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A FTSE 100 dividend growth stock that I’d buy today and hold for the next 20 years

Investment prospects of the FTSE 100 continue to be relatively impressive. The index may have enjoyed a 10-year bull run, but still seems to offer excellent value for money. For example, it trades at less than 10% above its level from the dot.com era, while a 4% dividend yield suggests that it may offer a wide margin of safety.

Within the FTSE 100, there appear to be a number of dividend growth shares which could be worth buying. Here’s a prime example of a stock that could offer an improving income outlook, which may be worth holding over the long run.

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Growth potential

The company in question is global consumer goods business Reckitt Benckiser (LSE: RB). It has a relatively strong track record of earnings growth, with its bottom line rising in each of the last four years. During that time, earnings have risen at an annualised rate of 9%, which suggests that it’s found a successful strategy to deliver an improving financial performance.

Looking ahead, further growth could be on the cards for the business. Its exposure to emerging markets could help to catalyse its financial prospects. In China, for example, its recent acquisition of Mead Johnson could provide access to the lucrative infant formula marketplace, where growth potential is likely to be high. And with it enjoying a high degree of customer loyalty across its stable of brands, its overall growth outlook appears to be positive.

Reckitt Benckiser recently undertook a restructuring which seems to have created a more efficient business for the long run. It may have a dividend yield of only 2.6%, but with dividends being covered twice by profit, they seem to have scope to rise rapidly, longer term.

Improving prospects

Also offering the potential to generate high returns in the long run is AIM-listed media stock Next Fifteen (LSE: NFC). It reported impressive half-year results on Tuesday, which highlighted its growth potential. Revenue grew by 14%, with organic revenue moving 8.7% higher. Adjusted profit before tax increased by 26% to £15.1m, with the company registering several major client wins during the period.

The pace of change in the marketing sector has remained high during the period. As a result, the company is focused on adapting to changing consumer tastes, with the focus on digital channels and mobile platforms. It also intends to grow organically and to engage in further M&A activity, should it be required.

With Next Fifteen having a strong position in a number of key markets, it appears well-placed to generate impressive long-term growth. Its bottom line is due to rise by 8% in the next financial year, which suggests that it has a bright medium-term outlook. With the world economy set to perform well over the next few years, it could be a strong performer.

There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it!

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Peter Stephens owns shares of Reckitt Benckiser. The Motley Fool UK has recommended Next Fifteen Communications. 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.