Bourses grew weaker lately due to inflationary pressure, while markets stayed volatile, the economy declined and supply-chain disruptions continued. Investing in such a situation becomes somewhat challenging.
However, considering certain key factors can significantly enhance our stock-picking ability, stabilize the portfolio and significantly reduce risks and impacts of uncertainty. For instance, under the current scenario where impacts of COVID-19 on the economy persist and markets remain volatile, picking up safe bets from the Zacks Business Services sector that has been benefiting from healthy manufacturing and service activities, essentiality of services, work-from-home strategies, digitization and technological improvements, seems to be a wise decision.
Dividend stocks of companies with solid prospects are clearly safe-haven bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty and promise a cushion against swings in the market.
Companies with a history of increasing dividends often have sustainable business models, a long track record of profitability, rising cash flows, solid liquidity, healthy balance sheets and some value characteristics. Stocks of such companies offer a capital-appreciation opportunity, irrespective of stock market movements, and downside protection with a consistent increase in payouts.
Check These Dividend Stocks From the Service Sector
We believe that dividend-paying business services stocks like The Interpublic Group of Companies, Inc. IPG, ManpowerGroup Inc. MAN and Robert Half International Inc. RHI should be on investors’ watch list now.
We ran the Zacks Stocks Screener to identify these stocks with a dividend yield in excess of 2% and five-year historical dividend growth of more than 0.1%. These stocks carry a Zacks Rank #2 (Buy) or 3 (Hold) and a dividend payout ratio of less than 60%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Interpublic: With a flexible business model in place, this global provider of advertising and marketing services has been focusing on its strategic priorities for a while, promptly investing in talent and offerings, and managing operating costs amid the pandemic. IPG continues enhancing its digital capabilities like search, social, user experience, content creation, analytics and mobile across its portfolio to maintain growth in the dynamic sector.
Interpublic has a dividend yield of 4.17% and five-year annualized dividend growth of 9.62%. IPG’s dividend payout ratio is 45% of earnings. IPG carries a Zacks Rank of 2 at present. Check Interpublic’s dividend history here.
Interpublic Group of Companies, Inc. The Dividend Yield (TTM)
Interpublic Group of Companies, Inc. The dividend-yield-ttm | Interpublic Group of Companies, Inc. The Quote
ManpowerGroup: This workforce solutions and services provider is trying to strengthen its top line through strong pricing and cost control. To increase productivity and efficiency, MAN made significant investments in technology. It is implementing front-office systems, cloud-based and mobile applications, and enhancing its global technology infrastructure across several markets. MAN is also investing in digitalization of its workforce solutions. The stock currently carries a Zacks Rank #3.
The stock has a dividend yield of 3.73% and five-year historical dividend growth of 7.68%. Further, MAN’s payout ratio is 33% of earnings at present. Check ManpowerGroup’s dividend history here.
ManpowerGroup Inc. Dividend Yield (TTM)
ManpowerGroup Inc. dividend-yield-ttm | ManpowerGroup Inc. Quote
Robert Half: This staffing and risk-consulting services provider is steadily utilizing a major share of its capital expenditures to invest in software initiatives and technology infrastructure. Major software initiatives include upgrades toenterprise resource planning applications and implementing a global, cloud-based customer relationship management application.
Robert Staff continues investing in digital technology initiatives designed to enhance the service offerings to both clients and candidates. Technology investments, a broad and deep client as well as a candidate database, and network scope and global scale bode well for the long haul. RHI currently carries a Zacks Rank of 3.
Robert Staff has a dividend yield of 2.19% and five-year annualized dividend growth of 11.81%. RHI’s dividend payout ratio is 28% of earnings. Check Robert Half’s dividend history here.
Robert Half International Inc. Dividend Yield (TTM)
Robert Half International Inc. dividend-yield-ttm | Robert Half International Inc. Quote
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