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3 Top-Ranked Dividend Aristocrats to Invest in December
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U.S. stocks suffered on Nov 30, with all three major bourses closing in the red after Fed Chair Jerome Powell indicated that the central bank might consider withdrawing monthly asset purchases as the threat of inflation increases. Powell’s hawkish remarks built pressure on the stock market, which was already affected by the omicron variant of coronavirus and its impact on the broader economy. Notably, the Dow and the S&P 500 closed in the negative territory for the month of November.
Thus, to fend off the current market volatility, it’s imperative for investors to place bets on dividend aristocrats, for their risk-adjusted returns, in December. Some of the solid choices are Genuine Parts (GPC - Free Report) , Target (TGT - Free Report) and A. O. Smith (AOS - Free Report) .
How the Benchmarks Performed
On Nov 30, the Dow and the S&P 500 slipped 1.9% each, while the tech-laden Nasdaq dropped 1.6%. To put things into perspective, all the 11 sectors of the S&P 500 ended in the red. Communication services declined the most, followed by utilities.
For the month of November, the Dow and the S&P 500 declined 3.7% and 0.8%, respectively. Meanwhile, the Nasdaq eked out gains. But, Black Friday’s omicron-inspired selloff dragged Nasdaq down considerably from its recent highs.
What’s Impacting the Markets?
Recently, in testimony before the Senate Banking Committee, Powell said that he no longer considers inflationary pressure as “transitory” and that he considers speeding up the tapering process.
Powell’s remarks raised speculation among investors about acceleration in interest rate hikes in the near future, resulting in gyration in the markets. After all, it’s the Fed’s accommodative policy that helped stocks chug along so far amid the pandemic.
Powell’s shift in tone somehow caught the market off-guard. At the same time, investors remained anxious about the spread of omicron, leading to government restrictions and its potential impact on economic growth. Moderna has already raised doubts about the vaccines’ effectiveness on the variant.
3 of the Best Dividend Aristocrats to Buy Now
Given the aforesaid headwinds, the stock market is expected to gyrate in the month of December as it did in November. Hence, it’s wise for investors to invest in dividend aristocrats. They are unperturbed by any market volatility and, at the same time, boast solid fundamentals. These companies have increased dividends for a considerable period of time and are known to have a better-quality business. These stocks also possess a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Genuine Parts Company is widely known for distributing auto replacement parts across many countries. It also distributes industrial replacement parts as well. Genuine Parts has made some commendable strategic buyouts to expand its geographical footprint.
Genuine Parts presently has a dividend yield of 2.45%. The company has raised its dividend for a staggering 65 successive years. The Zacks Consensus Estimate for its current-year earnings has moved up 4.8% over the past 60 days. Genuine Parts’ expected earnings growth rate for the current year is 27.3%.
Target is now an omnichannel entity. The company, to keep pace with the changing retail landscape, has made a considerable investment in technologies and has modernized the supply chain.
Target, at present, has a dividend yield of 1.44%. What’s more, Target has raised its dividend for 49 consecutive years. The Zacks Consensus Estimate for its current-year earnings has moved up 2.8% over the past 60 days. Target’s expected earnings growth rate for the current year is 39.9%.
A. O. Smith is known for manufacturing both residential and commercial water heating equipment. A. O. Smith is benefiting from its capital deployment strategy and robust liquidity position.
A. O. Smith currently has a dividend yield of 1.39%. It also has raised its dividend for 26 successive years. In fact, A. O. Smith has raised its dividend in the past five-year period at a CAGR of above 22%.
The Zacks Consensus Estimate for its current-year earnings has moved up 5.8% over the past 60 days. A. O. Smith’s expected earnings growth rate for the current year is 35.2%.
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3 Top-Ranked Dividend Aristocrats to Invest in December
U.S. stocks suffered on Nov 30, with all three major bourses closing in the red after Fed Chair Jerome Powell indicated that the central bank might consider withdrawing monthly asset purchases as the threat of inflation increases. Powell’s hawkish remarks built pressure on the stock market, which was already affected by the omicron variant of coronavirus and its impact on the broader economy. Notably, the Dow and the S&P 500 closed in the negative territory for the month of November.
Thus, to fend off the current market volatility, it’s imperative for investors to place bets on dividend aristocrats, for their risk-adjusted returns, in December. Some of the solid choices are Genuine Parts (GPC - Free Report) , Target (TGT - Free Report) and A. O. Smith (AOS - Free Report) .
How the Benchmarks Performed
On Nov 30, the Dow and the S&P 500 slipped 1.9% each, while the tech-laden Nasdaq dropped 1.6%. To put things into perspective, all the 11 sectors of the S&P 500 ended in the red. Communication services declined the most, followed by utilities.
For the month of November, the Dow and the S&P 500 declined 3.7% and 0.8%, respectively. Meanwhile, the Nasdaq eked out gains. But, Black Friday’s omicron-inspired selloff dragged Nasdaq down considerably from its recent highs.
What’s Impacting the Markets?
Recently, in testimony before the Senate Banking Committee, Powell said that he no longer considers inflationary pressure as “transitory” and that he considers speeding up the tapering process.
Powell’s remarks raised speculation among investors about acceleration in interest rate hikes in the near future, resulting in gyration in the markets. After all, it’s the Fed’s accommodative policy that helped stocks chug along so far amid the pandemic.
Powell’s shift in tone somehow caught the market off-guard. At the same time, investors remained anxious about the spread of omicron, leading to government restrictions and its potential impact on economic growth. Moderna has already raised doubts about the vaccines’ effectiveness on the variant.
3 of the Best Dividend Aristocrats to Buy Now
Given the aforesaid headwinds, the stock market is expected to gyrate in the month of December as it did in November. Hence, it’s wise for investors to invest in dividend aristocrats. They are unperturbed by any market volatility and, at the same time, boast solid fundamentals. These companies have increased dividends for a considerable period of time and are known to have a better-quality business. These stocks also possess a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Genuine Parts Company is widely known for distributing auto replacement parts across many countries. It also distributes industrial replacement parts as well. Genuine Parts has made some commendable strategic buyouts to expand its geographical footprint.
Genuine Parts presently has a dividend yield of 2.45%. The company has raised its dividend for a staggering 65 successive years. The Zacks Consensus Estimate for its current-year earnings has moved up 4.8% over the past 60 days. Genuine Parts’ expected earnings growth rate for the current year is 27.3%.
Target is now an omnichannel entity. The company, to keep pace with the changing retail landscape, has made a considerable investment in technologies and has modernized the supply chain.
Target, at present, has a dividend yield of 1.44%. What’s more, Target has raised its dividend for 49 consecutive years. The Zacks Consensus Estimate for its current-year earnings has moved up 2.8% over the past 60 days. Target’s expected earnings growth rate for the current year is 39.9%.
A. O. Smith is known for manufacturing both residential and commercial water heating equipment. A. O. Smith is benefiting from its capital deployment strategy and robust liquidity position.
A. O. Smith currently has a dividend yield of 1.39%. It also has raised its dividend for 26 successive years. In fact, A. O. Smith has raised its dividend in the past five-year period at a CAGR of above 22%.
The Zacks Consensus Estimate for its current-year earnings has moved up 5.8% over the past 60 days. A. O. Smith’s expected earnings growth rate for the current year is 35.2%.