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4 Dividend Hikers to Bet On Amid Prolonged Uncertainty

Shuvra Shankar Dey
·4 min read

According to experts, the daily new number of coronavirus infections remains at a fatal level and there is significant possibility of elevation as we enter colder months of the fall.

With the economy reopening gradually, and people trying to step out and resume their regular activities, incidents of desired or undesired relaxation of infection-prevention efforts are increasing, causing a spike in infections. With no effective therapy or vaccine available yet, there’s still much uncertainty about the impact of the crisis on the economy and markets.

Risks Surrounding the Bourses

The mismatch between surging stock prices and the dismal economic data has been evident for quite some time now. As the United States grappled with shrinking economic fundamentals, the stock market made a dramatic comeback.

While the market rally can be explained with reasons such as economic stimulus, lowered interest rates and increase in the number of retail investors amid the stay-at-home crisis, the possibility that we are on an asset bubble in the middle of a recession cannot be ruled out. A market crash is inevitable if it pops.

There are other risks as well, such as election uncertainty, a slowdown in economic recovery due to lack of another relief package or the next round of virus wave hitting before a vaccine is rolled out.

Stay Invested With These Dividend Spinners

At this juncture, it is important to identify and invest in companies that have solid prospects and promise cushion against swings in the market. Notably, companies which pay regular and handsome dividends often have sustainable business models, long track record of profitability, rising cash flows, solid liquidity, healthy balance sheets and some value characteristics.

Although it is rare to see firms raising dividends this year, a handful have come up as exceptions and continued rewarding shareholders with dividend hikes.

Newmont Corporation NEM, engaged in the production and exploration of gold, copper, silver, zinc, and lead, has increased its quarterly dividend rate by 79%, from 14 cents per share to 25 cents per share.

The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the company’s 2020 earnings suggests an 88.6% year-over-year surge. The consensus estimate for the year has moved up 10.2% to $2.49 in the past month.

Newmont Corporation Price, Consensus and EPS Surprise

Newmont Corporation Price, Consensus and EPS Surprise
Newmont Corporation Price, Consensus and EPS Surprise

Newmont Corporation price-consensus-eps-surprise-chart | Newmont Corporation Quote

Pool Corporation POOL, distributor of swimming pool supplies, equipment, and related leisure products, carries a Zacks Rank of 2 (Buy), at present. The company has hiked its quarterly dividend rate by 5%, from 55 cents per share to 58 cents per share.

The Zacks Consensus Estimate for the company’s current-year earnings indicates 13.3% year-over-year improvement. The consensus estimate for the year has remained unchanged at $7.25 in the past month.

Pool Corporation Price, Consensus and EPS Surprise

Pool Corporation Price, Consensus and EPS Surprise
Pool Corporation Price, Consensus and EPS Surprise

Pool Corporation price-consensus-eps-surprise-chart | Pool Corporation Quote

Integrated healthcare services and products company Cardinal Health CAH has made a 1% increase in its quarterly dividend to 48.6 cents per share. The company currently carries a Zacks Rank #2. The Zacks Consensus Estimate for fiscal 2020 earnings has been revised 0.7% upward to $5.46 in the past month.

Cardinal Health, Inc. Price, Consensus and EPS Surprise

Cardinal Health, Inc. Price, Consensus and EPS Surprise
Cardinal Health, Inc. Price, Consensus and EPS Surprise

Cardinal Health, Inc. price-consensus-eps-surprise-chart | Cardinal Health, Inc. Quote

Water and wastewater services provider American Water Works Company AWK has made a 10% hike in its quarterly dividend payout to 55 cents per share. Currently, the company carries a Zacks Rank #2. Its ongoing-year earnings are expected to climb 6.4% year over year. The Zacks Consensus Estimate for this year’s earnings has moved 0.3% north to $3.84 in a month’s time.

American Water Works Company, Inc. Price, Consensus and EPS Surprise

American Water Works Company, Inc. Price, Consensus and EPS Surprise
American Water Works Company, Inc. Price, Consensus and EPS Surprise

American Water Works Company, Inc. price-consensus-eps-surprise-chart | American Water Works Company, Inc. Quote

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.

The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.

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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
 
Pool Corporation (POOL) : Free Stock Analysis Report
 
Newmont Corporation (NEM) : Free Stock Analysis Report
 
American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
 
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