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Zacks.com featured highlights: Broadcom, Packaging Corporation of America, EnerSys and Citigroup

For Immediate Release

Chicago, IL - January 04, 2017 - Stocks in this week's article include Broadcom Limited (Nasdaq:AVGO - Free Report), Packaging Corporation of America (NYSE:PKG - Free Report), EnerSys (NYSE:ENS - Free Report) and Citigroup Inc. (NYSE:C - Free Report).

Screen of the Week of Zacks Investment Research:

Promising Dividend Growth Stocks for 2017

Going ahead into the New Year, investors are looking for both income and growth in their portfolios. This can easily be achieved by honing in on stocks that not only pay dividends but also consistently increase their payout.

Dividend Growth: A Winning Strategy

Stocks that have a strong history of dividend growth as opposed to those that pays high yields form a healthy portfolio with more scope for capital appreciation. This is because these stocks act as a hedge against economic or political uncertainty as well as stock market volatility. Simultaneously, these offer outsized payouts or sizable yields on a regular basis irrespective of the market direction.

Additionally, these stocks have superior fundamentals compared to other dividend paying stocks as dividend growth reflects a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. All these make dividend growth a quality and promising investment for the long term.

However, the long history of outperformance by dividend growth stocks compared with the broader stock market or any other dividend paying stocks does not necessarily mean that they have the highest yields.

Here are the screening parameters that could result in a winning dividend growth portfolio:

5-Year Historical Dividend Growth greater than zero : This selects stocks with a solid dividend growth history.

5-Year Historical Sales Growth greater than zero : This represents stocks with a strong record of growing revenue.

5-Year Historical EPS Growth greater than zero : This represents stocks with a solid earnings growth history.

Next 3-5 Year EPS Growth Rate greater than zero : This represents the rate at which a company's earnings are expected to grow. Improving earnings should help companies sustain dividend payments.

Price/Cash Flow less than M-Industry : A ratio less than M-industry indicates that the stock is undervalued in that industry and that an investor needs to pay less for a better cash flow generated by the company.

52-Week Price Change greater than S&P 500 (Market Weight) : This ensures that the stock appreciated more than the S&P 500 over the past one year.

Zacks Rank Less than 3 : Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environment.

VGM Style Score of B or better : This is simply a weighted combination of Value, Growth and Momentum. This when combined with a Zacks Rank #1 or #2 offers the best upside potential.

Market Capitalization greater than $2 billion : We have eliminated small caps stocks to ensure better flexibility and tradability.

Here are four of the 15 stocks that fit the bill:

Broadcom Limited (Nasdaq:AVGO - Free Report) : This Singapore-based company designs, develops, and supplies a range of complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The stock saw a solid earnings estimate revision of 70 cents for the current fiscal year over the past 90 days with an expected earnings growth rate of 24.72%. The stock has a VGM Style Score of B and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Packaging Corporation of America (NYSE:PKG - Free Report) : This Illinois-based company is one of the largest producers of containerboard in the United States and one of the largest manufacturers of corrugated packaging products. The stock delivered an average positive earnings surprise of 4.98% in three of the past four quarters and has an earnings growth rate of 6.56% for 2016. It has a Zacks Rank #2 and a VGM Style Score of A.

EnerSys (NYSE:ENS - Free Report) : This Pennsylvania-based company is a global leader in stored energy solutions for industrial applications. It saw solid earnings estimate revision of 19 cents for the current fiscal year over the past three months, with an expected earnings growth of 16.54%. It has a Zacks Rank #1 and a VGM Style Score of B.

Citigroup Inc. (NYSE:C - Free Report) : This New York-based company is a global financial services company that provides various financial products and services for consumers, corporations, governments, and institutions worldwide. The stock saw earnings estimate revision of 10 cents for 2016 over the past 90 days and delivered a positive earnings surprise of 1.73% in three of the past four quarters. Citigroup has a Zacks Rank #2 and a VGM Style Score of B.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today .

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.

Disclosure: Performance information for Zacks' portfolios and strategies are available at:https://www.zacks.com/performance.

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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.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.

This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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BROADCOM LTD (AVGO): Free Stock Analysis Report

PACKAGING CORP (PKG): Free Stock Analysis Report

ENERSYS INC (ENS): Free Stock Analysis Report

CITIGROUP INC (C): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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