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Several companies have been delivering positive news to shareholders lately, such as dividend increases.
When a company opts to raise its dividend, it indicates confidence in its current standing and future prospects. In addition, it reflects the company’s commitment to returning value to shareholders, which is undoubtedly encouraging.
Three companies – American Electric Power (AEP - Free Report) , EOG Resources (EOG - Free Report) , and Hubbell (HUBB - Free Report) – have all recently declared a dividend hike. For those with an appetite for income, let’s take a closer look at how each company currently stacks up.
American Electric Power
American Electric Power Company is a public utility holding company that generates, transmits, and distributes electricity, natural gas, and other commodities. The company recently declared a 6% hike to its quarterly payout.
Shares got a boost post-earnings following its latest release, representing the first positive reaction in several quarters.
Image Source: Zacks Investment Research
AEP shares presently yield a sizable 4.2% annually, nicely above the respective Zacks Utilities sector average. Reflecting its commitment to shareholders, the company’s payout has grown by nearly 6% annually over the last five years.
Please note that the chart below is on an annual basis.
Image Source: Zacks Investment Research
EOG Resources
EOG Resources is engaged primarily in the exploration, development, and production of oil and natural gas, with operations spread across the United States. Earnings expectations have moved higher across the board.
Image Source: Zacks Investment Research
EOG shares currently yield a solid 2.6% annually paired with a sustainable payout ratio sitting at 27% of the company’s earnings. Impressively, EOG boasts a 37% five-year annualized dividend growth rate, recently upping its quarterly payout by 10.3%.
In addition, EOG shares recently bounced nicely off their 200-day daily moving average upon a re-test, a level that previously was met with resistance. With shares now heading back to this level, it’ll be worthwhile for investors to wait and see if they can deliver another bounce.
Image Source: Zacks Investment Research
Hubbell
Hubbell is a top international manufacturer of high-quality and reliable utility and electrical solutions. The company recently boosted its quarterly payout by 9%.
Analysts have been notably bullish on the company’s current year outlook, with the $15.34 Zacks Consensus EPS Estimate up nearly 40% over the last year. Impressively, the value reflects 44% growth in earnings year-over-year.
Image Source: Zacks Investment Research
Like those above, the company has a history of increasingly rewarding its shareholders, carrying a 7% five-year annualized dividend growth rate. Shares currently yield 1.6% annually, in line with its respective Zacks Industrial Products sector average.
Bottom Line
Targeting dividend-paying stocks is an excellent strategy that investors can deploy.
Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment.
And all three companies above – American Electric Power (AEP - Free Report) , EOG Resources (EOG - Free Report) , and Hubbell (HUBB - Free Report) – have recently boosted their payouts.
For those seeking a reliable income stream, all three deserve consideration.
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Dividend Watch: 3 Companies Boosting Payouts
Several companies have been delivering positive news to shareholders lately, such as dividend increases.
When a company opts to raise its dividend, it indicates confidence in its current standing and future prospects. In addition, it reflects the company’s commitment to returning value to shareholders, which is undoubtedly encouraging.
Three companies – American Electric Power (AEP - Free Report) , EOG Resources (EOG - Free Report) , and Hubbell (HUBB - Free Report) – have all recently declared a dividend hike. For those with an appetite for income, let’s take a closer look at how each company currently stacks up.
American Electric Power
American Electric Power Company is a public utility holding company that generates, transmits, and distributes electricity, natural gas, and other commodities. The company recently declared a 6% hike to its quarterly payout.
Shares got a boost post-earnings following its latest release, representing the first positive reaction in several quarters.
Image Source: Zacks Investment Research
AEP shares presently yield a sizable 4.2% annually, nicely above the respective Zacks Utilities sector average. Reflecting its commitment to shareholders, the company’s payout has grown by nearly 6% annually over the last five years.
Please note that the chart below is on an annual basis.
Image Source: Zacks Investment Research
EOG Resources
EOG Resources is engaged primarily in the exploration, development, and production of oil and natural gas, with operations spread across the United States. Earnings expectations have moved higher across the board.
Image Source: Zacks Investment Research
EOG shares currently yield a solid 2.6% annually paired with a sustainable payout ratio sitting at 27% of the company’s earnings. Impressively, EOG boasts a 37% five-year annualized dividend growth rate, recently upping its quarterly payout by 10.3%.
In addition, EOG shares recently bounced nicely off their 200-day daily moving average upon a re-test, a level that previously was met with resistance. With shares now heading back to this level, it’ll be worthwhile for investors to wait and see if they can deliver another bounce.
Image Source: Zacks Investment Research
Hubbell
Hubbell is a top international manufacturer of high-quality and reliable utility and electrical solutions. The company recently boosted its quarterly payout by 9%.
Analysts have been notably bullish on the company’s current year outlook, with the $15.34 Zacks Consensus EPS Estimate up nearly 40% over the last year. Impressively, the value reflects 44% growth in earnings year-over-year.
Image Source: Zacks Investment Research
Like those above, the company has a history of increasingly rewarding its shareholders, carrying a 7% five-year annualized dividend growth rate. Shares currently yield 1.6% annually, in line with its respective Zacks Industrial Products sector average.
Bottom Line
Targeting dividend-paying stocks is an excellent strategy that investors can deploy.
Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment.
And all three companies above – American Electric Power (AEP - Free Report) , EOG Resources (EOG - Free Report) , and Hubbell (HUBB - Free Report) – have recently boosted their payouts.
For those seeking a reliable income stream, all three deserve consideration.