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US Offers Steadiest Dividend Growth Through a Decade: 4 Picks
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Consistent dividends interest all. American businessman John D. Rockefeller was no exception as can be gathered from his remark, “Do you know the only thing that gives me pleasure? It's to see my dividends coming in.” However, finding steady dividend paying stocks, especially when the global economy is fettered by intensifying tariff concerns, is no mean feat.
Meanwhile, global dividend payouts recently touched a fresh record following impressive corporate earnings, per Janus Henderson. The report added that among all nations, the United States rewards the steadiest growth in dividends, convincing investors to include U.S. stocks in portfolios.
Worldwide Dividends Touch Fresh High
By the end of second-quarter 2018, the Janus Henderson Global Dividend Index closed at 182. Thus, dividend payments surged more than 80% worldwide since 2009.
It is to be noted that the Janus Henderson Global Dividend Index basically shows how well global firms are returning cash to stockholders. In other words, the index reflects analysis of the quarterly dividend story of 1,200 biggest companies with respect to market capitalization.
Per the Index, the companies collectively paid dividend of $497.4 billion worldwide through the quarter ending June 2018, representing a hike of 13% from the year-ago quarter. Importantly, the total dividend amount, which is almost near the $500-billion mark, has set a new record.
US Stocks Offer Most Stable Dividend Growth
Apart from the United States, Japan, Belgium, Germany, Netherlands, Switzerland, France, Ireland and Denmark also doled out record dividends.
Data from Janus Henderson revealed that through the April-to-June quarter of 2018, U.S. firms’ collective dividend payments rose 4.5% year over year to $117.1 billion.
The report added that among all nations, the United States has been rewarding investors with the steadiest growth in dividend payments. Notably, over the past decade, U.S. equities bumped up dividends in all but four quarters.
Factors Driving Strong Growth
According to Janus Henderson, improving profitability of corporate firms backed soaring payouts across the globe.
The corporate earnings picture in the United States is extremely bright. We expect second-quarter 2018 earnings for the S&P 500 index to grow 24.9% year over year. Importantly, earnings growth for the June quarter steered past 24.6% growth recorded during first-quarter 2018 to mark the highest quarterly growth since 2010.
Per the U.S. Department of Commerce, gross domestic product rose 4.1% through the April-to-June quarter of 2018, marking the highest pace in almost four years. Notably, the economic strength of the domestic market was broad-based and hence was definitely not dependent on any particular sector’s performance. In other words, almost all sectors, starting from Energy, Construction, Retail, Technology and others, contributed to the S&P 500 index’s earnings outperformance.
Will Payouts Keep Growing?
The rising tariff battle between the America and leading economies is a major hindrance for firms across the world. However, it is difficult to predict the magnitude of losses, said Ben Lofthouse of global asset management group Janus Henderson.
Despite the uncertainties, Ben Lofthouse, heading the Global Equity Income at the asset management firm, is quite optimistic about corporate profitability and believes that there is room for aggregate earnings growth till 2019. Higher profits will likely get reflected in handsome payouts.
Ben Lofthouse added that the main driver beyond the U.S. pay-out growths in the coming quarters is the corporate tax cut. The lower burden of tax will likely encourage domestic players to return part of their earnings to investors through additional dividend payments. Notably, Ben Lofthouse has projected 7.4%underlying dividend growth of global equities to make $1.36-trillion payouts through 2018.
Bet on 4 Dividend Aristocrats
A company is considered a dividend aristocrat when it consistently hikes dividends for at least 25 years. We have employed our proprietary Stock Screener to zero in on four U.S.-based dividend aristocrats with a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Founded in 1902, and headquartered in Minneapolis, MN, Target Corporation (TGT - Free Report) operates as a general merchandise retailer in the United States.
The #2 Ranked company offers a dividend yield of almost 3%, higher than 1.8% of the elite S&P 500 index.
Illinois-based Archer Daniels Midland Company (ADM - Free Report) is one of the leading food processing companies in the world.
Incorporated in 1928, in Illinois, W.W. Grainger, Inc. (GWW - Free Report) is a leading North American distributor of material handling equipment.
Currently, the company sports a Zacks Rank #1.
Pennsylvania-based Air Products and Chemicals Inc. (APD - Free Report) makes industrial gases as well as a variety of polymer and performance chemicals.
The company, with a Zacks Rank of 2, rewards investors with a dividend yield of almost 2.7%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
US Offers Steadiest Dividend Growth Through a Decade: 4 Picks
Consistent dividends interest all. American businessman John D. Rockefeller was no exception as can be gathered from his remark, “Do you know the only thing that gives me pleasure? It's to see my dividends coming in.” However, finding steady dividend paying stocks, especially when the global economy is fettered by intensifying tariff concerns, is no mean feat.
Meanwhile, global dividend payouts recently touched a fresh record following impressive corporate earnings, per Janus Henderson. The report added that among all nations, the United States rewards the steadiest growth in dividends, convincing investors to include U.S. stocks in portfolios.
Worldwide Dividends Touch Fresh High
By the end of second-quarter 2018, the Janus Henderson Global Dividend Index closed at 182. Thus, dividend payments surged more than 80% worldwide since 2009.
It is to be noted that the Janus Henderson Global Dividend Index basically shows how well global firms are returning cash to stockholders. In other words, the index reflects analysis of the quarterly dividend story of 1,200 biggest companies with respect to market capitalization.
Per the Index, the companies collectively paid dividend of $497.4 billion worldwide through the quarter ending June 2018, representing a hike of 13% from the year-ago quarter. Importantly, the total dividend amount, which is almost near the $500-billion mark, has set a new record.
US Stocks Offer Most Stable Dividend Growth
Apart from the United States, Japan, Belgium, Germany, Netherlands, Switzerland, France, Ireland and Denmark also doled out record dividends.
Data from Janus Henderson revealed that through the April-to-June quarter of 2018, U.S. firms’ collective dividend payments rose 4.5% year over year to $117.1 billion.
The report added that among all nations, the United States has been rewarding investors with the steadiest growth in dividend payments. Notably, over the past decade, U.S. equities bumped up dividends in all but four quarters.
Factors Driving Strong Growth
According to Janus Henderson, improving profitability of corporate firms backed soaring payouts across the globe.
The corporate earnings picture in the United States is extremely bright. We expect second-quarter 2018 earnings for the S&P 500 index to grow 24.9% year over year. Importantly, earnings growth for the June quarter steered past 24.6% growth recorded during first-quarter 2018 to mark the highest quarterly growth since 2010.
Per the U.S. Department of Commerce, gross domestic product rose 4.1% through the April-to-June quarter of 2018, marking the highest pace in almost four years. Notably, the economic strength of the domestic market was broad-based and hence was definitely not dependent on any particular sector’s performance. In other words, almost all sectors, starting from Energy, Construction, Retail, Technology and others, contributed to the S&P 500 index’s earnings outperformance.
Will Payouts Keep Growing?
The rising tariff battle between the America and leading economies is a major hindrance for firms across the world. However, it is difficult to predict the magnitude of losses, said Ben Lofthouse of global asset management group Janus Henderson.
Despite the uncertainties, Ben Lofthouse, heading the Global Equity Income at the asset management firm, is quite optimistic about corporate profitability and believes that there is room for aggregate earnings growth till 2019. Higher profits will likely get reflected in handsome payouts.
Ben Lofthouse added that the main driver beyond the U.S. pay-out growths in the coming quarters is the corporate tax cut. The lower burden of tax will likely encourage domestic players to return part of their earnings to investors through additional dividend payments. Notably, Ben Lofthouse has projected 7.4%underlying dividend growth of global equities to make $1.36-trillion payouts through 2018.
Bet on 4 Dividend Aristocrats
A company is considered a dividend aristocrat when it consistently hikes dividends for at least 25 years. We have employed our proprietary Stock Screener to zero in on four U.S.-based dividend aristocrats with a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Founded in 1902, and headquartered in Minneapolis, MN, Target Corporation (TGT - Free Report) operates as a general merchandise retailer in the United States.
The #2 Ranked company offers a dividend yield of almost 3%, higher than 1.8% of the elite S&P 500 index.
Illinois-based Archer Daniels Midland Company (ADM - Free Report) is one of the leading food processing companies in the world.
The #1 Ranked company currently offers a dividend yield of 2.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Incorporated in 1928, in Illinois, W.W. Grainger, Inc. (GWW - Free Report) is a leading North American distributor of material handling equipment.
Currently, the company sports a Zacks Rank #1.
Pennsylvania-based Air Products and Chemicals Inc. (APD - Free Report) makes industrial gases as well as a variety of polymer and performance chemicals.
The company, with a Zacks Rank of 2, rewards investors with a dividend yield of almost 2.7%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>