Finding stocks that will be winners in 2023 won’t be easy, but reliable income in your portfolio will help assist with market uncertainty.
Here are the two highest-ranked dividend aristocrat stocks going into the New Year.
Archer Daniels Midland (ADM - Free Report)
The first stock is no stranger to the Zacks Rank #1 (Strong Buy) list, with Archer Daniels Midland seeing rising earnings estimate revisions once again over the last week.
Archer Daniels is set to finish out a strong fiscal 2022, with earnings now projected to climb 44% to $7.47 per share. Fiscal 2023 earnings are expected to decline -15% after a very tough-to-compete-with year. However, FY23 estimates of $6.34 per share have climbed from $5.97 a share 90 days ago.
ADM’s positive bottom-line revisions come on top of an impeccable 2022 performance for the stock. ADM’s total 2022 return including dividends is +41% to crush the S&P 500’s -20%. Even better, this has topped the Agricultural Operations Market’s +23%.
It doesn’t stop there, ADM’s total return over the last decade is +354% to easily beat the benchmark and its Zack Subindustry’s +153%.
Dividend History: ADM has a 1.71% annual dividend yield at $1.60 a share. Archer Daniels’ dividend growth over the last five years is 4.12% with a payout ratio of 22%. The company has raised its dividend for 49 consecutive years.
Along with the reliable income, pricing power in the food commodities Archers Daniels produces such as corn and wheat continue to make ADM stock very attractive. The Agriculture Operations Industry is in the top 16% of over 250 Zacks Industries.
For Archer Daniels, the growth of its nutrition segment is intriguing with the company’s overall product portfolio very strong, making ADM a stolid investment for 2023 and beyond.
Caterpillar (CAT - Free Report)
Most areas of the economy are forecasted to see slower growth next year, making Caterpillar stand out. Caterpillar’s Manufacturing-Construction and Mining Industry is in the top 2% of all Zacks industries.
Caterpillar stock also sports a Zacks Rank #1 (Strong Buy) with earnings estimates rising over the last 30 days. Fiscal 2022 earnings are now projected to climb 28% and rise another 7% in FY23 at $14.90 per share.
Caterpillar’s YTD total return is +18% to impressively beat the S&P 500 and the Machinery Construction/Mining Market’s +15%. Over the last decade, CAT’s total return is +263%, edging out the benchmark and its Zacks Subindustry’s +217%.
Dividend History: CAT has a 2.02% annual dividend yield at $4.80 a share. Caterpillar’s dividend growth over the last five years is 8.94% with a payout ratio of 38%. The company has raised its dividend for 29 consecutive years.
Caterpillar’s growth continues to be stellar as the company improves on margins from higher demand for their construction and mining equipment.
Bottom Line
Archer Daniels Midland and Caterpillar stock look poised to be winners again in 2023. With the broader economy expected to see a mild recession next year these two stocks could continue to be a safe haven for investors and the rising earnings estimate revisions indicate its time to buy.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Finding stocks that will be winners in 2023 won’t be easy, but reliable income in your portfolio will help assist with market uncertainty.
Here are the two highest-ranked dividend aristocrat stocks going into the New Year.
Archer Daniels Midland (ADM - Free Report)
The first stock is no stranger to the Zacks Rank #1 (Strong Buy) list, with Archer Daniels Midland seeing rising earnings estimate revisions once again over the last week.
Archer Daniels is set to finish out a strong fiscal 2022, with earnings now projected to climb 44% to $7.47 per share. Fiscal 2023 earnings are expected to decline -15% after a very tough-to-compete-with year. However, FY23 estimates of $6.34 per share have climbed from $5.97 a share 90 days ago.
ADM’s positive bottom-line revisions come on top of an impeccable 2022 performance for the stock. ADM’s total 2022 return including dividends is +41% to crush the S&P 500’s -20%. Even better, this has topped the Agricultural Operations Market’s +23%.
It doesn’t stop there, ADM’s total return over the last decade is +354% to easily beat the benchmark and its Zack Subindustry’s +153%.
Dividend History: ADM has a 1.71% annual dividend yield at $1.60 a share. Archer Daniels’ dividend growth over the last five years is 4.12% with a payout ratio of 22%. The company has raised its dividend for 49 consecutive years.
Along with the reliable income, pricing power in the food commodities Archers Daniels produces such as corn and wheat continue to make ADM stock very attractive. The Agriculture Operations Industry is in the top 16% of over 250 Zacks Industries.
For Archer Daniels, the growth of its nutrition segment is intriguing with the company’s overall product portfolio very strong, making ADM a stolid investment for 2023 and beyond.
Caterpillar (CAT - Free Report)
Most areas of the economy are forecasted to see slower growth next year, making Caterpillar stand out. Caterpillar’s Manufacturing-Construction and Mining Industry is in the top 2% of all Zacks industries.
Caterpillar stock also sports a Zacks Rank #1 (Strong Buy) with earnings estimates rising over the last 30 days. Fiscal 2022 earnings are now projected to climb 28% and rise another 7% in FY23 at $14.90 per share.
Caterpillar’s YTD total return is +18% to impressively beat the S&P 500 and the Machinery Construction/Mining Market’s +15%. Over the last decade, CAT’s total return is +263%, edging out the benchmark and its Zacks Subindustry’s +217%.
Dividend History: CAT has a 2.02% annual dividend yield at $4.80 a share. Caterpillar’s dividend growth over the last five years is 8.94% with a payout ratio of 38%. The company has raised its dividend for 29 consecutive years.
Caterpillar’s growth continues to be stellar as the company improves on margins from higher demand for their construction and mining equipment.
Bottom Line
Archer Daniels Midland and Caterpillar stock look poised to be winners again in 2023. With the broader economy expected to see a mild recession next year these two stocks could continue to be a safe haven for investors and the rising earnings estimate revisions indicate its time to buy.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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