Therefore, investors would be more incentivized to buy companies that have a strong record of dividend payments.
The strategist expects more companies to add dividends payouts going forward, as firms begin to increasingly understand the appeal for investors.
The stocks had to meet the following criteria: Buy-rated by Citi Research 3-year dividend per share with a compound annual growth rate above 5% Above median expected dividend growth Potential dividend per share upside Reasonable payout ratio Reasonable dividend yield One name on the list was Visa , which currently has a dividend yield of 0.7%, according to Citi Research.
Semiconductor firm Lam Research also made the list, with a dividend yield of 0.9%.
More than half of analysts covering the stock rate it a buy or strong buy and see a potential upside of nearly 6%.
Persons:
Scott Chronert, Chronert, TD Cowen, Bryan Bergin, Riley, — CNBC's Michael Bloom
Organizations:
Federal Reserve, Citi, Fed, Citi Research's, Citi Research, Visa, LSEG, Mastercard, Semiconductor, Lam Research, Research
Locations:
Asia, Europe