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Zacks.com featured highlights include Westlake, Boise Cascade, Target, Everest Re Group, and Progress Software
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For Immediate Release
Chicago, IL – May 12, 2022 – Stocks in this week’s article are One such method is selecting stocks with steady dividend growth. In this regard, stocks like Westlake Corp. (WLK - Free Report) , Boise Cascade (BCC - Free Report) , Target Corp. (TGT - Free Report) , Everest Re Group Ltd , and Progress Software (PRGS - Free Report) .
5 Dividend Growth Stocks to Buy at a Bargain
The stock market is struggling this year on Russia's invasion of Ukraine, skyrocketing inflation and Fed's rate hike. Many investors are therefore looking for safe and defensive bets, raising the appeal for dividend investing. Though it does not offer dramatic price appreciation, dividend stocks are a major source of consistent income for investors in any type of market. These stocks tend to outperform during volatile markets and can reduce the volatility of a portfolio.
In particular, focusing on the growth level in this strategy leads to higher returns. 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 — Westlake Corp., Boise Cascade, Target Corp.,Everest Re Group Ltd, and Progress Software — that could be compelling picks amid market volatility.
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 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.
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.
As a result, picking dividend growth stocks appears as a winning strategy when some other parameters are also included.
Here are the five of the 12 stocks that fit the bill:
Texas-based Westlake Corp. is a global producer and supplier of materials and innovative products. The company has a P/E ratio of 6.87 compared with the industry average of 7.02. Westlake delivered an average earnings surprise of 13.78% in the past four quarters.
Idaho-based Boise Cascade operates as a wood products manufacturer and building materials distributor. The company manufactures engineered wood products, plywood, lumber and particleboard and distributes wood products, such as decking, EWP, lumber, panel, particleboard, and MDF products. It has a P/E ratio of 5.05 compared with the industry average of 10.27 and delivered an average earnings surprise of 38.18% in the past four quarters.
Boise Cascade has a Zacks Rank #2 and Growth Score of A.
Minnesota-based Target operates as a general merchandise retailer in the United States. The company offers food assortments, including perishables, dry grocery, dairy, and frozen items; apparel, accessories, home décor products, electronics, toys, seasonal offerings, food, and other merchandise; and beauty and household essentials. The company has a P/E ratio of 15.48 compared with the industry average of 19.85. The stock saw earnings estimate revision of 8 cents over the past 30 days for the fiscal year (January 2023).
Target has a Zacks Rank #2 and Growth Score of A.
Bermuda-based Everest Re writes property and casualty, reinsurance and insurance in the United States, Bermuda and international markets. The stock has a P/E ratio of 8.39 compared with the industry average of 14.11 and delivered an average earnings surprise of 20.35% in the past four quarters.
Everest Re carries a Zacks Rank #2 and Growth Score of A.
Massachusetts-based Progress offers the leading platform for developing and deploying mission-critical business applications. It has a P/E ratio of 11.54 compared with the industry average of 29.47. Its earnings are expected to grow 4.6% in the fiscal year (ending Nov 2022).
Progress 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.
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/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Westlake, Boise Cascade, Target, Everest Re Group, and Progress Software
For Immediate Release
Chicago, IL – May 12, 2022 – Stocks in this week’s article are One such method is selecting stocks with steady dividend growth. In this regard, stocks like Westlake Corp. (WLK - Free Report) , Boise Cascade (BCC - Free Report) , Target Corp. (TGT - Free Report) , Everest Re Group Ltd , and Progress Software (PRGS - Free Report) .
5 Dividend Growth Stocks to Buy at a Bargain
The stock market is struggling this year on Russia's invasion of Ukraine, skyrocketing inflation and Fed's rate hike. Many investors are therefore looking for safe and defensive bets, raising the appeal for dividend investing. Though it does not offer dramatic price appreciation, dividend stocks are a major source of consistent income for investors in any type of market. These stocks tend to outperform during volatile markets and can reduce the volatility of a portfolio.
In particular, focusing on the growth level in this strategy leads to higher returns. 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 — Westlake Corp., Boise Cascade, Target Corp.,Everest Re Group Ltd, and Progress Software — that could be compelling picks amid market volatility.
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 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.
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.
As a result, picking dividend growth stocks appears as a winning strategy when some other parameters are also included.
Here are the five of the 12 stocks that fit the bill:
Texas-based Westlake Corp. is a global producer and supplier of materials and innovative products. The company has a P/E ratio of 6.87 compared with the industry average of 7.02. Westlake delivered an average earnings surprise of 13.78% in the past four quarters.
Westlake has a Zacks Rank #1 and Growth Score of B. You can see the complete list of today's Zacks #1 Rank stocks here.
Idaho-based Boise Cascade operates as a wood products manufacturer and building materials distributor. The company manufactures engineered wood products, plywood, lumber and particleboard and distributes wood products, such as decking, EWP, lumber, panel, particleboard, and MDF products. It has a P/E ratio of 5.05 compared with the industry average of 10.27 and delivered an average earnings surprise of 38.18% in the past four quarters.
Boise Cascade has a Zacks Rank #2 and Growth Score of A.
Minnesota-based Target operates as a general merchandise retailer in the United States. The company offers food assortments, including perishables, dry grocery, dairy, and frozen items; apparel, accessories, home décor products, electronics, toys, seasonal offerings, food, and other merchandise; and beauty and household essentials. The company has a P/E ratio of 15.48 compared with the industry average of 19.85. The stock saw earnings estimate revision of 8 cents over the past 30 days for the fiscal year (January 2023).
Target has a Zacks Rank #2 and Growth Score of A.
Bermuda-based Everest Re writes property and casualty, reinsurance and insurance in the United States, Bermuda and international markets. The stock has a P/E ratio of 8.39 compared with the industry average of 14.11 and delivered an average earnings surprise of 20.35% in the past four quarters.
Everest Re carries a Zacks Rank #2 and Growth Score of A.
Massachusetts-based Progress offers the leading platform for developing and deploying mission-critical business applications. It has a P/E ratio of 11.54 compared with the industry average of 29.47. Its earnings are expected to grow 4.6% in the fiscal year (ending Nov 2022).
Progress 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/1922509/5-dividend-growth-stocks-to-buy-at-a-bargain
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.
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.