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The Zacks Analyst Blog Highlights DCP Midstream, Conagra Brands, Entergy, ONEOK and Phillips 66
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For Immediate Release
Chicago, IL – December 23, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: DCP Midstream, LP , Conagra Brands (CAG - Free Report) , Entergy Corp. (ETR - Free Report) , ONEOK, Inc. (OKE - Free Report) and Phillips 66 (PSX - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
5 Growth Stocks That Pay Solid Dividends
Soaring inflation rate and interest rate hikes topped the list of adversities that ruled the U.S. economy in 2022, resulting in volatile stock market performance. The Federal Reserve recently raised the interest rate by 50 basis points to 4.25%-4.5% to curb inflation. The tightened monetary policy, looming fears of recession, the Russia-Ukraine conflict, rising commodity prices and supply-chain headwinds have compelled investors to look for safe and profitable investment options with growth potential.
Why Growth Stocks?
Growth stocks are a lucrative way to channelize the investments, as these stocks with above-average financial growth can easily capture the market's attention and generate higher returns. Investing in such stocks can fetch solid returns over the long and short run. Growth stocks include companies having the potential to exceed the overall market growth over time with higher profits and revenues.
With the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it much easier to find cutting-edge growth stocks.
Why Invest in Dividend-Paying Stocks?
Investors generally look for safe and profitable stocks apart from focusing on growth investments. This is easily catered by stocks that pay regular quarterly dividends as these have a stable profit stream with a strong balance sheet. Investing in dividend stocks is also appealing for investors seeking a regular income stream or making wealth by reinvesting dividend payments into capital accumulation. Traditionally, dividend stocks are low-risk investments and are safe to hold.
Apart from boosting profits and lowering portfolio risks for investors, dividend stocks offer fundamental analysis and tax advantages. Companies with high dividend yield, impressive payout ratio and sturdy earnings prospects can be great investment options for long-term returns.
DCP Midstream, LP: This CO-based company is a major energy infrastructure firm. DCP Midstream generates stable fee-based revenues, banking on its pipeline assets as well as mainly focuses on reinforcing its balance sheet with the priority of lowering debt load. In the six-month time, shares of this Zacks Rank #1 stock surged 35%.
The Zacks Consensus Estimate for DCP Midstream's earnings per share for 2023 mirrors a year-over-year increase of 10.7%. It has an estimated long-term earnings growth rate of 2% and Growth Score of A. The company pays out a quarterly dividend of 43 cents ($1.72 annualized) per share, with a 4.3% yield at the current stock price. DCP's payout ratio is 32.4%, with a five-year annualized dividend growth rate of 11.2%. (Check DCP's dividend history here)
Conagra Brands: The Chicago-based leading branded food company of North America is benefiting from its robust pricing actions, premium edible products and a refined focus on innovation. Conagra has been strongly committed to innovation, which is the key to the company's success. Over the past six months, this Zacks Rank #2 company's shares have rallied 16.4%.
The Zacks Consensus Estimate for Conagra's sales and earnings per share for fiscal 2023 mirrors a year-over-year increase of 5.3% and 3.8%, respectively. It has an estimated long-term earnings growth rate of 7% and Growth Score of B. The company pays out a quarterly dividend of 33 cents ($1.32 annualized) per share, with a 3.4% yield at the current stock price. CAG's payout ratio is 54.1%, with a five-year annualized dividend growth rate of 11.2%. (Check CAG's dividend history here)
Entergy Corp.: The LA-based company is mainly engaged in electric power production and retail distribution of power. Apart from having a robust project pipeline, Entergy continues to make steady progress on adding renewable generation to its portfolio. Over the past six months, this Zacks Rank #2 company's shares have climbed 9.1%.
The Zacks Consensus Estimate for Entergy's sales and earnings per share for 2023 mirrors a year-over-year increase of 1.5% and 6%, respectively. It has an estimated long-term earnings growth rate of 6.8% and Growth Score of B. The company pays out a quarterly dividend of $1.07 ($4.28 annualized) per share, with a 3.6% yield at the current stock price. ETR's payout ratio is 61.2%, with a five-year annualized dividend growth rate of 2.9%. (Check ETR's dividend history here)
ONEOK, Inc.: This OK-based company is an energy company engaged in natural gas and natural gas liquids (NGL) businesses. The company has been gaining from higher volumes in its pipelines and fee-based commitments on higher production volumes. Its expansion initiatives have been reinforcing its position in the high-production region. In the six-month time frame, shares of this Zacks Rank #2 stock have jumped 20.8%.
The Zacks Consensus Estimate for ONEOK's earnings per share for 2023 mirrors a year-over-year increase of 13.9%. It has an estimated long-term earnings growth rate of 8.5% and Growth Score of B. The company pays out a quarterly dividend of $94 ($3.76 annualized) per share, with a 5.8% yield at the current stock price. OKE's payout ratio is 103.9%, with a five-year annualized dividend growth rate of 4.4%. (Check OKE's dividend history here)
Phillips 66: This TX-based company's operations include processing, transportation, storing and marketing. Phillips 66 is the leading player in refining, chemicals and midstream in terms of size, efficiency and strength. The company has been expanding its potential in every business segment by streamlining the portfolio of assets and making investments in growth developments. In the six-month time frame, shares of this Zacks Rank #2 stock have increased 14.2%.
The Zacks Consensus Estimate for Phillips 66's sales for 2023 mirrors a year-over-year increase of 10.1%. It has an estimated long-term earnings growth rate of 17.6% and Growth Score of A. The company pays out a quarterly dividend of $97 ($3.88 annualized) per share, with a 3.8% yield at the current stock price. PSX's payout ratio is 21.9%, with a five-year annualized dividend growth rate of 5.6%. (Check PSX's dividend history here)
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights DCP Midstream, Conagra Brands, Entergy, ONEOK and Phillips 66
For Immediate Release
Chicago, IL – December 23, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: DCP Midstream, LP , Conagra Brands (CAG - Free Report) , Entergy Corp. (ETR - Free Report) , ONEOK, Inc. (OKE - Free Report) and Phillips 66 (PSX - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
5 Growth Stocks That Pay Solid Dividends
Soaring inflation rate and interest rate hikes topped the list of adversities that ruled the U.S. economy in 2022, resulting in volatile stock market performance. The Federal Reserve recently raised the interest rate by 50 basis points to 4.25%-4.5% to curb inflation. The tightened monetary policy, looming fears of recession, the Russia-Ukraine conflict, rising commodity prices and supply-chain headwinds have compelled investors to look for safe and profitable investment options with growth potential.
Why Growth Stocks?
Growth stocks are a lucrative way to channelize the investments, as these stocks with above-average financial growth can easily capture the market's attention and generate higher returns. Investing in such stocks can fetch solid returns over the long and short run. Growth stocks include companies having the potential to exceed the overall market growth over time with higher profits and revenues.
With the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it much easier to find cutting-edge growth stocks.
Why Invest in Dividend-Paying Stocks?
Investors generally look for safe and profitable stocks apart from focusing on growth investments. This is easily catered by stocks that pay regular quarterly dividends as these have a stable profit stream with a strong balance sheet. Investing in dividend stocks is also appealing for investors seeking a regular income stream or making wealth by reinvesting dividend payments into capital accumulation. Traditionally, dividend stocks are low-risk investments and are safe to hold.
Apart from boosting profits and lowering portfolio risks for investors, dividend stocks offer fundamental analysis and tax advantages. Companies with high dividend yield, impressive payout ratio and sturdy earnings prospects can be great investment options for long-term returns.
5 Solid Growth Bets Paying Dividends
With the help of the Zacks Stock Screener, we have narrowed upon five stocks with strong growth potential. Having a. These stocks also have a dividend yield of more than 3%, Growth Score of A or B, and a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
DCP Midstream, LP: This CO-based company is a major energy infrastructure firm. DCP Midstream generates stable fee-based revenues, banking on its pipeline assets as well as mainly focuses on reinforcing its balance sheet with the priority of lowering debt load. In the six-month time, shares of this Zacks Rank #1 stock surged 35%.
The Zacks Consensus Estimate for DCP Midstream's earnings per share for 2023 mirrors a year-over-year increase of 10.7%. It has an estimated long-term earnings growth rate of 2% and Growth Score of A. The company pays out a quarterly dividend of 43 cents ($1.72 annualized) per share, with a 4.3% yield at the current stock price. DCP's payout ratio is 32.4%, with a five-year annualized dividend growth rate of 11.2%. (Check DCP's dividend history here)
Conagra Brands: The Chicago-based leading branded food company of North America is benefiting from its robust pricing actions, premium edible products and a refined focus on innovation. Conagra has been strongly committed to innovation, which is the key to the company's success. Over the past six months, this Zacks Rank #2 company's shares have rallied 16.4%.
The Zacks Consensus Estimate for Conagra's sales and earnings per share for fiscal 2023 mirrors a year-over-year increase of 5.3% and 3.8%, respectively. It has an estimated long-term earnings growth rate of 7% and Growth Score of B. The company pays out a quarterly dividend of 33 cents ($1.32 annualized) per share, with a 3.4% yield at the current stock price. CAG's payout ratio is 54.1%, with a five-year annualized dividend growth rate of 11.2%. (Check CAG's dividend history here)
Entergy Corp.: The LA-based company is mainly engaged in electric power production and retail distribution of power. Apart from having a robust project pipeline, Entergy continues to make steady progress on adding renewable generation to its portfolio. Over the past six months, this Zacks Rank #2 company's shares have climbed 9.1%.
The Zacks Consensus Estimate for Entergy's sales and earnings per share for 2023 mirrors a year-over-year increase of 1.5% and 6%, respectively. It has an estimated long-term earnings growth rate of 6.8% and Growth Score of B. The company pays out a quarterly dividend of $1.07 ($4.28 annualized) per share, with a 3.6% yield at the current stock price. ETR's payout ratio is 61.2%, with a five-year annualized dividend growth rate of 2.9%. (Check ETR's dividend history here)
ONEOK, Inc.: This OK-based company is an energy company engaged in natural gas and natural gas liquids (NGL) businesses. The company has been gaining from higher volumes in its pipelines and fee-based commitments on higher production volumes. Its expansion initiatives have been reinforcing its position in the high-production region. In the six-month time frame, shares of this Zacks Rank #2 stock have jumped 20.8%.
The Zacks Consensus Estimate for ONEOK's earnings per share for 2023 mirrors a year-over-year increase of 13.9%. It has an estimated long-term earnings growth rate of 8.5% and Growth Score of B. The company pays out a quarterly dividend of $94 ($3.76 annualized) per share, with a 5.8% yield at the current stock price. OKE's payout ratio is 103.9%, with a five-year annualized dividend growth rate of 4.4%. (Check OKE's dividend history here)
Phillips 66: This TX-based company's operations include processing, transportation, storing and marketing. Phillips 66 is the leading player in refining, chemicals and midstream in terms of size, efficiency and strength. The company has been expanding its potential in every business segment by streamlining the portfolio of assets and making investments in growth developments. In the six-month time frame, shares of this Zacks Rank #2 stock have increased 14.2%.
The Zacks Consensus Estimate for Phillips 66's sales for 2023 mirrors a year-over-year increase of 10.1%. It has an estimated long-term earnings growth rate of 17.6% and Growth Score of A. The company pays out a quarterly dividend of $97 ($3.88 annualized) per share, with a 3.8% yield at the current stock price. PSX's payout ratio is 21.9%, with a five-year annualized dividend growth rate of 5.6%. (Check PSX's dividend history here)
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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/performance for information about the performance numbers displayed in this press release.