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Zacks Investment Ideas feature highlights: Caterpillar, TJX and Lockheed Martin
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For Immediate Release
Chicago, IL – June 27, 2022 – Today, Zacks Investment Ideas feature highlights Caterpillar (CAT - Free Report) , The TJX Companies (TJX - Free Report) and Lockheed Martin (LMT - Free Report) .
Income Investing: 3 Companies Consistently Boosting Payouts
Investors love few things more than consistent, reliable dividend payouts. After all, who doesn’t love getting paid?
Of course, income-focused investors commonly gravitate toward stocks with a history of dividend growth, as the payouts can quickly add up.
Three companies – Caterpillar, The TJX Companies and Lockheed Martin – have all displayed a shareholder-friendly nature with a track record of increased payouts.
In addition, all three have enjoyed positive earnings estimate revisions, indicating near-term optimism among analysts. For those interested in reaping a passive income stream, let’s take a closer look at each.
Caterpillar
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The stock sports a Zacks Rank #1 (Strong Buy), with earnings estimates increasing across the board.
Caterpillar holds the rank of a Dividend Aristocrat, reflecting an unparalleled commitment to shareholders through 25+ years of increased payouts. Shares currently yield 2.1% annually, nicely above the Zacks Industrial Products sector average.
In addition, the company continues to buy back its shares at a rapid pace, another shareholder-friendly move. Just in 2022, Caterpillar authorized a sizable $15 billion share repurchase program.
The TJX Companies
The TJX Companies is a leading off-price apparel and home fashion retailer in the U.S. and worldwide. The company’s earnings outlook has improved across several timeframes, helping land it into a favorable Zacks Rank #2 (Buy).
TJX’s payout has grown by an impressive 11% over the last five years, with shares currently yielding 1.6% annually. Further, the company’s 37% payout ratio resides on the sustainable side.
The company continues to grow steadily, with estimates calling for 15% earnings growth on 7% higher revenues in its current fiscal year (FY24). And in FY25, earnings and revenue are forecasted to see growth of 10% and 5%, respectively.
TJX’s 62.8% trailing twelve-month return on equity is certainly worth highlighting as well, reflecting a higher efficiency level in generating profits from existing assets relative to its peers.
Lockheed Martin
Lockheed Martin is the largest defense contractor in the world. The company focuses on defense, space, intelligence, homeland security, information technology, and cyber security. The stock is presently a Zacks Rank #2 (Buy).
LMT shares currently yield a solid 2.6% annually. Reflecting its shareholder-friendly nature, the company has grown its payout by almost 9% over the last five years.
The defense titan has delivered better-than-expected results as of late, exceeding both earnings and revenue expectations in back-to-back releases. In fact, the average EPS surprise over the company’s last four quarters comes in at 7.5%.
Shares aren’t stretched regarding valuation, with the current 16.9X forward earnings multiple sitting modestly above the five-year median and well beneath the Zacks Aerospace/Defense industry average. The stock carries a Style Score of “B” for Value.
Bottom Line
Dividends provide a nice boost to any portfolio, helping to limit drawdowns in other positions and providing the opportunity for maximum returns through dividend reinvestment.
And all three companies above – Caterpillar, The TJX Companies, and Lockheed Martin – have fully reflected their shareholder-friendly nature through dividend growth.
In addition, all three sport a favorable Zacks Rank, indicating near-term optimism among analysts.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Caterpillar, TJX and Lockheed Martin
For Immediate Release
Chicago, IL – June 27, 2022 – Today, Zacks Investment Ideas feature highlights Caterpillar (CAT - Free Report) , The TJX Companies (TJX - Free Report) and Lockheed Martin (LMT - Free Report) .
Income Investing: 3 Companies Consistently Boosting Payouts
Investors love few things more than consistent, reliable dividend payouts. After all, who doesn’t love getting paid?
Of course, income-focused investors commonly gravitate toward stocks with a history of dividend growth, as the payouts can quickly add up.
Three companies – Caterpillar, The TJX Companies and Lockheed Martin – have all displayed a shareholder-friendly nature with a track record of increased payouts.
In addition, all three have enjoyed positive earnings estimate revisions, indicating near-term optimism among analysts. For those interested in reaping a passive income stream, let’s take a closer look at each.
Caterpillar
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The stock sports a Zacks Rank #1 (Strong Buy), with earnings estimates increasing across the board.
Caterpillar holds the rank of a Dividend Aristocrat, reflecting an unparalleled commitment to shareholders through 25+ years of increased payouts. Shares currently yield 2.1% annually, nicely above the Zacks Industrial Products sector average.
In addition, the company continues to buy back its shares at a rapid pace, another shareholder-friendly move. Just in 2022, Caterpillar authorized a sizable $15 billion share repurchase program.
The TJX Companies
The TJX Companies is a leading off-price apparel and home fashion retailer in the U.S. and worldwide. The company’s earnings outlook has improved across several timeframes, helping land it into a favorable Zacks Rank #2 (Buy).
TJX’s payout has grown by an impressive 11% over the last five years, with shares currently yielding 1.6% annually. Further, the company’s 37% payout ratio resides on the sustainable side.
The company continues to grow steadily, with estimates calling for 15% earnings growth on 7% higher revenues in its current fiscal year (FY24). And in FY25, earnings and revenue are forecasted to see growth of 10% and 5%, respectively.
TJX’s 62.8% trailing twelve-month return on equity is certainly worth highlighting as well, reflecting a higher efficiency level in generating profits from existing assets relative to its peers.
Lockheed Martin
Lockheed Martin is the largest defense contractor in the world. The company focuses on defense, space, intelligence, homeland security, information technology, and cyber security. The stock is presently a Zacks Rank #2 (Buy).
LMT shares currently yield a solid 2.6% annually. Reflecting its shareholder-friendly nature, the company has grown its payout by almost 9% over the last five years.
The defense titan has delivered better-than-expected results as of late, exceeding both earnings and revenue expectations in back-to-back releases. In fact, the average EPS surprise over the company’s last four quarters comes in at 7.5%.
Shares aren’t stretched regarding valuation, with the current 16.9X forward earnings multiple sitting modestly above the five-year median and well beneath the Zacks Aerospace/Defense industry average. The stock carries a Style Score of “B” for Value.
Bottom Line
Dividends provide a nice boost to any portfolio, helping to limit drawdowns in other positions and providing the opportunity for maximum returns through dividend reinvestment.
And all three companies above – Caterpillar, The TJX Companies, and Lockheed Martin – have fully reflected their shareholder-friendly nature through dividend growth.
In addition, all three sport a favorable Zacks Rank, indicating near-term optimism among analysts.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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/performance for information about the performance numbers displayed in this press release.