For Immediate Release
Chicago, IL – January 10, 2020 – Stocks in this week’s article are Marriot Vacations Worldwide Corporation VAC, SS&C Technologies Holdings Inc. SSNC, Target Corp. TGT, Booz Allen Hamilton Holding Corp. BAH and The Toro Company TTC.
Unbeatable Dividend Stocks for Growth
In a low interest rate environment and an aging bull market, dividend stocks are in demand given investors’ drive for higher income. In particular, the Fed has signaled that it will keep interest rates steady this year after three rate cuts last year, raising the appeal for dividend-paying stocks.
Further, dividend-paying securities are the major sources of consistent income when returns from the equity market are at risk. In particular, focusing on growth level in this strategy leads to higher returns.
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.
Moreover, a history of dividend growth year over year leads to a healthy portfolio with greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields. 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.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/709626/7-unbeatable-dividend-stocks-for-growth
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SS&C Technologies Holdings, Inc. (SSNC) : Free Stock Analysis Report
Marriot Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Toro Company (The) (TTC) : Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
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