For Immediate Release
Chicago, IL - March 16, 2018 - Stocks in this week's article include: Avery Dennison Corporation AVY , Owens Corning Inc. OC , Columbia Sportswear Company COLM , Intel INTC and H&E Equipment Services Inc. HEES .
Screen of the Week of Zacks Investment Research:
5 Dividend Stocks with Growth Potential to Bet On
Volatility and uncertainty in the stock market have raised the appeal of dividend growth stocks. Trump's massive tax cut is also attracting investors to these stocks. This is because lower corporate taxes would boost companies' profitability leading to fatty dividends and in turn lead to outperformance of stocks that have a history of year-over-year dividend growth.
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 a 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.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/295782/5-dividend-stocks-with-growth-potential-to-bet-on
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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.
Strong Stocks that Should Be in the News
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Contact: Jim Giaquinto
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