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5 Top Dividend Growth Stocks to Buy Amid Volatility
Volatility has taken the front seat this year, triggered off by a war in Ukraine, four-decade high inflation and a hawkish Fed, making investors jittery. In such a scenario, dividends are the major sources of consistent and safe income for investors 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 — Jones Lang LaSalle Inc., Target Corp., The Interpublic Group of Co., Diamondback Energy and Nutrien Ltd. — 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.
Moreover, a history of dividend growth year over year leads to a healthy portfolio with a greater scope of capital appreciation than simple dividend-paying stocks or those with high yields. 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 16 stocks that fit the bill:
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 a modest estimated earnings growth of 0.05% for this year and delivered an average earnings surprise of 125.40% in the past four quarters.
Minnesota-based Target Corp. has evolved from just being a pure brick-&-mortar retailer to an omni-channel entity. It has an estimated earnings growth of 6.71% for the fiscal year (ending January 2023) and delivered an average earnings surprise of 21.2% in the past four quarters.
Target has a Zacks Rank #2 and Growth Score of A.
New York-based Interpublic Group of Companies provides advertising and marketing services worldwide. The company specializes in consumer advertising, digital marketing, public relations, communications planning and media buying, and specialized communications disciplines. Interpublic Group of Companies has an estimated earnings growth of 3.5% for this year and delivered an average earnings surprise of 0.29% in the past four quarters.
Interpublic Group of Companies has a Zacks Rank #2 and Growth Score of A.
Texas-based Diamondback Energy Inc. is an independent oil and gas exploration & production company, with its primary focus on the Permian Basin. FANG saw solid earnings estimate revision of 96 cents over the past seven days for this year and has an estimated earnings growth rate of 105%.
Diamondback Energy has a Zacks Rank #2 and Growth Score of A.
Canada-based Nutrien Ltd. is a leading integrated provider of crop inputs and services. It supplies growers through its leading global Retail network and operates more than 2,000 retail locations across the United States, Canada, Australia and South America. NTR saw a positive earnings estimate revision of 62 cents over the past seven days for this year and has an expected earnings growth rate of 127.9%.
Nutrien Ltd has a Zacks Rank #1 and a Growth Score of A.
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.
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 >>.
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.
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/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights Jones Lang LaSalle, Target, The Interpublic Group, Diamondback Energy and Nutrien
For Immediate Release
Chicago, IL – April 26, 2022 – Stocks in this week’s article are Jones Lang LaSalle Inc. (JLL - Free Report) , Target Corp. (TGT - Free Report) , The Interpublic Group of Co. (IPG - Free Report) , Diamondback Energy (FANG - Free Report) and Nutrien Ltd. (NTR - Free Report) .
5 Top Dividend Growth Stocks to Buy Amid Volatility
Volatility has taken the front seat this year, triggered off by a war in Ukraine, four-decade high inflation and a hawkish Fed, making investors jittery. In such a scenario, dividends are the major sources of consistent and safe income for investors 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 — Jones Lang LaSalle Inc., Target Corp., The Interpublic Group of Co., Diamondback Energy and Nutrien Ltd. — 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.
Moreover, a history of dividend growth year over year leads to a healthy portfolio with a greater scope of capital appreciation than simple dividend-paying stocks or those with high yields. 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 16 stocks that fit the bill:
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 a modest estimated earnings growth of 0.05% for this year and delivered an average earnings surprise of 125.40% in the past four quarters.
Jones Lang has a Zacks Rank #1 and Growth Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
Minnesota-based Target Corp. has evolved from just being a pure brick-&-mortar retailer to an omni-channel entity. It has an estimated earnings growth of 6.71% for the fiscal year (ending January 2023) and delivered an average earnings surprise of 21.2% in the past four quarters.
Target has a Zacks Rank #2 and Growth Score of A.
New York-based Interpublic Group of Companies provides advertising and marketing services worldwide. The company specializes in consumer advertising, digital marketing, public relations, communications planning and media buying, and specialized communications disciplines. Interpublic Group of Companies has an estimated earnings growth of 3.5% for this year and delivered an average earnings surprise of 0.29% in the past four quarters.
Interpublic Group of Companies has a Zacks Rank #2 and Growth Score of A.
Texas-based Diamondback Energy Inc. is an independent oil and gas exploration & production company, with its primary focus on the Permian Basin. FANG saw solid earnings estimate revision of 96 cents over the past seven days for this year and has an estimated earnings growth rate of 105%.
Diamondback Energy has a Zacks Rank #2 and Growth Score of A.
Canada-based Nutrien Ltd. is a leading integrated provider of crop inputs and services. It supplies growers through its leading global Retail network and operates more than 2,000 retail locations across the United States, Canada, Australia and South America. NTR saw a positive earnings estimate revision of 62 cents over the past seven days for this year and has an expected earnings growth rate of 127.9%.
Nutrien Ltd has a Zacks Rank #1 and a Growth Score of A.
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/1906759/5-top-dividend-growth-stocks-to-buy-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 >>.
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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.
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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/performance for information about the performance numbers displayed in this press release.