Amgen, Inc. (AMGN), Apple Inc. (AAPL), Coach, Inc. (COH): Three Attractive, Future Dividend Achievers

Coach, Inc. (NYSE:COH) is a marketer of fine accessories for men and women that include bags, purses, wallets, belts, footwear, jewelry, watches, and fragrances. Coach is mostly known for its high quality products for women, but is currently making significant progress in increasing its market share in products for men.

Coach, Inc. (NYSE:COH)’s multi-channel distribution strategy includes approximately 500 stores in the U.S. and Canada in addition to over 300 directly-operated international locations in Japan, China, Singapore, Taiwan, Malaysia, and South Korea. Coach’s products are also available online through Coach.com as well in certain department stores and specialty retail centers.

Coach, Inc. (NYSE:COH) initialized its dividend program in 2009 and has since increased it every year by an average of 49% per year, resulting in a yield of 2.3%. With a payout ratio of only 32%, I believe that Coach’s dividend increases will continue well into the future.

By utilizing its brand power and innovative product design capabilities, Coach, Inc. (NYSE:COH) has continually expanded its existing product lines and developed new product categories. These efforts, combined with its international expansion plans, should provide impressive growth in upcoming years for Coach, Inc. (NYSE:COH). Coach’s current share price is well below its all-time high of over $77/share, and with a P/E of only 15.8, I believe that now is an attractive time to consider opening or adding to a position.

Summary

Although Amgen, Inc. (NASDAQ:AMGN), Apple Inc. (NASDAQ:AAPL), and Coach, Inc. (NYSE:COH) are not currently constituents of the dividend achievers index, I believe that it is only a matter of time before they are. These are all thriving companies with consistent, growing earnings that are willing to share their success with their shareholders. I believe that Amgen, Apple, and Coach will continue to provide attractive returns through dividends and capital gains and they are all excellent companies to consider adding to a diverse, well-managed portfolio.

The article Three Attractive, Future Dividend Achievers originally appeared on Fool.com and is written by Greg Williamson.

Greg Williamson owns shares of Apple, Amgen, and Coach. The Motley Fool recommends Apple and Coach. The Motley Fool owns shares of Apple and Coach. Greg is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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