For Immediate Release
Chicago, IL – November 25, 2022 – Stocks in this week’s article are Archer-Daniels-Midland Co. ADM, McKesson Corp. MCK, ParkerHannifin Corp. PH, Booz Allen Hamilton Holding Corp. BAH and Darden Restaurants Inc. DRI.
5 Solid Dividend Growth Stocks to End Thanksgiving Week
Thanksgiving is coming up, and it's time to stuff dividend stocks with strong growth prospects in your portfolio for market-beating returns. This is especially true as the holiday-shortened week is usually a bullish feast for stock investors, even with low volumes, as consumer spending is expected to rise.
Stocks with a history of dividend growth year over year form 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 Co., McKesson Corp., ParkerHannifin Corp., Booz Allen Hamilton Holding Corp. and Darden Restaurants Inc. — that could be compelling picks for your portfolio this Thanksgiving.
Inside Dividend Growth Strategy
Stocks that have a strong history of dividend growth belong to mature companies 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 a 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.
As a result, picking dividend growth stocks appears as a winning strategy when some other parameters are also included.
Here are five of the 18 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 seen a solid earnings estimate revision of 51 cents for this year and an expected earnings growth rate of 42.58%.
Archer-Daniels has a Zacks Rank #1 and Growth Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
California-based McKesson is a health care services and information technology company. The stock has seen a solid earnings estimate revision of 35 cents over the past 30 days for the fiscal year (ending March 2023) and has an expected earnings growth rate of 4.5%.
McKesson has a Zacks Rank #2 and Growth Score of A.
Ohio-based ParkerHannifin is a global diversified manufacturer of motion & control technologies and systems. It provides precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets. The stock saw a solid earnings estimate revision of 56 cents over the past 30 days for the fiscal year (ending June 2023) and has an estimated earnings growth rate of 2.19%.
ParkerHannifin has a Zacks Rank #2 and Growth Score of B.
Virginia-based Booz Allen is engaged in providing management and technology consulting services to the U.S. government in the defense, intelligence and civil markets. The company saw positive earnings estimate revision of 9 cents over the past 30 days for the fiscal year (March 2020) with an estimated earnings growth rate of 5.7%.
Booz Allen has a Zacks Rank #2 and Growth Score of A.
Florida-based Darden Restaurants is one of the largest casual dining restaurant operators worldwide. The company has an expected earnings growth rate of 3.78% for the fiscal year (ending May 2023).
Darden Restaurants has a Zacks Rank #2 and Growth Score of B.
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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/2021255/5-solid-dividend-growth-stocks-for-thanksgiving
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