We took at look at stocks with dividends poised to explode higher. These names all have the cash, forward-thinking management and shareholder-friendly policies to return cash to stakeholders. Here’s what we discovered: Stryker (SYK): Stryker revenues exceeded $7 billion for the first time in 2010 on the backs of aging boomers needing hip replacements. The company acquired the neurovascular business of Boston Scientific (BSX), smartly leveraging its patent portfolio to expand into this less mature market. A commitment to its employees has earned Stryker a place among the 100 Best Places to Work. We think shares should fetch around $80 apiece in 2012 using a 10% discount rate to arrive at this estimate. Stryker announced a first quarter dividend of $0.18. This is only the second year that Stryker has given quarterly dividends. In 2010, Stryker moved away from annual cash dividends to quarterly cash dividends. The current forward annual dividend yield is 1.17%. SYK has a payout ratio of 21%. It also has a little less than $1.5 billion in operating cash flow. We think Stryker has cemented itself within the industry and is a leader in innovation and will see growth because of it. They have also been…
6 Dividend Stocks Ready to Explode Higher
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