Take a second right now and imagine yourself on your 70th birthday.
What kind of life would you like yourself to have? With no full-time job in retirement, do you think you will have saved up enough money between now and then to enjoy that life?
Dividend-paying stocks could be a steady income source in retirement that doesn't stop even when you've called it a day on working for a living.
When it comes to choosing dividend stocks, you don't have to confine yourself to simply the big banks and boring, old companies. Some of today's growth stocks have equally fast-growing dividends as well.
Take for example, M2 Group Ltd (ASX: MTU). The broadband and mobile service provider has grown its earnings a whopping 36% on average annually over the past 10 years. Over the same time its dividends per share went from 2.2 cents to 26 cents, almost 13 times greater in only a decade.
Contrast that growth with National Australia Bank Ltd (ASX: NAB). The big four bank actually has slightly negative average earnings growth over the same time. Dividends have risen only 19% in 10 years.
I know which one I'd prefer!
Here are two more growth stocks that are also standout dividend stocks. They could even be the blue-chips of tomorrow, so it may pay to have them in your portfolio now.
SEEK Limited (ASX: SEK) has rewarded shareholders with high-double digit dividend growth over the past five years while its share price climbed 170%. The seek.com.au job search website operator is expected to raise dividends an average 17% annually over the next several years, so even new investors can start building dividend income with SEEK.
CSL Limited (ASX: CSL) is another solid growth stock that doesn't have a high yield, yet increases its dividend regularly. Dividends grew 11% annually on average in the past five years. The biopharmaceutical has an expanding international business that can generate long-term earnings growth. Along with forecast earnings growth in the mid-teens for the next few years, dividends are expected to increase annually by about 15%. The company regularly repurchases its shares, so that incrementally raises dividends per share as well.
