QUALCOMM, Inc. (QCOM), HollyFrontier Corp (HFC): 4 Dividend Stocks That Could Double Payouts in 3 Years

The company posted a 12.5% increase in EPS in the previous quarter, driven by a 78% gain in Potash Corp./Saskatchewan (USA) (NYSE:POT) sales compared to the same quarter a year earlier. Aside from improved global potash demand in North America, China, and Brazil, the company also reported robust nitrogen sales. The strong nitrogen demand has faced supply challenges in key producing regions and is supported by higher ammonia prices. Fertilizer applications should be strong amid supportive crop economics; in China, higher cost imports will push for domestic crop productivity enhancements.

Thus, the outlook for Potash is optimistic, as potash consumption is expected to increase by almost 12% this year. In the period between 2012 and 2016, global potash consumption will grow at a rate of 3.5% per year, nitrogen consumption will expand at a rate of 1.3% annually, and phosphate demand will increase by 2.7% per annum. As Potash is in the process of expanding ammonia and urea capacity by 2015, margin potential in this segment will develop.

Final thoughts

There are plenty of dividend-paying companies out there that offer investors solid yield, but this group shrink significantly when we factor in their ability to hypothetically double their payout. Qualcomm and Cisco’s tech prowess, in addition to HollyFrontier Corp (NYSE:HFC)’s strength in the domestic oil marketplace and Potash Corp.’s ability to benefit from an ongoing potash boom make this “fab four” worth watching. As mentioned above, to learn more about what makes Insider Monkey so unique, check this out.

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