Back to top

Image: Shutterstock

Zacks.com featured highlights include The Kroger, NVIDIA, Jones Lang LaSalle, Paychex and McKesson

Read MoreHide Full Article

For Immediate Release

Chicago, IL – April 8, 2022 – Stocks in this week’s article are The Kroger Co. (KR - Free Report) , NVIDIA Corp. (NVDA - Free Report) , Jones Lang LaSalle Inc. (JLL - Free Report) , Paychex Inc. (PAYX - Free Report) and McKesson Corp. (MCK - Free Report) .

5 Dividend Growth Stocks for Safe Income Amid Volatility

Dividend investing has been in vogue amid bouts of volatility and uncertainty triggered by the ongoing conflict in Ukraine and its inflationary effect on prices. This is especially true as these are major sources of consistent income for investors in any type of market though they do not offer dramatic price appreciation.

In fact, 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. We have selected five dividend growth stocks — The Kroger Co., NVIDIA Corp., Jones Lang LaSalle Inc., Paychex Inc., and McKesson Corp. — that could be compelling picks amid market volatility.

Dividend Growth: A Winning 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 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 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 the five of the 17 stocks that fit the bill:

Ohio-based The Kroger operates as a retailer in the United States. The company operates a combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. The stock saw a positive earnings estimate revision of 21 cents for fiscal year (ending January 2023) and has an expected earnings growth rate of 2.4%.

Kroger has a Zacks Rank #1 and Growth Score of B. You can see the complete list of today's Zacks #1 Rank stocks here.

California-based NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. The stock has an expected earnings growth rate of 25% for the fiscal year (ending January 2023) and delivered a four-quarter average earnings surprise of 7.04%.

NVIDIA has a Zacks Rank #2 and a Growth Score of B.

Chicago-based Jones Lang is a leading full-service real estate firm that provides corporate, financial and investment management services to corporations and other real estate owners, users and investors worldwide. Jones Lang has seen positive earnings estimate revision by 27 cents over the past month for this year with an expected modest earnings growth rate of 0.05%.  

Jones Lang has a Zacks Rank #1 and Growth Score of A.

New York-based Paychex is one of the leading providers of integrated human capital management solutions for payroll, human resource, retirement, and insurance services for small- to medium-sized businesses. The stock saw a solid earnings estimate revision of 11 cents for the fiscal year (ending May 2022) over the past 30 days and has an expected earnings growth rate of 23.36%.

Paychex has a Zacks Rank #2 and a Growth Score of B.

California-based McKesson is a health care services and information technology company. The stock has an expected earnings growth rate of 39% for the fiscal year (ending March 2022) and delivered a four-quarter average earnings surprise of 20.6%.

McKesson has a Zacks Rank #2 and Growth Score of B.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1894671/5-dividend-growth-stocks-for-safe-income-amid-volatility

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.

layed in this press release.

Published in