Back to top

Analyst Blog

ManpowerGroup Inc. (MAN - Analyst Report), a leading provider of workforce solutions, is a promising option for investors seeking both growth and income. The company yesterday announced a dividend hike, which reflects its strong cash flow generation capability.

Milwaukee, Wisconsin-based ManpowerGroup hiked its semi-annual dividend by 7% to 49 cents per share. The dividend which is due on June 16, 2014 will be paid to stockholders of record as on June 2, 2014.

We believe that its continuous dividend payments and increments reflect the growth potential of its earnings and cash flow generation capabilities. The company shelled out $72 million in dividends in 2013.

Dividend hike is quiet frequent among companies with stable cash position. This seems to be the case for ManpowerGroup as the company ended the first quarter with cash and cash equivalents of $696.5 million.

Dividend hikes not only enhance shareholder’s return but raise the market value of the stock. Through this strategy, the companies bolster investors’ confidence on the stock, thereby persuading them to either buy or hold the scrip instead of selling them. Looking ahead, ManpowerGroup remains confident of its growth potential, suggesting enhanced value for shareholders.

Currently, ManpowerGroup carries a Zacks Rank #1 (Strong Buy), reflecting its positive earnings surprise streak. The company has beaten the Zacks Consensus Estimate by an average of 19.9% in the trailing four quarters. In the recently concluded quarter, the company posted earnings per share of 86 cents, which handily beat the Zacks Consensus Estimate of 67 cents and increased substantially year over year.

Some other better ranked stocks in the same sector include Robert Half International Inc. (RHI - Analyst Report), CTPartners Executive Search Inc. (CTP - Snapshot Report) Korn/Ferry International (KFY - Snapshot Report). All these carry a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%