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5 Solid Dividend Stocks With Rising Payouts for Safe Income
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Key Takeaways
INTU, FOX, QFIN, UGI and INGR show consistent dividend growth and strong long-term earnings potential.
These stocks witnessed positive estimate revisions and boast solid expected earnings growth this fiscal year.
Each company ranks in the top Zacks tiers and carries a Growth Score of A or B for added upside potential.
Wall Street staged a nice comeback from the lows hit in early April and is currently hovering near record highs. Optimism around U.S.-China trade negotiations, easing inflation and resilient corporate earnings fueled the rally. However, uncertainty surrounding Trump’s policies continues to linger.
In such a scenario, investors are flocking to dividend investing for safe and consistent returns. Dividends are a major source of consistent income for investors to create wealth when returns from the equity market are at risk, even though they do not offer dramatic price appreciation. These stocks tend to outperform in a choppy market and can reduce the volatility of a portfolio.
In fact, picking stocks with a history of dividend growth leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend-paying stocks or those with high yields. We have selected five dividend growth stocks — Intuit Inc. (INTU - Free Report) , Fox Corporation (FOX - Free Report) , Qifu Technology Inc. (QFIN - Free Report) , UGI Corporation (UGI - Free Report) and Ingredion Incorporated (INGR - Free Report) — that could be compelling picks for investors amid the current trends.
Why Dividend Growth?
Stocks that have a strong history of dividend growth belong to mature companies, which are 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.
As a result, picking dividend growth stocks appears as a winning strategy when some other parameters are also included.
5-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history.
5-Year Historical Sales Growth greater than zero: This represents stocks with a strong record of growing revenues.
5-Year Historical EPS Growth greater than zero: This represents stocks with a solid earnings growth history.
Next 3-5 Year EPS Growth Rate greater than zero: This represents the rate at which a company’s earnings are expected to grow. Improving earnings should help companies sustain dividend payments.
Price/Cash Flow less than M-Industry: A ratio less than M-industry indicates that the stock is undervalued in that industry and that an investor needs to pay less for better cash flow generated by the company.
52-Week Price Change greater than S&P 500 (Market Weight): This ensures that the stock appreciated more than the S&P 500 over the past year.
Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environment.
Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Just these few criteria have narrowed down the universe from over 7,700 stocks to nine.
Here are five of the nine stocks that fit the bill:
California-based Intuit is a business and financial software company that develops and sells financial, accounting and tax preparation software and related services for small businesses, consumers and accounting professionals globally. The stock saw a solid earnings estimate revision of 80 cents for the fiscal year (ending July 2025) over the past 30 days and has an expected earnings growth rate of 18.4%.
New York-based Fox Corporation produces and distributes news, sports and entertainment content. The company's brands include FOX News, FOX Sports, the FOX Network, the FOX Television Stations and sports cable networks — FS1, FS2, Fox Deportes and Big Ten Network. The company saw a positive earnings estimate revision of a penny for the fiscal year (ending June 2025) over the past 30 days and has an expected earnings growth rate of 32.4%.
Fox has a Zacks Rank #2 and a Growth Score of B.
China-based Qifu Technology is a Credit-Tech platform principally in China that provides a comprehensive suite of technology services to assist financial institutions and consumers, and SMEs in the loan lifecycle, ranging from borrower acquisition, preliminary credit assessment, fund matching and post-facilitation services. The stock saw a positive earnings estimate revision of 16 cents for this year over the past 30 days and has an expected earnings growth rate of 25.3%.
Qifu has a Zacks Rank #2 and a Growth Score of A.
Pennsylvania-based UGI Corporation is a holding company that distributes, stores, transports and markets energy products and related services through its subsidiaries. It is a domestic and international retail distributor of propane and butane liquefied petroleum gases; a provider of natural gas and electric service via regulated local distribution utilities; a generator of electricity and a regional marketer of energy commodities. The stock saw a positive earnings estimate revision of five cents for the fiscal year (ending September 2025) over the past 30 days, with an estimated growth rate of 2.29%.
UGI Corporation has a Zacks Rank #2 and a Growth Score of B.
Chicago-based Ingredion is an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. It has an estimated earnings growth rate of 5.2% for this year and delivered an average earnings surprise of 13.63% for the past four quarters.
Ingredion Industries currently has a Zacks Rank #2 and a Growth Score of A.
You can get the remaining 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.
Image: Bigstock
5 Solid Dividend Stocks With Rising Payouts for Safe Income
Key Takeaways
Wall Street staged a nice comeback from the lows hit in early April and is currently hovering near record highs. Optimism around U.S.-China trade negotiations, easing inflation and resilient corporate earnings fueled the rally. However, uncertainty surrounding Trump’s policies continues to linger.
In such a scenario, investors are flocking to dividend investing for safe and consistent returns. Dividends are a major source of consistent income for investors to create wealth when returns from the equity market are at risk, even though they do not offer dramatic price appreciation. These stocks tend to outperform in a choppy market and can reduce the volatility of a portfolio.
In fact, picking stocks with a history of dividend growth leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend-paying stocks or those with high yields. We have selected five dividend growth stocks — Intuit Inc. (INTU - Free Report) , Fox Corporation (FOX - Free Report) , Qifu Technology Inc. (QFIN - Free Report) , UGI Corporation (UGI - Free Report) and Ingredion Incorporated (INGR - Free Report) — that could be compelling picks for investors amid the current trends.
Why Dividend Growth?
Stocks that have a strong history of dividend growth belong to mature companies, which are 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.
As a result, picking dividend growth stocks appears as a winning strategy when some other parameters are also included.
5-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history.
5-Year Historical Sales Growth greater than zero: This represents stocks with a strong record of growing revenues.
5-Year Historical EPS Growth greater than zero: This represents stocks with a solid earnings growth history.
Next 3-5 Year EPS Growth Rate greater than zero: This represents the rate at which a company’s earnings are expected to grow. Improving earnings should help companies sustain dividend payments.
Price/Cash Flow less than M-Industry: A ratio less than M-industry indicates that the stock is undervalued in that industry and that an investor needs to pay less for better cash flow generated by the company.
52-Week Price Change greater than S&P 500 (Market Weight): This ensures that the stock appreciated more than the S&P 500 over the past year.
Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environment.
Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Just these few criteria have narrowed down the universe from over 7,700 stocks to nine.
Here are five of the nine stocks that fit the bill:
California-based Intuit is a business and financial software company that develops and sells financial, accounting and tax preparation software and related services for small businesses, consumers and accounting professionals globally. The stock saw a solid earnings estimate revision of 80 cents for the fiscal year (ending July 2025) over the past 30 days and has an expected earnings growth rate of 18.4%.
The stock has a Zacks Rank #1 and Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
New York-based Fox Corporation produces and distributes news, sports and entertainment content. The company's brands include FOX News, FOX Sports, the FOX Network, the FOX Television Stations and sports cable networks — FS1, FS2, Fox Deportes and Big Ten Network. The company saw a positive earnings estimate revision of a penny for the fiscal year (ending June 2025) over the past 30 days and has an expected earnings growth rate of 32.4%.
Fox has a Zacks Rank #2 and a Growth Score of B.
China-based Qifu Technology is a Credit-Tech platform principally in China that provides a comprehensive suite of technology services to assist financial institutions and consumers, and SMEs in the loan lifecycle, ranging from borrower acquisition, preliminary credit assessment, fund matching and post-facilitation services. The stock saw a positive earnings estimate revision of 16 cents for this year over the past 30 days and has an expected earnings growth rate of 25.3%.
Qifu has a Zacks Rank #2 and a Growth Score of A.
Pennsylvania-based UGI Corporation is a holding company that distributes, stores, transports and markets energy products and related services through its subsidiaries. It is a domestic and international retail distributor of propane and butane liquefied petroleum gases; a provider of natural gas and electric service via regulated local distribution utilities; a generator of electricity and a regional marketer of energy commodities. The stock saw a positive earnings estimate revision of five cents for the fiscal year (ending September 2025) over the past 30 days, with an estimated growth rate of 2.29%.
UGI Corporation has a Zacks Rank #2 and a Growth Score of B.
Chicago-based Ingredion is an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. It has an estimated earnings growth rate of 5.2% for this year and delivered an average earnings surprise of 13.63% for the past four quarters.
Ingredion Industries currently has a Zacks Rank #2 and a Growth Score of A.
You can get the remaining 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.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance..