![]() Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 or 2, offer the best upside potential. Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environments. ![]() Price/Cash Flow less than M-Industry: A ratio less than M-industry indicates that the stock is undervalued in that industry, and an investor needs to pay less for better cash flow generated by the company.ĥ2-Week Price Change greater than S&P 500 (Market Weight): This ensures that the stock has appreciated more than the S&P 500 over the past year. ![]() Improving earnings should help companies sustain dividend payments. Next 3-5 Year EPS Growth Rate greater than zero: This represents the rate at which a company’s earnings are expected to grow. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.Īlthough 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.Īs a result, picking dividend growth stocks appears as a winning strategy when some other parameters are included.ĥ-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history.ĥ-Year Historical Sales Growth greater than zero: This represents stocks with a strong record of growing revenues.ĥ-Year Historical EPS Growth greater than zero: This represents stocks with a solid earnings growth history. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. At the same time, these offer downside protection with their consistent increases in payouts.Īdditionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. 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. ( ARCO Quick Quote ARCO - Free Report) and Global Industrial Company ( GIC Quick Quote GIC - Free Report) - that seem excellent choices for your portfolio. ( IBP Quick Quote IBP - Free Report), Arcos Dorados Holdings Inc. ![]() ( PCAR Quick Quote PCAR - Free Report), Installed Building Products, Inc. We have selected five dividend growth stocks - Cboe Global Markets ( CBOE Quick Quote CBOE - Free Report), PACCAR Inc. 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. In particular, focusing on the growth level in this strategy leads to higher returns. This approach offers a unique blend of income and growth potential, appealing to a broad range of investors.Īdditionally, it can provide a sense of security in times of market uncertainty or downturns, as dividend-paying stocks can reduce the volatility of a portfolio and tend to outperform in a choppy market. Though the strategy doesn’t offer dramatic price appreciation, it is a major source of consistent income for investors in any type of market. Dividend investing remains a popular strategy.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |