For immediate release
Chicago, IL – April 8, 2022 – Stocks in this week’s article are The Kroger Co. KR, NVIDIA Corp. NVDA, Jones Lang LaSalle Inc. JLL, Paychex Inc. PAYX and McKesson Corp. MCK.
5 Dividend Growth Stocks for Safe Income in Volatility
Dividend investing is all the rage amid volatility and uncertainty triggered by the ongoing conflict in Ukraine and its inflationary effect on prices. This is especially true since they are major sources of consistent income for investors in any type of market, although they do not offer dramatic price appreciation.
In fact, stocks with a solid track record of year-over-year dividend growth make for a healthy portfolio with a greater scope for capital appreciation, as opposed to simple dividend-paying stocks or those with high yields. We picked five dividend growth stocks — The Kroger Company., NVIDIA Corp., Jones Lang LaSalle Inc., paychex inc.and McKesson Corp. – which could be compelling choices in a volatile market environment.
Dividend growth: a winning strategy
Stocks that have a strong track record of dividend growth belong to mature companies, which are less sensitive to major market fluctuations and act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these provide downside protection with their steady increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising long-term investment. These include a sustainable business model, a long trajectory of profitability, growing cash flow, good liquidity, a strong balance sheet and certain value characteristics. Additionally, a history of strong dividend growth indicates that an increase in dividends is likely in the future.
While these stocks don’t necessarily have the highest yields, they have outperformed for a longer period of time than the broader stock market or any other dividend-paying stock.
Here are the five of the 17 stocks that fit the bill:
Based in Ohio The Kroger operates as a retailer in the United States. The Company operates a combination of food and drug stores, multi-department stores, market stores and price impact warehouses. The stock saw a positive earnings estimate revision of 21 cents for the fiscal year (ending January 2023) and has an expected earnings growth rate of 2.4%.
Kroger has a Zacks Rank #1 and a Growth Score of B. You can see the full list of today’s Zacks #1 Rank stocks here.
Based in California Nvidia is the world leader in visual computing technologies and the inventor of the graphics processing unit. The stock has an expected earnings growth rate of 25% for the fiscal year (ending January 2023) and generated an average four-quarter earnings surprise of 7.04%.
NVIDIA has a Zacks Rank #2 and a Growth Score of B.
Based in Chicago Jones Lang is a leading full-service real estate company that provides business management, financial and investment services to businesses and other real estate owners, users and investors worldwide. Jones Lang saw a positive earnings estimate revision of 27 cents in the past month for this year with a modest expected earnings growth rate of 0.05%.
Jones Lang has a Zacks Rank #1 and Growth Score of A.
Based in New York Payment is a leading provider of integrated human capital management solutions for payroll, human resources, pension and insurance services for small and medium-sized businesses. The stock has seen a strong earnings estimate revision of 11 cents for the fiscal year (ending May 2022) over the past 30 days and has an expected earnings growth rate of 23.36%.
Paychex has a Zacks Rank #2 and a Growth Score of B.
Based in California McKesson is a healthcare services and information technology company. The stock has an expected earnings growth rate of 39% for the fiscal year (ending March 2022) and generated an average four-quarter earnings surprise of 20.6%.
McKesson has a Zacks Rank No. 2 and a Growth Score of B.
For the rest of this article on Screen of the Week, please visit Zacks.com at: https://www.zacks.com/stock/news/1894671/5-dividend-growth-stocks-for-safe-income-amid-volatility
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