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Zacks Investment Ideas feature highlights: Emerson Electric, 3M and Sysco
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For Immediate Release
Chicago, IL – August 29, 2022 – Today, Zacks Investment Ideas feature highlights Emerson Electric (EMR - Free Report) , 3M (MMM - Free Report) and Sysco Corp. (SYY - Free Report) .
3 Dividend Kings Income Investors Will Love
It's very common for investors to park their hard-earned cash in assets that generate income. After all, few things in life are sweeter than getting paid, especially when the payout comes from your investments.
Investors are familiar with Dividend Aristocrats, companies that have successfully increased their dividend payout for 25 consecutive years. However, there's an even more elite group of dividend payers known as Dividend Kings.
To achieve the attractive title of a Dividend King, a company must increase its dividend payout for a mind-boggling 50 consecutive years.
Companies that consistently increase their dividend payouts enjoy a well-established nature paired with highly-successful business operations, and Dividend Kings are precisely that.
Three companies – Emerson Electric, 3M and Sysco Corp.– are all Dividend Kings. Below is a chart illustrating the YTD share performance of all three companies with the S&P 500 blended in as a benchmark.
Let's take a closer look at each company to see why they suit income investors perfectly.
3M
3M manufactures various products, including abrasives, adhesive tape products, and consumer-electronics components. The company carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
Undoubtedly impressive, 3M has increased its dividend payout in 66 consecutive years, making it a senior member of the elite Dividend King group.
3M's annual dividend yield sits at a sizable 4.2%, much higher than the S&P 500's 1.4% annual yield. In addition, the company carries a five-year annualized dividend growth rate of a strong 4% paired with a payout ratio sitting at 60% of earnings.
3M's forward earnings multiple resides at 13.7X, nowhere near its five-year median of 19.1X and representing an attractive 27% discount relative to the S&P 500.
The company carries a Style Score of a B for Value.
3M's bottom-line growth is also worth highlighting – earnings are forecasted to climb 3% year-over-year in FY22 and an additional 5% in FY23.
Emerson Electric
Emerson Electric is a global technology and engineering company providing innovative solutions for customers in industrial, commercial, and residential markets. The company sports a Zacks Rank #3 (Hold) paired with an overall VGM Score of a B.
Similar to 3M, Emerson Electric is a senior member of the Dividend King Group – EMR has upped its dividend payout in a remarkable 65 consecutive years.
Emerson rewards shareholders via its annual dividend that yields a rock-solid 2.3%, much higher than its Zacks Industrial Products Sector average of 1.6%. In addition, the company rocks a five-year annualized dividend growth rate of 1.5% paired with a payout ratio sitting sustainably at 42% of earnings.
The company's 17.3X forward P/E ratio is a tad above its Zacks Sector average but is still nowhere near its five-year median of 20.4X. EMR carries a Style Score of a B for Value.
For Emerson's current fiscal year, the Zacks Consensus EPS Estimate of $5.10 reflects a stellar 25% Y/Y uptick in earnings. And in FY23, the company's bottom-line looks to add an additional 6% of growth.
Sysco
Sysco markets and distributes a range of food and related products primarily to the food service or food-away-from-home industry. As it stands, the company is a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
Sysco is a somewhat newer addition to the elite Dividend King club, increasing its dividend in 54 consecutive years.
SYY's annual dividend yield sits nicely at 2.3%, just below its Zacks Consumer Staples Sector average of 2.5%. In addition, the company carries a sizable 8.7% five-year annualized dividend growth rate paired with a payout ratio sitting at 60% of earnings.
Sysco shares trade at a 20.5X forward earnings multiple, nicely below their five-year median of 21.7X and representing a slight 1% discount relative to its Zacks Sector. The company sports a Style Score of a B for Value.
Undoubtedly impressive, the Zacks Consensus EPS Estimate of $4.19 reflects a staggering 30% Y/Y uptick in earnings. Looking ahead, the company's bottom-line is projected to expand a further 13% in FY23.
Bottom Line
Investors seeking a stream of reliable income should take a serious look at Dividend Kings, companies that have successfully upped their dividend payouts for at least 50 consecutive years.
Any company that joins the elite group is undoubtedly impressive, displaying its commitment to shareholders and its well-rounded nature. With such strict parameters to join the club, you can bet that only the best of the best have made it in.
All three companies above – Emerson Electric, 3M and Sysco – are members of the elite group, speaking volumes regarding their highly-successful nature.
Why Haven't You Looked at Zacks' Top Stocks?
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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/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Emerson Electric, 3M and Sysco
For Immediate Release
Chicago, IL – August 29, 2022 – Today, Zacks Investment Ideas feature highlights Emerson Electric (EMR - Free Report) , 3M (MMM - Free Report) and Sysco Corp. (SYY - Free Report) .
3 Dividend Kings Income Investors Will Love
It's very common for investors to park their hard-earned cash in assets that generate income. After all, few things in life are sweeter than getting paid, especially when the payout comes from your investments.
Investors are familiar with Dividend Aristocrats, companies that have successfully increased their dividend payout for 25 consecutive years. However, there's an even more elite group of dividend payers known as Dividend Kings.
To achieve the attractive title of a Dividend King, a company must increase its dividend payout for a mind-boggling 50 consecutive years.
Companies that consistently increase their dividend payouts enjoy a well-established nature paired with highly-successful business operations, and Dividend Kings are precisely that.
Three companies – Emerson Electric, 3M and Sysco Corp.– are all Dividend Kings. Below is a chart illustrating the YTD share performance of all three companies with the S&P 500 blended in as a benchmark.
Let's take a closer look at each company to see why they suit income investors perfectly.
3M
3M manufactures various products, including abrasives, adhesive tape products, and consumer-electronics components. The company carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
Undoubtedly impressive, 3M has increased its dividend payout in 66 consecutive years, making it a senior member of the elite Dividend King group.
3M's annual dividend yield sits at a sizable 4.2%, much higher than the S&P 500's 1.4% annual yield. In addition, the company carries a five-year annualized dividend growth rate of a strong 4% paired with a payout ratio sitting at 60% of earnings.
3M's forward earnings multiple resides at 13.7X, nowhere near its five-year median of 19.1X and representing an attractive 27% discount relative to the S&P 500.
The company carries a Style Score of a B for Value.
3M's bottom-line growth is also worth highlighting – earnings are forecasted to climb 3% year-over-year in FY22 and an additional 5% in FY23.
Emerson Electric
Emerson Electric is a global technology and engineering company providing innovative solutions for customers in industrial, commercial, and residential markets. The company sports a Zacks Rank #3 (Hold) paired with an overall VGM Score of a B.
Similar to 3M, Emerson Electric is a senior member of the Dividend King Group – EMR has upped its dividend payout in a remarkable 65 consecutive years.
Emerson rewards shareholders via its annual dividend that yields a rock-solid 2.3%, much higher than its Zacks Industrial Products Sector average of 1.6%. In addition, the company rocks a five-year annualized dividend growth rate of 1.5% paired with a payout ratio sitting sustainably at 42% of earnings.
The company's 17.3X forward P/E ratio is a tad above its Zacks Sector average but is still nowhere near its five-year median of 20.4X. EMR carries a Style Score of a B for Value.
For Emerson's current fiscal year, the Zacks Consensus EPS Estimate of $5.10 reflects a stellar 25% Y/Y uptick in earnings. And in FY23, the company's bottom-line looks to add an additional 6% of growth.
Sysco
Sysco markets and distributes a range of food and related products primarily to the food service or food-away-from-home industry. As it stands, the company is a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
Sysco is a somewhat newer addition to the elite Dividend King club, increasing its dividend in 54 consecutive years.
SYY's annual dividend yield sits nicely at 2.3%, just below its Zacks Consumer Staples Sector average of 2.5%. In addition, the company carries a sizable 8.7% five-year annualized dividend growth rate paired with a payout ratio sitting at 60% of earnings.
Sysco shares trade at a 20.5X forward earnings multiple, nicely below their five-year median of 21.7X and representing a slight 1% discount relative to its Zacks Sector. The company sports a Style Score of a B for Value.
Undoubtedly impressive, the Zacks Consensus EPS Estimate of $4.19 reflects a staggering 30% Y/Y uptick in earnings. Looking ahead, the company's bottom-line is projected to expand a further 13% in FY23.
Bottom Line
Investors seeking a stream of reliable income should take a serious look at Dividend Kings, companies that have successfully upped their dividend payouts for at least 50 consecutive years.
Any company that joins the elite group is undoubtedly impressive, displaying its commitment to shareholders and its well-rounded nature. With such strict parameters to join the club, you can bet that only the best of the best have made it in.
All three companies above – Emerson Electric, 3M and Sysco – are members of the elite group, speaking volumes regarding their highly-successful nature.
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.
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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/performancefor information about the performance numbers displayed in this press release.