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Income Investing: 3 Companies Consistently Boosting Payouts
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Investors love few things more than consistent, reliable dividend payouts. After all, who doesn’t love getting paid?
Of course, income-focused investors commonly gravitate toward stocks with a history of dividend growth, as the payouts can quickly add up.
Three companies – Caterpillar (CAT - Free Report) , The TJX Companies (TJX - Free Report) , and Lockheed Martin (LMT - Free Report) – have all displayed a shareholder-friendly nature with a track record of increased payouts.
In addition, all three have enjoyed positive earnings estimate revisions, indicating near-term optimism among analysts. For those interested in reaping a passive income stream, let’s take a closer look at each.
Caterpillar
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The stock sports a Zacks Rank #1 (Strong Buy), with earnings estimates increasing across the board.
Image Source: Zacks Investment Research
Caterpillar holds the rank of a Dividend Aristocrat, reflecting an unparalleled commitment to shareholders through 25+ years of increased payouts. Shares currently yield 2.1% annually, nicely above the Zacks Industrial Products sector average.
Image Source: Zacks Investment Research
In addition, the company continues to buy back its shares at a rapid pace, another shareholder-friendly move. Just in 2022, Caterpillar authorized a sizable $15 billion share repurchase program.
Image Source: Zacks Investment Research
The TJX Companies
The TJX Companies is a leading off-price apparel and home fashion retailer in the U.S. and worldwide. The company’s earnings outlook has improved across several timeframes, helping land it into a favorable Zacks Rank #2 (Buy).
TJX’s payout has grown by an impressive 11% over the last five years, with shares currently yielding 1.6% annually. Further, the company’s 37% payout ratio resides on the sustainable side.
Image Source: Zacks Investment Research
The company continues to grow steadily, with estimates calling for 15% earnings growth on 7% higher revenues in its current fiscal year (FY24). And in FY25, earnings and revenue are forecasted to see growth of 10% and 5%, respectively.
Image Source: Zacks Investment Research
TJX’s 62.8% trailing twelve-month return on equity is certainly worth highlighting as well, reflecting a higher efficiency level in generating profits from existing assets relative to its peers.
Image Source: Zacks Investment Research
Lockheed Martin
Lockheed Martin is the largest defense contractor in the world. The company focuses on defense, space, intelligence, homeland security, information technology, and cyber security. The stock is presently a Zacks Rank #2 (Buy).
LMT shares currently yield a solid 2.6% annually. Reflecting its shareholder-friendly nature, the company has grown its payout by almost 9% over the last five years.
Image Source: Zacks Investment Research
The defense titan has delivered better-than-expected results as of late, exceeding both earnings and revenue expectations in back-to-back releases. In fact, the average EPS surprise over the company’s last four quarters comes in at 7.5%.
Shares aren’t stretched regarding valuation, with the current 16.9X forward earnings multiple sitting modestly above the five-year median and well beneath the Zacks Aerospace/Defense industry average. The stock carries a Style Score of “B” for Value.
Image Source: Zacks Investment Research
Bottom Line
Dividends provide a nice boost to any portfolio, helping to limit drawdowns in other positions and providing the opportunity for maximum returns through dividend reinvestment.
And all three companies above – Caterpillar (CAT - Free Report) , The TJX Companies (TJX - Free Report) , and Lockheed Martin (LMT - Free Report) – have fully reflected their shareholder-friendly nature through dividend growth.
In addition, all three sport a favorable Zacks Rank, indicating near-term optimism among analysts.
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Income Investing: 3 Companies Consistently Boosting Payouts
Investors love few things more than consistent, reliable dividend payouts. After all, who doesn’t love getting paid?
Of course, income-focused investors commonly gravitate toward stocks with a history of dividend growth, as the payouts can quickly add up.
Three companies – Caterpillar (CAT - Free Report) , The TJX Companies (TJX - Free Report) , and Lockheed Martin (LMT - Free Report) – have all displayed a shareholder-friendly nature with a track record of increased payouts.
In addition, all three have enjoyed positive earnings estimate revisions, indicating near-term optimism among analysts. For those interested in reaping a passive income stream, let’s take a closer look at each.
Caterpillar
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The stock sports a Zacks Rank #1 (Strong Buy), with earnings estimates increasing across the board.
Image Source: Zacks Investment Research
Caterpillar holds the rank of a Dividend Aristocrat, reflecting an unparalleled commitment to shareholders through 25+ years of increased payouts. Shares currently yield 2.1% annually, nicely above the Zacks Industrial Products sector average.
Image Source: Zacks Investment Research
In addition, the company continues to buy back its shares at a rapid pace, another shareholder-friendly move. Just in 2022, Caterpillar authorized a sizable $15 billion share repurchase program.
Image Source: Zacks Investment Research
The TJX Companies
The TJX Companies is a leading off-price apparel and home fashion retailer in the U.S. and worldwide. The company’s earnings outlook has improved across several timeframes, helping land it into a favorable Zacks Rank #2 (Buy).
TJX’s payout has grown by an impressive 11% over the last five years, with shares currently yielding 1.6% annually. Further, the company’s 37% payout ratio resides on the sustainable side.
Image Source: Zacks Investment Research
The company continues to grow steadily, with estimates calling for 15% earnings growth on 7% higher revenues in its current fiscal year (FY24). And in FY25, earnings and revenue are forecasted to see growth of 10% and 5%, respectively.
Image Source: Zacks Investment Research
TJX’s 62.8% trailing twelve-month return on equity is certainly worth highlighting as well, reflecting a higher efficiency level in generating profits from existing assets relative to its peers.
Image Source: Zacks Investment Research
Lockheed Martin
Lockheed Martin is the largest defense contractor in the world. The company focuses on defense, space, intelligence, homeland security, information technology, and cyber security. The stock is presently a Zacks Rank #2 (Buy).
LMT shares currently yield a solid 2.6% annually. Reflecting its shareholder-friendly nature, the company has grown its payout by almost 9% over the last five years.
Image Source: Zacks Investment Research
The defense titan has delivered better-than-expected results as of late, exceeding both earnings and revenue expectations in back-to-back releases. In fact, the average EPS surprise over the company’s last four quarters comes in at 7.5%.
Shares aren’t stretched regarding valuation, with the current 16.9X forward earnings multiple sitting modestly above the five-year median and well beneath the Zacks Aerospace/Defense industry average. The stock carries a Style Score of “B” for Value.
Image Source: Zacks Investment Research
Bottom Line
Dividends provide a nice boost to any portfolio, helping to limit drawdowns in other positions and providing the opportunity for maximum returns through dividend reinvestment.
And all three companies above – Caterpillar (CAT - Free Report) , The TJX Companies (TJX - Free Report) , and Lockheed Martin (LMT - Free Report) – have fully reflected their shareholder-friendly nature through dividend growth.
In addition, all three sport a favorable Zacks Rank, indicating near-term optimism among analysts.