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Time to Buy the Pullback in These 3 Highly Ranked Dividend Stocks
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Among the Zacks Rank #1 (Strong Buy) list, quite a few stocks are starting to stand out in regard to their affordability and generous dividends.
With representation from a variety of sectors, recent market volatility may have created a better buying opportunity in these highly ranked stocks as their attractive growth and valuations suggest more upside.
Hailing from the auto sector is Douglas Dynamics, a manufacturer and distributor of ice control and snow plow equipment for light trucks. Trading under $30, Douglas Dynamics' stock is at a reasonable 16.9X forward earnings multiple with high double-digit EPS growth in the forecast for fiscal 2024 and FY25.
Image Source: Zacks Investment Research
More importantly, is that earnings estimate revisions have remained higher over the last 60 days with it noteworthy that Douglas Dynamics’ Zacks Automotive-Replacement Parts Industry is in the top 3% of over 250 Zacks industries.
However, what separates Douglas Dynamics from its auto replacement part peers is its 4.29% annual dividend yield compared to the industry average of 1.98% and the S&P 500’s 1.28% average.
At $31 a share, Energizer’s stock looks compelling among the consumer staples sector as the iconic battery maker checks an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
Earnings estimate revisions are nicely up over the last 30 days with Energizer’s bottom line now expected to expand 6% this year and projected to increase another 8% in FY25 to $3.54 per share.
Image Source: Zacks Investment Research
The cherry on top is that Energizer's stock trades at just 9.7X forward earnings and its 3.75% annual dividend yield tops the S&P 500 and its Zacks Consumer Products-Staples Industry average of 2.6%.
Among financials, the recent pullback in Janus Henderson Group’s stock looks very opportunistic. JHG is 6% from its 52-week high of $39 a share in early August but is still sitting on +20% gains for the year. Providing financial investment management services, Janus Henderson is expected to post double-digit percentage growth on its top and bottom lines this year. Even better, the property and private equity advisor is slated to post single-digit earnings and sales growth in FY25.
Better still, Janus Henderson trades at 11.4X forward earnings with FY24 and FY25 EPS estimates spiking over 8% and 11% in the last 60 days respectively. Janus Henderson’s 4.26% annual dividend yield also tops the benchmark and its Zacks Financial-Investment Management Industry average of 2.39%.
Image Source: Zacks Investment Research
Bottom Line
With September known to bring unfavorable seasonality for the market, Douglas Dynamics, Energizer, and Janus Henderson's stock are worthy buy-the-dip candidates. This is especially true considering their attractive P/E valuations and the trend of positive earnings estimate revisions along with the generous dividends they provide.
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Time to Buy the Pullback in These 3 Highly Ranked Dividend Stocks
Among the Zacks Rank #1 (Strong Buy) list, quite a few stocks are starting to stand out in regard to their affordability and generous dividends.
With representation from a variety of sectors, recent market volatility may have created a better buying opportunity in these highly ranked stocks as their attractive growth and valuations suggest more upside.
Douglas Dynamics (PLOW - Free Report)
Hailing from the auto sector is Douglas Dynamics, a manufacturer and distributor of ice control and snow plow equipment for light trucks. Trading under $30, Douglas Dynamics' stock is at a reasonable 16.9X forward earnings multiple with high double-digit EPS growth in the forecast for fiscal 2024 and FY25.
Image Source: Zacks Investment Research
More importantly, is that earnings estimate revisions have remained higher over the last 60 days with it noteworthy that Douglas Dynamics’ Zacks Automotive-Replacement Parts Industry is in the top 3% of over 250 Zacks industries.
However, what separates Douglas Dynamics from its auto replacement part peers is its 4.29% annual dividend yield compared to the industry average of 1.98% and the S&P 500’s 1.28% average.
Image Source: Zacks Investment Research
Energizer (ENR - Free Report)
At $31 a share, Energizer’s stock looks compelling among the consumer staples sector as the iconic battery maker checks an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
Earnings estimate revisions are nicely up over the last 30 days with Energizer’s bottom line now expected to expand 6% this year and projected to increase another 8% in FY25 to $3.54 per share.
Image Source: Zacks Investment Research
The cherry on top is that Energizer's stock trades at just 9.7X forward earnings and its 3.75% annual dividend yield tops the S&P 500 and its Zacks Consumer Products-Staples Industry average of 2.6%.
Image Source: Zacks Investment Research
Janus Henderson Group (JHG - Free Report)
Among financials, the recent pullback in Janus Henderson Group’s stock looks very opportunistic. JHG is 6% from its 52-week high of $39 a share in early August but is still sitting on +20% gains for the year. Providing financial investment management services, Janus Henderson is expected to post double-digit percentage growth on its top and bottom lines this year. Even better, the property and private equity advisor is slated to post single-digit earnings and sales growth in FY25.
Better still, Janus Henderson trades at 11.4X forward earnings with FY24 and FY25 EPS estimates spiking over 8% and 11% in the last 60 days respectively. Janus Henderson’s 4.26% annual dividend yield also tops the benchmark and its Zacks Financial-Investment Management Industry average of 2.39%.
Image Source: Zacks Investment Research
Bottom Line
With September known to bring unfavorable seasonality for the market, Douglas Dynamics, Energizer, and Janus Henderson's stock are worthy buy-the-dip candidates. This is especially true considering their attractive P/E valuations and the trend of positive earnings estimate revisions along with the generous dividends they provide.