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Wall Street has been on a blistering rally, with market rotation from the technology sector to the laggards being the latest theme. Though the Fed is expected to cut rates anytime soon, providing a considerable boost to the stock market, the U.S. presidential election in November will trigger volatility. Dividend investing will thus continue to be in vogue.
Though the strategy does not offer dramatic price appreciation, it is a major source of consistent income for investors in any market. In particular, focusing on the growth level in this strategy leads to higher returns. Stocks with a strong history of year-over-year dividend growth form a healthy portfolio with a greater scope of capital appreciation, as opposed to simple dividend-paying stocks or those with high yields.
We have selected five dividend growth stocks — Walmart Inc. , Agnico Eagle Mines Ltd., Booz Allen Hamilton Holding Corp., Vertiv Holdings Co and Cabot Corp. — that could be compelling picks.
Inside Dividend Growth Strategy
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market and act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.
Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
Just these few criteria narrowed down the universe from over 7,700 stocks to just 13.
Here are five of the 13 stocks that fit the bill:
Arkansas-based Walmart has evolved from being just a traditional brick-and-mortar retailer into an omnichannel player. It is engaged in the operation of retail, wholesale and other units worldwide. The company has an estimated earnings growth rate of 9.45% for the fiscal year ending January 2025 and delivered an average earnings surprise of 8.34% in the last four reported quarters.
Canada-based Agnico Eagle is a gold producer with mining operations in Canada, Mexico and Finland and exploration activities in Canada, Europe, Latin America and the United States. It saw a solid earnings estimate revision of 12 cents over the past seven days for the fiscal year ending January 2024. The company has an estimated earnings growth rate of 47.1%.
AEM currently has a Zacks Rank #2 and a Growth Score of A.
Virginia-based Booz Allen is a provider of management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber expertise to the United States and international governments, corporations and not-for-profit organizations. BAH has an estimated earnings growth rate of 10% for the fiscal year ending March 2025 and delivered an average earnings surprise of 12.47% in the past four quarters.
Currently, Booz Allen has a Zacks Rank #2 and a Growth Score of B.
Ohio-based Vertiv Holdings provides digital infrastructure and continuity solutions. It offers hardware, software, analytics and ongoing services. The company saw a positive earnings estimate revision of a couple of cents over the past month for this year and has an estimated earnings growth rate of 37.85%.
Vertiv Holdings has a Zacks Rank #2 and a Growth Score of A.
Morocco-based Cabot is a leading global specialty chemicals and performance materials company. The company offers a broad range of products and solutions, catering to major industries such as transportation, infrastructure, environment and consumer. Cabot has an expected earnings growth rate of 26.02% for the fiscal year ending September 2024 and delivered an average earnings surprise of 3.80% in the last four reported quarters.
Cabot has a Zacks Rank #2 and a Growth Score of A.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Walmart, Agnico Eagle, Booz Allen Hamilton, Vertiv and Cabot
For Immediate Release
Chicago, IL – July 18, 2024 – Stocks in this week’s article are Walmart Inc. (WMT - Free Report) , Agnico Eagle Mines Ltd. (AEM - Free Report) , Booz Allen Hamilton Holding Corp. (BAH - Free Report) , Vertiv Holdings Co (VRT - Free Report) and Cabot Corp. (CBT - Free Report) .
5 Stocks with a Solid History of Dividend Growth
Wall Street has been on a blistering rally, with market rotation from the technology sector to the laggards being the latest theme. Though the Fed is expected to cut rates anytime soon, providing a considerable boost to the stock market, the U.S. presidential election in November will trigger volatility. Dividend investing will thus continue to be in vogue.
Though the strategy does not offer dramatic price appreciation, it is a major source of consistent income for investors in any market. In particular, focusing on the growth level in this strategy leads to higher returns. Stocks with a strong history of year-over-year dividend growth form a healthy portfolio with a greater scope of capital appreciation, as opposed to simple dividend-paying stocks or those with high yields.
We have selected five dividend growth stocks — Walmart Inc. , Agnico Eagle Mines Ltd., Booz Allen Hamilton Holding Corp., Vertiv Holdings Co and Cabot Corp. — that could be compelling picks.
Inside Dividend Growth Strategy
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market and act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.
Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
Just these few criteria narrowed down the universe from over 7,700 stocks to just 13.
Here are five of the 13 stocks that fit the bill:
Arkansas-based Walmart has evolved from being just a traditional brick-and-mortar retailer into an omnichannel player. It is engaged in the operation of retail, wholesale and other units worldwide. The company has an estimated earnings growth rate of 9.45% for the fiscal year ending January 2025 and delivered an average earnings surprise of 8.34% in the last four reported quarters.
Presently, WMT has a Zacks Rank #2 and a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canada-based Agnico Eagle is a gold producer with mining operations in Canada, Mexico and Finland and exploration activities in Canada, Europe, Latin America and the United States. It saw a solid earnings estimate revision of 12 cents over the past seven days for the fiscal year ending January 2024. The company has an estimated earnings growth rate of 47.1%.
AEM currently has a Zacks Rank #2 and a Growth Score of A.
Virginia-based Booz Allen is a provider of management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber expertise to the United States and international governments, corporations and not-for-profit organizations. BAH has an estimated earnings growth rate of 10% for the fiscal year ending March 2025 and delivered an average earnings surprise of 12.47% in the past four quarters.
Currently, Booz Allen has a Zacks Rank #2 and a Growth Score of B.
Ohio-based Vertiv Holdings provides digital infrastructure and continuity solutions. It offers hardware, software, analytics and ongoing services. The company saw a positive earnings estimate revision of a couple of cents over the past month for this year and has an estimated earnings growth rate of 37.85%.
Vertiv Holdings has a Zacks Rank #2 and a Growth Score of A.
Morocco-based Cabot is a leading global specialty chemicals and performance materials company. The company offers a broad range of products and solutions, catering to major industries such as transportation, infrastructure, environment and consumer. Cabot has an expected earnings growth rate of 26.02% for the fiscal year ending September 2024 and delivered an average earnings surprise of 3.80% in the last four reported quarters.
Cabot has a Zacks Rank #2 and a Growth Score of A.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2303219/5-stocks-that-boast-solid-history-of-dividend-growth
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.