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With the return of volatility in the New Year, investors are eyeing both income and growth. This can easily be done through dividend stocks. Though these stocks do not offer dramatic price appreciation, they are a major source of consistent income for investors to create wealth when returns from the equity market are at risk.
In fact, 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 — Arcos Dorados Holdings Inc., Cboe Global Markets, Microsoft Corp., Parker-Hannifin Corp. and PACCAR Inc. — that could outperform the market in 2024.
Dividend Growth: A Winning Strategy
Stocks that have a strong history of dividend growth belong to mature companies 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 a 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 seven stocks that fit the bill:
Argentina-based Arcos Dorados operates as a franchisee of McDonald's, with its operations divided among Brazil, North Latin America, South Latin America and the Caribbean divisions. It also runs quick-service restaurants in Latin America and the Caribbean. Arcos Dorados delivered an average earnings surprise of 28.26% in the past last quarters and has an estimated earnings growth rate of 15.4% for this year.
Illinois-based Cboe Global is one of the largest stock exchange operators by volume in the United States and a leading global market for ETP trading. The company saw a positive earnings estimate revision of 6 cents over the past 30 days for this year. It has an estimated earnings growth rate of 5.9%.
Cboe Global has a Zacks Rank #2 and a Growth Score of B.
Washington-based Microsoft is one of the largest broad-based technology providers in the world. The company dominates the PC software market, with more than 73% of the market share for desktop operating systems. Microsoft has an estimated earnings growth rate of 13.46% for the fiscal year ending June 2024 and delivered an average earnings surprise of 7.83% in the past four quarters.
Microsoft has a Zacks Rank #2 and a Growth Score of A.
Ohio-based Parker-Hannifin is a global diversified manufacturer of motion & control technologies and systems. It provides precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets. The stock saw a positive earnings estimate revision of a penny over the past 30 days for the fiscal year ending June 2024 and has an estimated earnings growth rate of 7.6%.
ParkerHannifin has a Zacks Rank #2 and a Growth Score of B.
Washington-based PACCAR is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. The company delivered an average earnings surprise of 15.99% for the past four quarters.
PACCAR has a Zacks Rank #2 and a 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.
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
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 >>.
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.
Zacks.com 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. www.zacks.com/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 https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Arcos Dorados, Cboe Global Markets, Microsoft, Parker-Hannifin and PACCAR
For Immediate Release
Chicago, IL – January 5, 2024 – Stocks in this week’s article are Arcos Dorados Holdings Inc. (ARCO - Free Report) , Cboe Global Markets (CBOE - Free Report) , Microsoft Corp. (MSFT - Free Report) , Parker-Hannifin Corp. (PH - Free Report) and PACCAR Inc. (PCAR - Free Report) .
5 Unbeatable Dividend Growth Stocks for 2024
With the return of volatility in the New Year, investors are eyeing both income and growth. This can easily be done through dividend stocks. Though these stocks do not offer dramatic price appreciation, they are a major source of consistent income for investors to create wealth when returns from the equity market are at risk.
In fact, 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 — Arcos Dorados Holdings Inc., Cboe Global Markets, Microsoft Corp., Parker-Hannifin Corp. and PACCAR Inc. — that could outperform the market in 2024.
Dividend Growth: A Winning Strategy
Stocks that have a strong history of dividend growth belong to mature companies 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 a 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 seven stocks that fit the bill:
Argentina-based Arcos Dorados operates as a franchisee of McDonald's, with its operations divided among Brazil, North Latin America, South Latin America and the Caribbean divisions. It also runs quick-service restaurants in Latin America and the Caribbean. Arcos Dorados delivered an average earnings surprise of 28.26% in the past last quarters and has an estimated earnings growth rate of 15.4% for this year.
Arcos Dorados has a Zacks Rank #1 and a Growth Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
Illinois-based Cboe Global is one of the largest stock exchange operators by volume in the United States and a leading global market for ETP trading. The company saw a positive earnings estimate revision of 6 cents over the past 30 days for this year. It has an estimated earnings growth rate of 5.9%.
Cboe Global has a Zacks Rank #2 and a Growth Score of B.
Washington-based Microsoft is one of the largest broad-based technology providers in the world. The company dominates the PC software market, with more than 73% of the market share for desktop operating systems. Microsoft has an estimated earnings growth rate of 13.46% for the fiscal year ending June 2024 and delivered an average earnings surprise of 7.83% in the past four quarters.
Microsoft has a Zacks Rank #2 and a Growth Score of A.
Ohio-based Parker-Hannifin is a global diversified manufacturer of motion & control technologies and systems. It provides precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets. The stock saw a positive earnings estimate revision of a penny over the past 30 days for the fiscal year ending June 2024 and has an estimated earnings growth rate of 7.6%.
ParkerHannifin has a Zacks Rank #2 and a Growth Score of B.
Washington-based PACCAR is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. The company delivered an average earnings surprise of 15.99% for the past four quarters.
PACCAR has a Zacks Rank #2 and a 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.
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 Zacks.com at: https://www.zacks.com/stock/news/2205520/5-unbeatable-dividend-growth-stocks-for-2024
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
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 >>.
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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
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com 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. www.zacks.com/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 https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.