For Immediate Release
Chicago, IL – October 3, 2022 – Stocks in this week’s article are The Coca-Cola Co. KO, General Dynamics Corp. GD, AstraZeneca plc AZN, Boise Cascade BCC and Insperity Inc. NSP.
5 Dividend Growth Stocks to Beat Market Volatility
The year 2022 has been roiled by huge volatility and uncertainty, which have raised the appeal of dividend investing. Dividend stocks are major sources of consistent income for investors to create wealth when returns from the equity market are at risk even though these do not offer dramatic price appreciation.
In fact, 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 — The Coca-Cola Co., General Dynamics Corp., AstraZeneca plc, Boise Cascade and Insperity Inc. — that could be compelling picks amid market volatility.
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 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 than 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.
Here are the five of the 17 stocks that fit the bill:
Georgia-based Coca-Cola, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks; flavored and enhanced water, and sports drinks; juice, dairy, and plant–based beverages; tea and coffee; and energy drinks. Coca-Cola has an expected earnings growth rate of 6.03% for this year and delivered a four-quarter average earnings surprise of 9.85%.
Coca-Cola has a Zacks Rank #2 and a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Virginia-based General Dynamics is engaged in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. It has an expected earnings growth of 5.28% and delivered an average four-quarter earnings surprise of 2.47%.
General Dynamics has a Zacks Rank #2 and a Growth Score of B.
United Kingdom-based AstraZeneca is one of the largest biopharmaceutical companies in the world. The company has an expected earnings growth rate of 24.91% for this year and delivered a four-quarter average earnings surprise of 3.88%.
AstraZeneca has a Zacks Rank #2 and a Growth Score of B.
Idaho-based Boise Cascade operates as a wood products manufacturer and building materials distributor. It has seen a solid earnings estimate revision of 42 cents for this year over the past month and has an expected earnings growth rate of 13.97%.
Boise Cascade has a Zacks Rank #2 and a Growth Score of B.
Texas-based Insperity provides an array of human resources and business solutions designed to improve business performance. The company has an expected earnings growth rate of 25.32% for this year.
Insperity has a Zacks Rank #2 and Growth Score of B.
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General Dynamics Corporation (GD) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
CocaCola Company The (KO) : Free Stock Analysis Report
Insperity, Inc. (NSP) : Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
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