Zacks.com featured highlights include Archer-Daniels-Midland, Cardinal Health, Insperity, Deere & Co. and H&R Block
For Immediate Release
Chicago, IL – December 28, 2022 – Stocks in this week’s article are Archer-Daniels-Midland Company ADM, Cardinal Health Inc. CAH, Insperity Inc. NSP, Deere & Co. DE and H&R Block Inc. HRB.
5 Top-Ranked Dividend-Growth Stocks for 2023
As volatility and uncertainty triggered by Fed's policy tightening and recessionary fears persist in the stock market ahead of the New Year, dividend investing seems to be a better bet. Though it does not offer dramatic price appreciation, the strategy is a major source of consistent income for investors to create wealth when returns from the equity market are at risk.
Honing in on stocks with a history of dividend growth leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend-paying stocks or those with high yields. We have selected five dividend growth stocks — Archer-Daniels-Midland Company, Cardinal Health Inc., Insperity Inc., Deere & Co. and H&R Block Inc. — that could be compelling picks for your portfolio.
Why Dividend Growth?
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 is likely in the future.
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.
Here are five of the 13 stocks that fit the bill:
Illinois-based Archer-Daniels is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. ADM has an expected earnings growth rate of 43.9% for this year and delivered an average earnings surprise of 26.22%.
Archer-Daniels has a Zacks Rank #2 and a Growth Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
Ohio-based Cardinal Health is a nation-wide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. The company saw solid earnings estimate revision of 3 cents over the past 30 days for the fiscal year (ending June 2023) and has an estimated earnings growth rate of 5.1%.
Cardinal Health has a Zacks Rank #2 and a Growth Score of B.
Texas-based Insperity provides an array of human resources and business solutions designed to improve business performance. The company has an estimated earnings growth rate of 34.2% for this year and delivered an average earnings surprise of 0.64% for the past four quarters.
Insperity has a Zacks Rank #2 and a Growth Score of B.
Illinois-based Deere & Co. is the world's largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. The stock saw a solid earnings estimate revision of 57 cents over the past 30 days for the fiscal year (ending October 2023) and has an estimated earnings growth rate of 19.5%.
Deere & Company carries a Zacks Rank #2 and a Growth Score of A.
Missouri-based H&R Block is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself tax solutions and other products and services associated with income tax return preparation in the United States, Canada and Australia. H&R Block has an expected earnings growth rate of 8.3% for the fiscal year (ending June 2023) and delivered an average earnings surprise of 13.93% in the past four quarters.
H&R Block has a Zacks Rank #2 and Growth Score of A.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2032412/5-top-ranked-dividend-growth-stocks-for-2023
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Strong Stocks that Should Be in the News
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Deere & Company (DE) : Free Stock Analysis Report
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
H&R Block, Inc. (HRB) : Free Stock Analysis Report
Insperity, Inc. (NSP) : Free Stock Analysis Report
