Zacks.com featured highlights Cboe Global Markets, PACCAR, Installed Building Products, Arcos Dorados and Global Industrial
For Immediate Release
Chicago, IL – December 19, 2023 – Stocks in this week’s article are Cboe Global Markets CBOE, PACCAR Inc. PCAR, Installed Building Products, Inc. IBP, Arcos Dorados Holdings Inc. ARCO and Global Industrial Co. GIC.
5 Excellent Dividend Growth Stocks to Buy Now
Dividend investing remains a popular strategy. Though the strategy doesn’t offer dramatic price appreciation, it is a major source of consistent income for investors in any type of market. This approach offers a unique blend of income and growth potential, appealing to a broad range of investors.
Additionally, it can provide a sense of security in times of market uncertainty or downturns, as dividend-paying stocks can reduce the volatility of a portfolio and tend to outperform in a choppy market. In particular, focusing on the growth level in this strategy leads to higher returns.
Stocks with a strong history of year-over-year dividend growth form a healthy portfolio with a greater scope of capital appreciation, as opposed to simple dividend-paying stocks or those that have high yields. We have selected five dividend growth stocks — Cboe Global Markets, PACCAR Inc., Installed Building Products, Inc., Arcos Dorados Holdings Inc. and Global Industrial Co. — that seem excellent choices for your portfolio.
Why is Dividend Growth Better?
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 increases 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.
Here are five stocks that fit the bill:
Illinois-based Cboe Global is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. The company saw a positive earnings estimate revision of 9 cents over the past 30 days for the next year. It has an estimated earnings growth rate of 5.25%.
Cboe Global currently sports a Zacks Rank #1 and has a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Washington-based PACCAR is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. The company delivered an average earnings surprise of 15.99% for the past four quarters.
PACCAR has a Zacks Rank #2 and a Growth Score of B.
Ohio-based Installed Building Products operates as a residential insulation installer in the United States. The company also installs complementary building products, including garage doors, rain gutters, shower doors, closet shelving and mirrors. Installed Building Products saw a positive earnings estimate revision of 25 cents for the next year over the past 30 days. It has an estimated earnings growth rate of 6.4%
Installed Building Products has a Zacks Rank #2 and a Growth Score of A at present.
Argentina-based Arcos Dorados operates as a franchisee of McDonald's, with its operations divided among Brazil, North Latin America, South Latin America and the Caribbean divisions. It also runs quick-service restaurants in Latin America and the Caribbean. Arcos Dorados saw a positive earnings estimate revision of 7 cents for the next year over the past 30 days and has an estimated earnings growth rate of 135.4%.
Arcos Dorados has a Zacks Rank #1 and a Growth Score of A.
New York-based Global Industrial is a provider of industrial products principally in North America. The stock has an estimated earnings growth rate of 11.1% for the next year and delivered an average earnings surprise of 8.55% for the past four quarters.
Global Industrial currently has a Zacks Rank #2 and a Growth Score of A.
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PACCAR Inc. (PCAR) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
Global Industrial Company (GIC) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
Installed Building Products, Inc. (IBP) : Free Stock Analysis Report
