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Here are Five Growth Stocks That Pay Solid Dividends
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Soaring inflation rate and interest rate hikes topped the list of adversities that ruled the U.S. economy in 2022, resulting in volatile stock market performance. The Federal Reserve recently raised interest rate by 50 basis points to 4.25%-4.5% to curb inflation. The tightened monetary policy, looming fears of recession, the Russia-Ukraine conflict, rising commodity prices and supply-chain headwinds have compelled investors to look for safe and profitable investment options with growth potential.
Why Growth Stocks?
Growth stocks are a lucrative way to channelize the investments, as these stocks with above-average financial growth can easily capture the market's attention and generate higher returns. Investing in such stocks can fetch solid returns over the long and short run. Growth stocks include companies having the potential to exceed the overall market growth over time with higher profits and revenues.
With the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it much easier to find cutting-edge growth stocks.
Why Invest in Dividend-Paying Stocks?
Investors generally look for safe and profitable stocks apart from focusing on growth investments. This is easily catered by stocks that pay regular quarterly dividend as these have a stable profit stream with a strong balance sheet. Investing in dividend stocks is also appealing for investors seeking a regular income stream or making wealth by reinvesting dividend payments into capital accumulation. Traditionally, dividend stocks are low-risk investments and are safe to hold.
Apart from boosting profits and lowering portfolio risks for investors, dividend stocks offer fundamental analysis and tax advantages. Companies with high dividend yield, impressive payout ratio and sturdy earnings prospects can be great investment options for long-term returns.
DCP Midstream, LP : This CO-based company is a major energy infrastructure firm. DCP Midstream generates stable fee-based revenues, banking on its pipeline assets as well as mainly focuses on reinforcing its balance sheet with the priority of lowering debt load. In the six-month time, shares of this Zacks Rank #1 stock surged 35%.
The Zacks Consensus Estimate for DCP Midstream’s earnings per share for 2023 mirrors a year-over-year increase 10.7%. It has an estimated long-term earnings growth rate of 2% and Growth Score of A. The company pays out a quarterly dividend of 43 cents ($1.72 annualized) per share, with a 4.3% yield at the current stock price. DCP’s payout ratio is 32.4%, with a five-year annualized dividend growth rate of 11.2%. (Check DCP’s dividend history here)
Conagra Brands (CAG - Free Report) : The Chicago-based leading branded food company of North America is benefiting from its robust pricing actions, premium edible products and a refined focus on innovation. Conagra has been strongly committed to innovation, which is the key to the company’s success. Over the past six months, this Zacks Rank #2 company’s shares have rallied 16.4%.
The Zacks Consensus Estimate for Conagra’s sales and earnings per share for fiscal 2023 mirrors a year-over-year increase of 5.3% and 3.8%, respectively. It has an estimated long-term earnings growth rate of 7% and Growth Score of B. The company pays out a quarterly dividend of 33 cents ($1.32 annualized) per share, with a 3.4% yield at the current stock price. CAG’s payout ratio is 54.1%, with a five-year annualized dividend growth rate of 11.2%. (Check CAG’s dividend history here)
Entergy Corporation (ETR - Free Report) : The LA-based company is mainly engaged in electric power production and retail distribution of power. Apart from having a robust project pipeline, Entergy continues to make steady progress on adding renewable generation to its portfolio. Over the past six months, this Zacks Rank #2 company’s shares have climbed 9.1%.
The Zacks Consensus Estimate for Entergy’s sales and earnings per share for 2023 mirrors a year-over-year increase of 1.5% and 6%, respectively. It has an estimated long-term earnings growth rate of 6.8% and Growth Score of B. The company pays out a quarterly dividend of $1.07 ($4.28 annualized) per share, with a 3.6% yield at the current stock price. ETR’s payout ratio is 61.2%, with a five-year annualized dividend growth rate of 2.9%. (Check ETR’s dividend history here)
ONEOK, Inc. (OKE - Free Report) : This OK-based company is an energy company engaged in natural gas and natural gas liquids (NGL) businesses. The company has been gaining from higher volumes in its pipelines and fee-based commitments on higher production volumes. Its expansion initiatives have been reinforcing its position in the high-production region. In the six-month time frame, shares of this Zacks Rank #2 stock have jumped 20.8%.
The Zacks Consensus Estimate for ONEOK’s earnings per share for 2023 mirrors a year-over-year increase of 13.9%. It has an estimated long-term earnings growth rate of 8.5% and Growth Score of B. The company pays out a quarterly dividend of $94 ($3.76 annualized) per share, with a 5.8% yield at the current stock price. OKE’s payout ratio is 103.9%, with a five-year annualized dividend growth rate of 4.4%. (Check OKE’s dividend history here)
Phillips 66 (PSX - Free Report) : This TX-based company’s operations include processing, transportation, storing and marketing. Phillips 66 is the leading player in refining, chemicals and midstream in terms of size, efficiency and strength. The company has been expanding its potential in every business segment by streamlining the portfolio of assets and making investments in growth developments. In the six-month time frame, shares of this Zacks Rank #2 stock have increased 14.2%.
The Zacks Consensus Estimate for Phillips 66’s sales for 2023 mirrors a year-over-year increase of 10.1%. It has an estimated long-term earnings growth rate of 17.6% and Growth Score of A. The company pays out a quarterly dividend of $97 ($3.88 annualized) per share, with a 3.8% yield at the current stock price. PSX’s payout ratio is 21.9%, with a five-year annualized dividend growth rate of 5.6%. (Check PSX’s dividend history here)
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Here are Five Growth Stocks That Pay Solid Dividends
Soaring inflation rate and interest rate hikes topped the list of adversities that ruled the U.S. economy in 2022, resulting in volatile stock market performance. The Federal Reserve recently raised interest rate by 50 basis points to 4.25%-4.5% to curb inflation. The tightened monetary policy, looming fears of recession, the Russia-Ukraine conflict, rising commodity prices and supply-chain headwinds have compelled investors to look for safe and profitable investment options with growth potential.
Why Growth Stocks?
Growth stocks are a lucrative way to channelize the investments, as these stocks with above-average financial growth can easily capture the market's attention and generate higher returns. Investing in such stocks can fetch solid returns over the long and short run. Growth stocks include companies having the potential to exceed the overall market growth over time with higher profits and revenues.
With the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it much easier to find cutting-edge growth stocks.
Why Invest in Dividend-Paying Stocks?
Investors generally look for safe and profitable stocks apart from focusing on growth investments. This is easily catered by stocks that pay regular quarterly dividend as these have a stable profit stream with a strong balance sheet. Investing in dividend stocks is also appealing for investors seeking a regular income stream or making wealth by reinvesting dividend payments into capital accumulation. Traditionally, dividend stocks are low-risk investments and are safe to hold.
Apart from boosting profits and lowering portfolio risks for investors, dividend stocks offer fundamental analysis and tax advantages. Companies with high dividend yield, impressive payout ratio and sturdy earnings prospects can be great investment options for long-term returns.
Image Source: Zacks Investment Research
5 Solid Growth Bets Paying Dividends
With the help of the Zacks Stock Screener, we have narrowed upon five stocks with strong growth potential. Having a. These stocks also have a dividend yield of more than 3%, Growth Score of A or B, and a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DCP Midstream, LP : This CO-based company is a major energy infrastructure firm. DCP Midstream generates stable fee-based revenues, banking on its pipeline assets as well as mainly focuses on reinforcing its balance sheet with the priority of lowering debt load. In the six-month time, shares of this Zacks Rank #1 stock surged 35%.
DCP Midstream Partners, LP Dividend Yield (TTM)
DCP Midstream Partners, LP dividend-yield-ttm | DCP Midstream Partners, LP Quote
The Zacks Consensus Estimate for DCP Midstream’s earnings per share for 2023 mirrors a year-over-year increase 10.7%. It has an estimated long-term earnings growth rate of 2% and Growth Score of A. The company pays out a quarterly dividend of 43 cents ($1.72 annualized) per share, with a 4.3% yield at the current stock price. DCP’s payout ratio is 32.4%, with a five-year annualized dividend growth rate of 11.2%. (Check DCP’s dividend history here)
Conagra Brands (CAG - Free Report) : The Chicago-based leading branded food company of North America is benefiting from its robust pricing actions, premium edible products and a refined focus on innovation. Conagra has been strongly committed to innovation, which is the key to the company’s success. Over the past six months, this Zacks Rank #2 company’s shares have rallied 16.4%.
Conagra Brands Dividend Yield (TTM)
Conagra Brands dividend-yield-ttm | Conagra Brands Quote
The Zacks Consensus Estimate for Conagra’s sales and earnings per share for fiscal 2023 mirrors a year-over-year increase of 5.3% and 3.8%, respectively. It has an estimated long-term earnings growth rate of 7% and Growth Score of B. The company pays out a quarterly dividend of 33 cents ($1.32 annualized) per share, with a 3.4% yield at the current stock price. CAG’s payout ratio is 54.1%, with a five-year annualized dividend growth rate of 11.2%. (Check CAG’s dividend history here)
Entergy Corporation (ETR - Free Report) : The LA-based company is mainly engaged in electric power production and retail distribution of power. Apart from having a robust project pipeline, Entergy continues to make steady progress on adding renewable generation to its portfolio. Over the past six months, this Zacks Rank #2 company’s shares have climbed 9.1%.
Entergy Corporation Dividend Yield (TTM)
Entergy Corporation dividend-yield-ttm | Entergy Corporation Quote
The Zacks Consensus Estimate for Entergy’s sales and earnings per share for 2023 mirrors a year-over-year increase of 1.5% and 6%, respectively. It has an estimated long-term earnings growth rate of 6.8% and Growth Score of B. The company pays out a quarterly dividend of $1.07 ($4.28 annualized) per share, with a 3.6% yield at the current stock price. ETR’s payout ratio is 61.2%, with a five-year annualized dividend growth rate of 2.9%. (Check ETR’s dividend history here)
ONEOK, Inc. (OKE - Free Report) : This OK-based company is an energy company engaged in natural gas and natural gas liquids (NGL) businesses. The company has been gaining from higher volumes in its pipelines and fee-based commitments on higher production volumes. Its expansion initiatives have been reinforcing its position in the high-production region. In the six-month time frame, shares of this Zacks Rank #2 stock have jumped 20.8%.
ONEOK, Inc. Dividend Yield (TTM)
ONEOK, Inc. dividend-yield-ttm | ONEOK, Inc. Quote
The Zacks Consensus Estimate for ONEOK’s earnings per share for 2023 mirrors a year-over-year increase of 13.9%. It has an estimated long-term earnings growth rate of 8.5% and Growth Score of B. The company pays out a quarterly dividend of $94 ($3.76 annualized) per share, with a 5.8% yield at the current stock price. OKE’s payout ratio is 103.9%, with a five-year annualized dividend growth rate of 4.4%. (Check OKE’s dividend history here)
Phillips 66 (PSX - Free Report) : This TX-based company’s operations include processing, transportation, storing and marketing. Phillips 66 is the leading player in refining, chemicals and midstream in terms of size, efficiency and strength. The company has been expanding its potential in every business segment by streamlining the portfolio of assets and making investments in growth developments. In the six-month time frame, shares of this Zacks Rank #2 stock have increased 14.2%.
Phillips 66 Dividend Yield (TTM)
Phillips 66 dividend-yield-ttm | Phillips 66 Quote
The Zacks Consensus Estimate for Phillips 66’s sales for 2023 mirrors a year-over-year increase of 10.1%. It has an estimated long-term earnings growth rate of 17.6% and Growth Score of A. The company pays out a quarterly dividend of $97 ($3.88 annualized) per share, with a 3.8% yield at the current stock price. PSX’s payout ratio is 21.9%, with a five-year annualized dividend growth rate of 5.6%. (Check PSX’s dividend history here)