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Top 5 Dividend-Paying Stocks Set to Beat on Earnings Next Week
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We are in the middle of the fourth-quarter 2023 earnings season. Results are, so far, mostly in line with expectations. Next week will be the busiest this reporting cycle, with as many as 808 companies slated to report their quarterly financial numbers.
As of Feb 7, 285 companies on the S&P 500 Index have reported their financial numbers. Total earnings for these 285 index members are up 4.4% from the same period last year on 3.5% higher revenues, with 81.1% beating EPS estimates and 64.6% beating revenue estimates.
At present, total earnings of the S&P 500 Index in fourth-quarter 2023 are expected to be up 4.9% on 3.1% higher revenues. This would follow 3.8% earnings growth on 2% higher revenues in the third quarter and three back-to-back quarters of declining earnings before that.
Meanwhile, five large-cap (market capital > $10 billion) stocks with a favorable Zacks Rank are set to beat on earnings this month. The combination of a favorable Zacks Rank and a possible earnings beat should drive their stock prices in the near term. Moreover, these companies regularly pay dividends, which act as an additional income stream.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of our five picks in the last quarter.
Image Source: Zacks Investment Research
Waste Management Inc. (WM - Free Report) continues to execute its core operating initiatives of focused differentiation and continuous improvement and instill price and cost discipline to achieve better margins. Strength across traditional solid waste business boosts the company's cash and earnings. Successful cost-reduction initiatives have helped WM achieve better margins. WM has a current dividend yield of 1.48%.
Waste Management has an Earnings ESP of +0.70%. It has an expected earnings growth rate of 12.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days. WM is set to release earnings results on Feb 12, after the closing bell.
Restaurant Brands International Inc. (QSR - Free Report) is benefiting from strong global comparable sales, unit growth and a healthy balance of traffic and check. Also, QSR’s focus on menu innovation and digitalization efforts bodes well. QSR remains optimistic about the growth of digital sales in international markets, backed by various service modes. QSR has a current dividend yield of 2.88%.
Restaurant Brands International has an Earnings ESP of +0.42%. It has an expected earnings growth rate of 5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last seven days.
Restaurant Brands International recorded earnings surprises in the last four reported quarters, with an average beat of 9.5%. The company is set to release earnings results on Feb 13, before the opening bell.
Molson Coors Beverage Co. (TAP - Free Report) has been benefiting from brand strength, and strong performances across its portfolio and both business units. TAP raised its 2023 view mainly due to the recovery in the U.S. beer category, stronger-than-expected brand volume growth and better-than-expected pricing across global markets. Also, TAP’s revitalization plan and the premiumization of the global portfolio bode well. TAP has a current dividend yield of 2.68%.
Molson Coors has an Earnings ESP of +2.72%. It has an expected earnings growth rate of 2.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days.
Molson Coors recorded earnings surprises in the last four reported quarters, with an average beat of 41.3%. The company is set to release earnings results on Feb 13, before the opening bell.
Leidos Holdings Inc. (LDOS - Free Report) has been benefitting from increased contract wins from the Pentagon and other U.S. allies. These contract wins bolster LDOS’ bookings substantially and continue to boost its revenue growth prospects.
The macroeconomic environment in the United States has been boosting growth prospects of LDOS, given the widespread geopolitical uncertainty along with the current U.S. administration’s inclination toward increased defense spending. LDOS has a current dividend yield of 1.36%.
Leidos Holdings has an Earnings ESP of +1.88%. It has an expected earnings growth rate of 6.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 30 days.
Leidos Holdings recorded earnings surprises in three out of the last four reported quarters, with an average beat of 11.5%. The company is set to release earnings results on Feb 13, before the opening bell.
Ventas Inc.’s (VTR - Free Report) diverse portfolio of healthcare real estate assets in the key markets of the United States, Canada and the U.K. is well-poised to capitalize on favorable industry fundamentals. VTR’s senior housing operating portfolio will likely benefit from the aging population and the rising healthcare expenditures by senior citizens.
The outpatient medical and research segment is expected to gain from favorable outpatient-visit trends. VTR’s accretive investments to expand its research portfolio look promising. VTR has a current dividend yield of 3.99%.
Ventas has an Earnings ESP of +0.82%. It has an expected earnings growth rate of 7.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days.
Ventas recorded earnings surprises in the last four reported quarters, with an average beat of 2.5%. The company is set to release earnings results on Feb 14, after the closing bell.
Image: Bigstock
Top 5 Dividend-Paying Stocks Set to Beat on Earnings Next Week
We are in the middle of the fourth-quarter 2023 earnings season. Results are, so far, mostly in line with expectations. Next week will be the busiest this reporting cycle, with as many as 808 companies slated to report their quarterly financial numbers.
As of Feb 7, 285 companies on the S&P 500 Index have reported their financial numbers. Total earnings for these 285 index members are up 4.4% from the same period last year on 3.5% higher revenues, with 81.1% beating EPS estimates and 64.6% beating revenue estimates.
At present, total earnings of the S&P 500 Index in fourth-quarter 2023 are expected to be up 4.9% on 3.1% higher revenues. This would follow 3.8% earnings growth on 2% higher revenues in the third quarter and three back-to-back quarters of declining earnings before that.
Meanwhile, five large-cap (market capital > $10 billion) stocks with a favorable Zacks Rank are set to beat on earnings this month. The combination of a favorable Zacks Rank and a possible earnings beat should drive their stock prices in the near term. Moreover, these companies regularly pay dividends, which act as an additional income stream.
Our Top Picks
We have narrowed our search to five dividend-paying large-cap stocks that are poised to beat on earnings next week. Each of these stocks carries a Zacks Rank #2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of our five picks in the last quarter.
Image Source: Zacks Investment Research
Waste Management Inc. (WM - Free Report) continues to execute its core operating initiatives of focused differentiation and continuous improvement and instill price and cost discipline to achieve better margins. Strength across traditional solid waste business boosts the company's cash and earnings. Successful cost-reduction initiatives have helped WM achieve better margins. WM has a current dividend yield of 1.48%.
Waste Management has an Earnings ESP of +0.70%. It has an expected earnings growth rate of 12.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days. WM is set to release earnings results on Feb 12, after the closing bell.
Restaurant Brands International Inc. (QSR - Free Report) is benefiting from strong global comparable sales, unit growth and a healthy balance of traffic and check. Also, QSR’s focus on menu innovation and digitalization efforts bodes well. QSR remains optimistic about the growth of digital sales in international markets, backed by various service modes. QSR has a current dividend yield of 2.88%.
Restaurant Brands International has an Earnings ESP of +0.42%. It has an expected earnings growth rate of 5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last seven days.
Restaurant Brands International recorded earnings surprises in the last four reported quarters, with an average beat of 9.5%. The company is set to release earnings results on Feb 13, before the opening bell.
Molson Coors Beverage Co. (TAP - Free Report) has been benefiting from brand strength, and strong performances across its portfolio and both business units. TAP raised its 2023 view mainly due to the recovery in the U.S. beer category, stronger-than-expected brand volume growth and better-than-expected pricing across global markets. Also, TAP’s revitalization plan and the premiumization of the global portfolio bode well. TAP has a current dividend yield of 2.68%.
Molson Coors has an Earnings ESP of +2.72%. It has an expected earnings growth rate of 2.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days.
Molson Coors recorded earnings surprises in the last four reported quarters, with an average beat of 41.3%. The company is set to release earnings results on Feb 13, before the opening bell.
Leidos Holdings Inc. (LDOS - Free Report) has been benefitting from increased contract wins from the Pentagon and other U.S. allies. These contract wins bolster LDOS’ bookings substantially and continue to boost its revenue growth prospects.
The macroeconomic environment in the United States has been boosting growth prospects of LDOS, given the widespread geopolitical uncertainty along with the current U.S. administration’s inclination toward increased defense spending. LDOS has a current dividend yield of 1.36%.
Leidos Holdings has an Earnings ESP of +1.88%. It has an expected earnings growth rate of 6.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 30 days.
Leidos Holdings recorded earnings surprises in three out of the last four reported quarters, with an average beat of 11.5%. The company is set to release earnings results on Feb 13, before the opening bell.
Ventas Inc.’s (VTR - Free Report) diverse portfolio of healthcare real estate assets in the key markets of the United States, Canada and the U.K. is well-poised to capitalize on favorable industry fundamentals. VTR’s senior housing operating portfolio will likely benefit from the aging population and the rising healthcare expenditures by senior citizens.
The outpatient medical and research segment is expected to gain from favorable outpatient-visit trends. VTR’s accretive investments to expand its research portfolio look promising. VTR has a current dividend yield of 3.99%.
Ventas has an Earnings ESP of +0.82%. It has an expected earnings growth rate of 7.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days.
Ventas recorded earnings surprises in the last four reported quarters, with an average beat of 2.5%. The company is set to release earnings results on Feb 14, after the closing bell.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.