For Immediate Release
Chicago, IL – January 11, 2018 - Stocks in this week’s article Evercore Inc. (EVR - Free Report) , Lear Corp. (LEA - Free Report) , Jones Lang LaSalle Inc. (JLL - Free Report) , Microsoft Corp. (MSFT - Free Report) and Broadcom Limited (AVGO - Free Report) .
5 Dividend Growth Stocks for Higher Returns in 2018
A history of dividend growth year over year leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields. Now, with the biggest tax overhaul in decades, the appeal for these stocks have increased on optimism that the new tax structure would prompt dividend hikes. This has made the investment case for dividend growth stocks even stronger.
Inside The Dividend Growth Strategy
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 dividend increase in the future is likely. This makes the portfolio healthy and safe.
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 appear as winning strategies when some other parameters are also included.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/288363/5-dividend-growth-etfs-for-higher-returns-in-2018
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