Yield-hungry investors have been pushing up prices for bonds and overpaying for mature dividend-paying stocks such as telcos and utilities. A wiser strategy might be to hunt for companies that pay modest dividends today, but are likely to increase them substantially.

To that end, take a look at Stella-Jones Inc. Despite its racy-sounding name, Stella-Jones operates in a dull industry. It sells treated wood products, mainly rail ties and utility poles. For dividend lovers, however, Stella may soon become the next hot thing.