your Radar

Gilead, Intel, and Citigroup look to maintain consistent growth and steady futures.

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Susan Dziubinski: Hi, I'm Susan Dziubinski from Morningstar.com. There's a lot to like about stocks with growing dividends. Not only do dividend growth stocks pay out income on a regular basis, but they also tend to be highly profitable, financially healthy businesses. Today, we're taking a look at three stocks that were recently added to the Morningstar Dividend Growth Index, which consists of U.S. stocks with a history of consistently growing their dividends and a significant margin to continue to do so in the future.

Karen Andersen: Gilead is a wide moat biotech we cover at Morningstar. It's trading at about a 20% discount our $84 fair value estimate. It's best known for its dominant HIV franchise as well as hepatitis C treatments and cancer therapies. I think investors right now are concerned about where sales growth is going to be coming from in the future, as well as its late stage pipeline. If you look at our forecast, we've got very stable, growing HIV sales going forward through 2033. And this is really because of a new HIV drug they have, Biktarvy, that's just been launched and had a tremendous growth profile so far. We also think their pipeline, even though it is thinner than some other companies, it has very strong prospects for an arthritis drug that's going to be launching this year. So, that's a multibillion-dollar franchise.

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Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.