We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Dividend Growth Stocks to Buy for an Historically Weak September
Wall Street is off to a poor start in September on renewed concerns about the health of the economy and the stock market's historical performance. Amid such a backdrop, investors are increasingly exploring strategies that will help them to protect their portfolios from downside risk. And nothing seems better than the strategy of dividend investing.
Picking stocks with a history of dividend growth leads to 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 — Vertiv Holdings Co., Charles River Associates, Cabot Corp., Leidos Holdings Inc. and HCA Healthcare Inc. — that could be solid buys for a historically weak September.
Delving Into the 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 11 stocks that fit the bill:
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%.
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 37 cents over the past 30 days for this year. It has an expected earnings growth rate of 26.9%.
Charles River has a Zacks Rank #1 and a Growth Score of B.
Massachusetts-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 saw a positive earnings estimate revision of 29 cents over the past 30 days for the fiscal year ending September 2024. The expected earnings growth rate is 31.4%.
Cabot has a Zacks Rank #2 and a Growth Score of A.
Delaware-based Leidos Holdings is a global science and technology leader that serves the defense, intelligence, civil and health markets. It saw a positive earnings estimate revision of 17 cents over the past 30 days for this year and has an estimated earnings growth rate of 22.6%.
Leidos Holdings has a Zacks Rank #2 and a Growth Score of B.
Tennessee-based HCA Healthcare is the largest non-governmental operator of acute care hospitals in the United States. The company saw a positive earnings estimate revision of 13 cents over the past 30 days for this year, with an estimated earnings growth rate of 17.4%.
HCA Healthcare has a Zacks Rank #1 and a Growth Score of B.
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.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks.com featured highlights include Vertiv, Charles River Associates, Cabot, Leidos and HCA Healthcare
For Immediate Release
Chicago, IL – September 6, 2024 – Stocks in this week’s article are Vertiv Holdings Co. (VRT - Free Report) , Charles River Associates (CRAI - Free Report) , Cabot Corp. (CBT - Free Report) , Leidos Holdings Inc. (LDOS - Free Report) and HCA Healthcare Inc. (HCA - Free Report) .
5 Dividend Growth Stocks to Buy for an Historically Weak September
Wall Street is off to a poor start in September on renewed concerns about the health of the economy and the stock market's historical performance. Amid such a backdrop, investors are increasingly exploring strategies that will help them to protect their portfolios from downside risk. And nothing seems better than the strategy of dividend investing.
Picking stocks with a history of dividend growth leads to 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 — Vertiv Holdings Co., Charles River Associates, Cabot Corp., Leidos Holdings Inc. and HCA Healthcare Inc. — that could be solid buys for a historically weak September.
Delving Into the 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 11 stocks that fit the bill:
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. You can see the complete list of today's Zacks #1 Rank stocks here.
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 37 cents over the past 30 days for this year. It has an expected earnings growth rate of 26.9%.
Charles River has a Zacks Rank #1 and a Growth Score of B.
Massachusetts-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 saw a positive earnings estimate revision of 29 cents over the past 30 days for the fiscal year ending September 2024. The expected earnings growth rate is 31.4%.
Cabot has a Zacks Rank #2 and a Growth Score of A.
Delaware-based Leidos Holdings is a global science and technology leader that serves the defense, intelligence, civil and health markets. It saw a positive earnings estimate revision of 17 cents over the past 30 days for this year and has an estimated earnings growth rate of 22.6%.
Leidos Holdings has a Zacks Rank #2 and a Growth Score of B.
Tennessee-based HCA Healthcare is the largest non-governmental operator of acute care hospitals in the United States. The company saw a positive earnings estimate revision of 13 cents over the past 30 days for this year, with an estimated earnings growth rate of 17.4%.
HCA Healthcare has a Zacks Rank #1 and a Growth Score of B.
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/2331942/5-dividend-growth-stocks-to-buy-in-historically-weak-september
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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/performancefor information about the performance numbers displayed in this press release.