Back to top

Image: Bigstock

Zacks.com featured highlights include TotalEnergies, J.B. Hunt Transport Services, Archer-Daniels-Midland , McKesson and Republic Services

Read MoreHide Full Article

For Immediate Release

Chicago, IL – September 1, 2022 – Stocks in this week’s article are TotalEnergies SE (TTE - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) , Archer-Daniels-Midland Co. (ADM - Free Report) , McKesson Corp. (MCK - Free Report) and Republic Services Inc. (RSG - Free Report) .

5 Dividend-Growth Stocks to Beat a September Slump

September is historically the worst month for stocks due to a seasonal phenomenon. This is because investors are more prone to selling than buying when they return from their summer vacations, trading volume after Labor Day is mostly bearish, many mutual funds have their fiscal year ending Sep 30, window-dressing is rampant, and investors generally sell stocks to pay tuition bills for their kids' private schools and colleges.

Against this backdrop, investing in dividend stocks seems like the best strategy. Investors can enjoy rising current income while anticipating capital appreciation irrespective of market conditions. In fact, honing in on stocks with a history of dividend growth leads to a healthy portfolio, with a greater scope of capital appreciation as opposed to simple dividend-paying stocks or those with high yields.

We have selected five dividend growth stocks — TotalEnergies SE, J.B. Hunt Transport Services Archer-Daniels-Midland Co., McKesson Corp. and Republic Services Inc. — that could be solid picks to beat the September slump.

Why Dividend Growth?

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. 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 a dividend hike is likely in the future.

Furthermore, these have a long history of outperformance over the long term. However, it does not necessarily mean that they have the highest yields.

Here are five of the 22 stocks that fit the bill:

France-based TotalEnergies is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. It has seen solid earnings estimate revision of 18 cents over the past 30 days for this year and has an estimated earnings growth rate of 107%.  

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

Arkansas-based J.B. Hunt is a provider of a broad range of transportation services to a diverse group of customers throughout the United States, Canada and Mexico. JBHT saw a positive earnings estimate revision of a couple of cents over the past 30 days for this year and has an expected earnings growth rate of 34.2%.

J.B. Hunt has a Zacks Rank #2 and Growth Score of A.

Illinois-based Archer-Daniels is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. ADM has seen solid earnings estimate revision of 6 cents for this year and has an expected earnings growth rate of 30.2%.

Archer-Daniels has a Zacks Rank #2 and Growth Score of A.

California-based McKesson is a health care services and information technology company. The stock has seen a solid earnings estimate revision of 99 cents over the past 30 days for the fiscal year (ending March 2023) and has an expected earnings growth rate of 2.4%.

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

Arizona-based Republic Services is the second largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services in the United States. It has seen an upward earnings estimate revision of 11 cents for this year over the past month and has an estimated earnings growth rate of 14.6%.

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

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1974429/5-dividend-growth-stocks-to-beat-september-slump

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.

Published in