2 dividend growth stocks that could be millionaire-makers

Buying shares in companies with the potential to deliver fast-rising dividends could be a shrewd investment strategy. Inflation has increased to 2.9% and is forecast to move higher. This could increase demand for stocks with brisk dividend growth rates.

Furthermore, increasing dividends indicate management confidence in the company's long-term future. Given the uncertainty present in the UK economic outlook, this could positively catalyse investor sentiment over the medium term.

With the above in mind, here are two shares which could be worth buying due to their positive income outlooks.

Improving performance

Reporting on Thursday was pharmaceuticals and services company Clinigen(LSE: CLIN). Its full-year results showed a rise in adjusted gross profit of 22%, with the company's organic growth strategy and acquisition activity both proving to be positive catalysts. Cash flow generation was strong, with cash generated from operations rising by 11%. This allowed the company to pay a dividend which was 25% up on the previous year.

Looking ahead, the company has significant growth potential. Its business units all performed well in the most recent year, with it enjoying particularly strong growth in Africa and Asia Pacific. Its strategy to build scale and efficiency should be enhanced by the post-period end acquisition of Quantum Pharma for £150.3m. This could provide a further boost to its profitability in future years.

While Clinigen has a dividend yield of just 0.5% at the present time, its shareholder payouts are covered nine times by profit. This suggests there could be significant dividend growth ahead for the business. As it matures as a company, a greater proportion of profit is likely to be returned to its investors. This could not only boost income returns, but also signal confidence in the company's outlook, thereby providing a strong total return in future years.

Growth potential

Also offering high dividend growth prospects is Clipper Logistics(LSE: CLG). The company's two segments, value-added logistics and commercial vehicles, could offer upbeat earnings growth potential. In fact, the business is forecast to record a rise in its bottom line of 31% in the current year, followed by further growth of 21% next year.

Despite this positive outlook, it trades on a price-to-earnings growth (PEG) ratio of just 1. This suggests that its shares could move higher after their 7% rise in the last six months. And with the company having an excellent track record of profit growth following three years of consecutive double-digit growth, it may be worthy of a much higher valuation premium.

With Clipper Logistics having a dividend yield of 2.2%, it may not appear to be an attractive income play at the present time. However, dividend payments are expected to rise by 18% next year and even then, they are due to be covered almost twice by profit. This suggests that further double-digit dividend growth could be ahead for the company's investors.

Millionaire-makers

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Peter Stephens owns shares in Clinigen. The Motley Fool UK has recommended Clinigen. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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