3 Stocks that Offer Growth and Income

Highlighted stocks include Target Corporation (TGT - Snapshot Report), DeVry (DV - Analyst Report) and The Buckle (BKE - Snapshot Report).

Holding stable large-cap names that reward shareholders with income should be staples in a well-diversified portfolio during any kind of market. So today, I decided to review some of our recent Growth and Income picks.

What to Expect with Growth and Income

Before I highlight recent Growth and Income picks, I would like to review what makes a stock a Growth and Income play.

Generally, a Growth and Income company will have healthy balance sheets, consistent dividend payments, quality products and services and experienced management teams. Usually Growth and Income companies are industry leaders, displaying steady earnings growth.

Companies that continually exhibit stable earnings growth, more than anything else, are ones that should hit the radar screens of Growth & Income investors. After all, companies exhibiting all of the characteristics mentioned earlier should have no problem producing a steady stream of profit growth. Analysts will subsequently grow more optimistic about the future earnings potential of the company and adjust their estimates up accordingly.

Growth & income investors get a dual benefit from following earnings estimate revisions. First, positive estimate revisions help investors buy shares in the companies with the best chances to outperform the market. Second, positive estimate revisions provide the easiest means to monitor the health of companies, providing a rather clear signal when the time has come to abandon ship. Companies experiencing upward estimate revisions will generally enjoy positive momentum going forward. Rarely will a stock suffer a significant price decline in the face of improving fundamentals. Add it all up and it’s clear that Growth and Income investors should only buy shares in companies enjoying upward earnings estimate revisions. The best way to harness this phenomenon is through the Zacks Rank.

Solid Growth and Income picks should carry a Zacks Rank of #1 (Strong Buy) or #2 (Buy). Check out the Guide to Growth and Income investing for more detailed information on this style of investing and the important role that the Zacks Rank plays in screening for Growth and Income stocks.

3 Recent Picks

Target Corporation (TGT - Snapshot Report) operates large-format general merchandise and food discount stores in the United States, which include Target and SuperTarget stores. They offer everyday essentials and fashionable, differentiated merchandise at exceptional prices.

Target recently announced first-quarter earnings of 69 cents per share, surpassing the consensus estimate by 15%. Sales of $14.4 billion came in above last year’s $14.3 billion. Check out the entire commentary on TGT.

DeVry (DV - Analyst Report) is the holding company for DeVry University, Ross University, Chamberlain College of Nursing and Becker Professional Review.

DeVry recently declared a semi-annual dividend of 8 cents per share, noting that it is payable July 9 to common stockholders of record as of June 16. The company offers an industry-leading dividend yield of 0.4%. Read the entire commentary on DV.

The Buckle (BKE - Snapshot Report) is a retailer of casual apparel, footwear, and accessories for young men and women in the United States. The company’s casual apparel products include denims, bottoms, tops, sportswear, and outerwear.

The Buckle recently reported a year-over-year increase of 18.2% in same-store store sales for the month of April. Net sales jumped 25.6% year-over-year. Take a look at the entire commentary on BKE.