9 Firms with Dividend Growth Potential: Stock Pickers

Dividend seekers should look to companies that focus on growth, rather than the ones that only offer high yields.

So said Jeff Krumpelman, dividend growth portfolio manager at Hilliard Lyons Capital Management, and Doug MacKay, president and CIO of Broadleaf Partners. They shared their best plays.

“[We like] companies that can consistently grow their dividends on an annual basis, in a superior fashion,” Krumpelman told CNBC.

“These tend to be companies that are globally focused, with footprints internationally; are well-positioned in growing industries; have moderate payouts as a percent of earnings; and cash flow that can grow their payouts over time.”

MacKay: Waiting Game

In the meantime, MacKay concentrates on apartment REITs and also on companies that don’t necessarily pay a dividend now, but are likely to do so in the future, as they are rich in cash flow—such as Cisco .

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Krumpelman’s Picks:

General Mills

Kraft Foods

Deere

Occidental Petroleum

MacKay’s Picks:

McDonald’s

ConocoPhillips

HJ Heinz

BRE Properties

Exelon

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Scorecard—What They Said:

• Krumpelman's Previous Appearance on CNBC (Jul. 26, 2010)
• MacKay's Previous Appearance on CNBC (Aug. 18, 2010)

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More Market Opinions:

• Bank Fundamentals Are Improving—Buy These: Analyst
• 'Lots of Good Opportunities' in Tech: Stock Picker
• S&P to Reach 1,200 by Year-End: Chief Investor

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CNBC Slideshows:

• 15 Companies with Zero Debt

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CNBC Data Pages:

• Dow 30 Stocks—In Real Time
• Oil, Gold, Natural Gas Prices Now
• Where's the US Dollar Today?

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Disclosures:

No immediate information was available for Krumpelman or MacKay.

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Disclaimer