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Dividend investing continues to be popular. This strategy focuses on companies that not only pay dividends but also consistently increase them over time. This approach offers a unique blend of income and growth potential, appealing to a broad range of investors, from those seeking steady income to those aiming for long-term capital appreciation. Additionally, it can provide a sense of security in times of market uncertainty or downturns.
In fact, 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 that have high yields. We have selected five dividend growth stocks — Leidos Holdings Inc.,Trane Technologies, Cabot Corp., Vertiv Holdings Co. and Charles River Associates — that could be solid choices for your portfolio.
Why 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 thus 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.
Here are five of the six stocks that fit the bill:
Delaware-based Leidos Holdings is a global science and technology leader that serves the defense, intelligence, civil and health markets. It has an estimated earnings growth rate of 22.9% for this year. It delivered an average earnings surprise of 23.49% in the past four quarters.
Ireland-based Trane Technologies is a designer, manufacturer, seller and servicer of climate control products for heating, ventilation, air conditioning and transport solutions. The stock saw a positive earnings estimate revision of 27 cents over the past 30 days for this year, with the expected earnings growth rate being 19%.
Trane Technologies has a Zacks Rank #2 and a Growth Score of B.
Massachusetts-based Cabot Corporation 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 Corporation saw a positive earnings estimate revision of 19 cents over the past 30 days for the fiscal year ending September 2024. The expected earnings growth rate is 29.5%.
Cabot Corporation has a Zacks Rank #2 and a Growth Score of A.
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 14 cents over the past month for this year. It has an estimated earnings growth rate of 45.8%.
Vertiv Holdings has a Zacks Rank #1 and a Growth Score of A.
Massachusetts-based Charles River is one of the leading global consulting firms. The company functions through a global network of coordinated offices across North America and Europe. The stock saw a positive earnings estimate revision of 56 cents over the past 30 days for this year. It has an expected earnings growth rate of 23.6%.
Charles River has a Zacks Rank #1 and a Growth Score of B.
You can get the remaining stock 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 Leidos, Trane, Cabot, Vertiv and Charles River
For Immediate Release
Chicago, IL – August 21, 2024 – Stocks in this week’s article are Leidos Holdings Inc. (LDOS - Free Report) , Trane Technologies (TT - Free Report) , Cabot Corp. (CBT - Free Report) , Vertiv Holdings Co. (VRT - Free Report) and Charles River Associates (CRAI - Free Report) .
5 Dividend Growth Stocks to Boost Your Portfolio
Dividend investing continues to be popular. This strategy focuses on companies that not only pay dividends but also consistently increase them over time. This approach offers a unique blend of income and growth potential, appealing to a broad range of investors, from those seeking steady income to those aiming for long-term capital appreciation. Additionally, it can provide a sense of security in times of market uncertainty or downturns.
In fact, 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 that have high yields. We have selected five dividend growth stocks — Leidos Holdings Inc.,Trane Technologies, Cabot Corp., Vertiv Holdings Co. and Charles River Associates — that could be solid choices for your portfolio.
Why 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 thus 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.
Here are five of the six stocks that fit the bill:
Delaware-based Leidos Holdings is a global science and technology leader that serves the defense, intelligence, civil and health markets. It has an estimated earnings growth rate of 22.9% for this year. It delivered an average earnings surprise of 23.49% in the past four quarters.
Leidos Holdings sports a Zacks Rank #1 and has a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ireland-based Trane Technologies is a designer, manufacturer, seller and servicer of climate control products for heating, ventilation, air conditioning and transport solutions. The stock saw a positive earnings estimate revision of 27 cents over the past 30 days for this year, with the expected earnings growth rate being 19%.
Trane Technologies has a Zacks Rank #2 and a Growth Score of B.
Massachusetts-based Cabot Corporation 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 Corporation saw a positive earnings estimate revision of 19 cents over the past 30 days for the fiscal year ending September 2024. The expected earnings growth rate is 29.5%.
Cabot Corporation has a Zacks Rank #2 and a Growth Score of A.
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 14 cents over the past month for this year. It has an estimated earnings growth rate of 45.8%.
Vertiv Holdings has a Zacks Rank #1 and a Growth Score of A.
Massachusetts-based Charles River is one of the leading global consulting firms. The company functions through a global network of coordinated offices across North America and Europe. The stock saw a positive earnings estimate revision of 56 cents over the past 30 days for this year. It has an expected earnings growth rate of 23.6%.
Charles River has a Zacks Rank #1 and a Growth Score of B.
You can get the remaining stock 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/2324206/5-dividend-growth-stocks-to-boost-your-portfolio
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.