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Zacks.com featured highlights include Boise Cascade, RCI Hospitality Holdings, Iron Mountain, McKesson and National Fuel Gas

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For Immediate Release

Chicago, IL – October 24, 2022 – Stocks in this week’s article are Boise Cascade (BCC - Free Report) , RCI Hospitality Holdings Inc. (RICK - Free Report) , Iron Mountain (IRM - Free Report) , McKesson Corp. (MCK - Free Report) and National Fuel Gas Co. (NFG - Free Report)

5 Solid Dividend Growth Stocks for Q4

Dividend investing is in vogue amid huge volatility and uncertainty. Persistently high inflation and Fed's aggressive rate hikes might push the economy into a recession and have been making investors jittery.

In such a scenario, dividends are major sources of consistent income for investors though they do not offer dramatic price appreciation. These stocks can reduce the volatility of a portfolio and tend to outperform in a choppy market.

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 — Boise Cascade, RCI Hospitality Holdings Inc., Iron Mountain , McKesson Corp. and National Fuel Gas Co. — 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 a 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 five of the 18 stocks that fit the bill:

Idaho-based Boise Cascade operates as a wood products manufacturer and building materials distributor. It has seen a solid earnings estimate revision of 42 cents for this year over the past month and has an expected earnings growth rate of 13.97%.

Boise Cascade has a Zacks Rank #1 and a Growth Score of B. You can see the complete list of today's Zacks #1 Rank stocks here.

Texas-based RCI Hospitality owns and operates adult nightclubs that offer live adult entertainment, restaurant and bar services. It saw a positive earnings estimate revision of 12 cents over the past 30 days for the fiscal year (ending Sep 2022) and has an expected earnings growth rate of 29.2%.

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

Massachusetts-based Iron Mountain provides records & information management services and data center space & solutions in 59 countries. It has estimated earnings growth of 37% for this year and delivered an average earnings surprise of 9.5% in the past four quarters.

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

California-based McKesson is a healthcare services and information technology company. The stock has estimated earnings growth of 3.04% for the fiscal year (ending March 2023) and delivered an average earnings surprise of 13% in the past four quarters.

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

New York-based National Fuel Gas is an integrated energy company, which has natural gas assets located in the prolific Appalachian basin and oil-producing assets in California. It has an estimated earnings growth rate of 38.5% for the fiscal year (ending September 2022) and delivered an average earnings surprise of 9.05% in the past four quarters.  

National Fuel Gas has a Zacks Rank #1 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.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1995499/5-solid-dividend-growth-stocks-for-q4

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

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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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