10 Stocks With Fastest Dividend Growth

BOSTON (TheStreet) -- Investing in dividend stocks requires more than the ability to spot high yields. Dividend growth is the surest way to outperform other income investments. The following 10 stocks offer attractive payouts, but more importantly, they sport some of the fastest dividend-growth rates. They receive high ratings from analysts. The stocks are ordered by their three-year dividend-growth rate, from fast to fastest. 10. AmTrust Financial Services AFSI is a property and casualty insurer. Second-quarter profit increased 15% to $31 million, or 51 cents a share, as revenue grew 35% to $246 million. The operating margin narrowed from 20% to 15%. AmTrust's stock trades at a trailing earnings multiple of 7, a forward earnings multiple of 5.7 and a book value multiple of 1.3 -- 57%, 45% and 98% discounts to insurance industry averages. Of analysts covering AmTrust, all five rate its stock "buy." A median price target of $20 suggests that a return of 42% lies ahead. 9. Healthcare Services Group HCSG provides housekeeping, laundry and food services to nursing homes, rehabilitation centers and hospitals. Second-quarter profit gained 12% to $8.7 million, or 20 cents a share, as revenue extended 13% to $193 million. The operating margin rose from 6.8% to 7.6%. Healthcare Service Group's stock trades at a premium to peers based on forward earnings, book value and cash flow. But, its double-digit sales growth justifies the premium. Half of the analysts following the stock rate it stock "buy" and half rate it "hold." 8. AmerisourceBergen ABC is a pharmaceutical-services company. Fiscal third-quarter profit advanced 37% to $163 million, or 57 cents a share, as revenue ascended 6.6% to $20 billion. The operating margin inched up from 1.2% to 1.3%. AmerisourceBergen's stock trades on par with peer averages for forward earnings, book value and cash flow. But, its PEG ratio, a measure of value relative to predicted long-run growth, of 0.5 signals a 50% discount to fair value. Around 72% of analysts rate the stock "buy." A median target of $45.88 implies 27% of upside. To read the rest, head over to TheStreet.com