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3 Business Services Stocks With Impressive Dividend Yield
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The Business Services sector has been steadily gathering steam on the back of gradual resumption of business activities, increased adoption and success of the work-from-home model, rise in demand for risk mitigation and consulting services, and expertise in improving operational efficiency and reducing costs. Providers of essential and non-deferrable services, such as waste removal and building maintenance, remained resilient to the pandemic-induced disruptions.
Because of its widely-diversified nature, the sector was broadly aided by the recovering economy, manufacturing and non-manufacturing strength, and increased vaccination drives. While Omicron and Delta variant cases have raised concerns lately, manufacturing and service strength acted as a tailwind for the sector, which is a major beneficiary of the broader economy. Notably, the Institute for Supply Management measured that both Manufacturing PMI and Services PMI clocked the 20th consecutive month of expansion in January.
Meanwhile, a steady recovery is evident from the latest fourth-quarter 2021 GDP number, which according to the "second" estimate released by the Bureau of Economic Analysis, increased at an annual rate of 7%, higher than 2.3% growth witnessed in third-quarter 2021.
In view of the aforementioned favorable trends, a few business services firms such as Trane Technologies plc (TT - Free Report) , Verisk Analytics, Inc.(VRSK - Free Report) andThe Interpublic Group of Companies, Inc. (IPG - Free Report) have chosen to reward their shareholders with dividend hikes. We believe consistency in rewarding shareholders through dividend payments or share repurchases not only boost investor confidence but also positively impact a company’s earnings per share.
Trane Technologies: This Ireland-based company has increased its quarterly dividend rate by 14% from 59 cents per share to 67 cents per share. The increased dividend will be paid out on Mar 31, 2022 to shareholders of record at the close of business on Mar 4.
Trane Technologies remains focused on improving the quality of its products and services and operating efficiencies to achieve sustained improvement in earnings and cash flow. It prioritizes improving its business operating system and innovation through business transformation initiatives and prudent investments. Trane has a track record of repurchasing shares and paying dividends consistently.
The Zacks Consensus Estimate for Trane Technologies’ 2022 EPS has moved up 0.4% in the past 90 days. The company’s expected earnings growth rate for the year is 15.6%. Additionally, it has a long-term (three to five years) expected earnings growth rate of 18.6%. The company has a trailing four-quarter earnings surprise of 16.1%, on average.
Trane Technologies plc Price, Consensus and EPS Surprise
Verisk: This New Jersey-based data analytics solutions’ provider company has hiked its quarterly dividend by 6.9% from 29 cents per share to 31 cents per share. The increased dividend will be paid on Mar 31, 2022, to shareholders of record as of Mar 15, 2022.
Strength across all the segments has been aiding Verisk’s top line. The company has a robust growth strategy that focuses on organic growth, product development and acquisitions. Verisk’s expertise in providing predictive data analytics and decision support solutions provides it an edge over its competitors. The company has been acquiring and investing in companies globally in order to expand its data and analytics capabilities. Organic growth within the business, lower interest expenses, effective tax rate and average share count have been aiding Verisk’s bottom line.
The Zacks Consensus Estimate for Verisk’s 2022 EPS has moved up 0.8% in the past 90 days. The company’s expected earnings growth rate for the year is 11.3%. Additionally, it has a long-term (three to five years) expected earnings growth rate of 12%. Verisk’s shares have rallied 7.5% over the past year.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Interpublic: This New York-based provider of advertising and marketing services announced a dividend hike of 7%, thereby raising its quarterly cash dividend from 27 cents per share to 29 cents.
Interpublic's digital capabilities, diverse workforce and geographic reach offer a distinctive competitive advantage. It has been acquiring and investing in companies globally, in order to expand its product portfolio and adjust itself with the rapidly changing marketing services and media prospects. The favorable impact of organic net revenues and foreign currency movements have been aiding Interpublic’s top line.
The Zacks Consensus Estimate for Interpublic’s 2022 EPS has moved up 1.5% in the past 90 days. The company’s expected earnings growth rate for the year is 3.5%. Additionally, it has a long-term (three to five years) expected earnings growth rate of 11.8%. The company has a trailing four-quarter earnings surprise of 66.9%, on average. Interpublic’s shares have rallied 39.9% over the past year.
Interpublic Group of Companies, Inc. The Price, Consensus and EPS Surprise
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3 Business Services Stocks With Impressive Dividend Yield
The Business Services sector has been steadily gathering steam on the back of gradual resumption of business activities, increased adoption and success of the work-from-home model, rise in demand for risk mitigation and consulting services, and expertise in improving operational efficiency and reducing costs. Providers of essential and non-deferrable services, such as waste removal and building maintenance, remained resilient to the pandemic-induced disruptions.
Because of its widely-diversified nature, the sector was broadly aided by the recovering economy, manufacturing and non-manufacturing strength, and increased vaccination drives. While Omicron and Delta variant cases have raised concerns lately, manufacturing and service strength acted as a tailwind for the sector, which is a major beneficiary of the broader economy. Notably, the Institute for Supply Management measured that both Manufacturing PMI and Services PMI clocked the 20th consecutive month of expansion in January.
Meanwhile, a steady recovery is evident from the latest fourth-quarter 2021 GDP number, which according to the "second" estimate released by the Bureau of Economic Analysis, increased at an annual rate of 7%, higher than 2.3% growth witnessed in third-quarter 2021.
In view of the aforementioned favorable trends, a few business services firms such as Trane Technologies plc (TT - Free Report) , Verisk Analytics, Inc.(VRSK - Free Report) andThe Interpublic Group of Companies, Inc. (IPG - Free Report) have chosen to reward their shareholders with dividend hikes. We believe consistency in rewarding shareholders through dividend payments or share repurchases not only boost investor confidence but also positively impact a company’s earnings per share.
All the three stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Companies That Rewarded Shareholders
Trane Technologies: This Ireland-based company has increased its quarterly dividend rate by 14% from 59 cents per share to 67 cents per share. The increased dividend will be paid out on Mar 31, 2022 to shareholders of record at the close of business on Mar 4.
Trane Technologies remains focused on improving the quality of its products and services and operating efficiencies to achieve sustained improvement in earnings and cash flow. It prioritizes improving its business operating system and innovation through business transformation initiatives and prudent investments. Trane has a track record of repurchasing shares and paying dividends consistently.
The Zacks Consensus Estimate for Trane Technologies’ 2022 EPS has moved up 0.4% in the past 90 days. The company’s expected earnings growth rate for the year is 15.6%. Additionally, it has a long-term (three to five years) expected earnings growth rate of 18.6%. The company has a trailing four-quarter earnings surprise of 16.1%, on average.
Trane Technologies plc Price, Consensus and EPS Surprise
Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote
Verisk: This New Jersey-based data analytics solutions’ provider company has hiked its quarterly dividend by 6.9% from 29 cents per share to 31 cents per share. The increased dividend will be paid on Mar 31, 2022, to shareholders of record as of Mar 15, 2022.
Strength across all the segments has been aiding Verisk’s top line. The company has a robust growth strategy that focuses on organic growth, product development and acquisitions. Verisk’s expertise in providing predictive data analytics and decision support solutions provides it an edge over its competitors. The company has been acquiring and investing in companies globally in order to expand its data and analytics capabilities. Organic growth within the business, lower interest expenses, effective tax rate and average share count have been aiding Verisk’s bottom line.
The Zacks Consensus Estimate for Verisk’s 2022 EPS has moved up 0.8% in the past 90 days. The company’s expected earnings growth rate for the year is 11.3%. Additionally, it has a long-term (three to five years) expected earnings growth rate of 12%. Verisk’s shares have rallied 7.5% over the past year.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Verisk Analytics, Inc. price-consensus-eps-surprise-chart | Verisk Analytics, Inc. Quote
Interpublic: This New York-based provider of advertising and marketing services announced a dividend hike of 7%, thereby raising its quarterly cash dividend from 27 cents per share to 29 cents.
Interpublic's digital capabilities, diverse workforce and geographic reach offer a distinctive competitive advantage. It has been acquiring and investing in companies globally, in order to expand its product portfolio and adjust itself with the rapidly changing marketing services and media prospects. The favorable impact of organic net revenues and foreign currency movements have been aiding Interpublic’s top line.
The Zacks Consensus Estimate for Interpublic’s 2022 EPS has moved up 1.5% in the past 90 days. The company’s expected earnings growth rate for the year is 3.5%. Additionally, it has a long-term (three to five years) expected earnings growth rate of 11.8%. The company has a trailing four-quarter earnings surprise of 66.9%, on average. Interpublic’s shares have rallied 39.9% over the past year.
Interpublic Group of Companies, Inc. The Price, Consensus and EPS Surprise
Interpublic Group of Companies, Inc. The price-consensus-eps-surprise-chart | Interpublic Group of Companies, Inc. The Quote