Back to top

Image: Bigstock featured highlights Boise Cascade, Triton International, TotalEnergies, McKesson and RCI Hospitality Holdings

Read MoreHide Full Article

For Immediate Release

Chicago, IL – September 16, 2022 – Stocks in this week’s article are Boise Cascade (BCC - Free Report) , Triton International Ltd. (TRTN - Free Report) , TotalEnergies SE (TTE - Free Report) , McKesson Corp. (MCK - Free Report) and RCI Hospitality Holdings Inc. (RICK - Free Report) .

5 Dividend Growth Stocks to Buy Cheap

Volatility and uncertainty in the stock market have increased following hotter-than-expected inflation data. The data sparked fears of more aggressive rate hikes by the Fed that would continue to weigh on economic growth and resulted in the biggest stock bloodbath in two years.

As such, dividend investing seems prudent to fight the current market turmoil. The strategy is a major source of consistent income for investors in any type of market but does not offer dramatic price appreciation. In particular, focusing on the growth level in this strategy leads to higher returns.

Stocks with a strong history of dividend growth year over year 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 — Boise Cascade, Triton International Ltd., TotalEnergies SE, McKesson Corp. and RCI Hospitality Holdings Inc. — that are compelling picks.

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 thus 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.

Here are five of the 12 stocks that fit the bill:

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. Boise Cascade has a P/E ratio of 2.95 compared with the industry average of 8.20. It delivered an average earnings surprise of 27.14% in the past four quarters.

Boise Cascade has a Zacks Rank #2 and a Growth Score of B. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Bermuda-based Triton International is the largest lessor of intermodal containers (large steel boxes that are used for transporting freight by ship/rail/truck). TRTN has a P/E ratio of 5.38 compared with the industry average of 9.76. Its earnings are estimated to grow 22.4%.

Triton International has a Zacks Rank #2 and a Growth Score of B.

France-based TotalEnergies is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. It has a P/E ratio of 3.57 compared with the industry average of 5.66 and has an estimated earnings growth rate of 108.5%.

TotalEnergies has a Zacks Rank #2 and a Growth Score of A.

California-based McKesson is a health care services and information technology company. The stock has seen solid earnings estimate revision of 20 cents over the past 30 days for the fiscal year (ending March 2023). McKesson has a P/E ratio of 14.35 compared with the industry average of 18.85.

McKesson has a Zacks Rank #2 and a Growth Score of B.

Texas-based RCI Hospitality owns and/or operates adult nightclubs that offer live adult entertainment, restaurant, and bar services. It has a P/E ratio of 13.25 compared with the industry average of 19.34 and has an estimated earnings growth rate of 26.2% for the fiscal year (Sep 2022).

RCI Hospitality has a Zacks Rank #2 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 at:

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 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 >>.

Follow us on Twitter:

Join us on Facebook:

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


Phone: 312-265-9268


Visit: 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.

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 for information about the performance numbers displayed in this press release.

Published in