Three Inconspicuous Stocks Dividend Investors Love – V.F. Corporation (VFC), Sigma-Aldrich Corporation (SIAL), Illinois Tool Works Inc. (ITW)

3. Illinois Tool Works Inc. (NYSE:ITW)
This maker of industrial products and equipment like fasteners, coatings, and plastic stretch films has increased its dividend for 49 consecutive years. Even though the stock suffered badly in 2008 when the construction and transportation industries it depends on were hit hard, Illinois Tool Works Inc. (NYSE:ITW) is greatly benefiting from the current economic recovery.

Its stock currently boasts a 2.2% dividend yield, and the company recently grew its dividend by 5%. In fact, the Illinois-based manufacturer increased its dividend by 230% over the past decade, outpacing the CPI by eight-and-a-half times. Its payout ratio is a very healthy 26%.

Foolish takeaway
By ignoring companies that pay lower yields, you’re likely missing out on the next best dividend growth stocks. Don’t stop your search at high dividend yields alone. Be sure the company has the financial resources to boost its dividend, effectively giving you a pay raise, for years to come.

The article 3 Inconspicuous Stocks Dividend Investors Love originally appeared on Fool.com and is written by Nicole Seghetti.

Fool contributor Nicole Seghetti owns shares of Sigma-Aldrich. Follow her on Twitter @NicoleSeghetti. The Motley Fool recommends Illinois Tool Works.

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