In a time of increased market volatility and inflation concerns, investors are seeking ways to balance income and growth in their portfolios. One strategy gaining popularity is investing in dividend growth stocks. While these stocks may not experience rapid price appreciation, they provide a steady source of income that can help investors build wealth, especially during uncertain market conditions.
Dividend growth stocks are companies that have a strong track record of increasing their dividend payouts year over year. These companies are typically more stable and less prone to market fluctuations, making them a valuable asset for investors looking to hedge against economic and political uncertainty. Additionally, dividend growth stocks often have solid fundamentals, such as a sustainable business model, consistent profitability, strong cash flows, and a healthy balance sheet.
When selecting dividend growth stocks, investors should consider a few key criteria, including historical dividend growth, sales growth, earnings per share growth, future earnings growth rate, valuation compared to industry peers, and price performance compared to the broader market. Stocks that meet these criteria are more likely to outperform over the long term.
Some dividend growth stocks that are currently attracting attention include NetApp, The Greenbrier Companies Inc., Applied Materials Inc., PACCAR Inc., and Dick’s Sporting Goods Inc. These companies have strong fundamentals, positive earnings growth prospects, and a history of increasing dividends, making them attractive options for investors seeking both income and growth potential.
Investors can further narrow down their choices by looking for stocks with a Zacks Rank of #1 (Strong Buy) or #2 (Buy) and a Growth Score of A or B. These stocks have shown the best upside potential according to research. By carefully selecting dividend growth stocks that meet these criteria, investors can build a well-rounded portfolio that offers both income and growth opportunities.
To explore more dividend growth stock options, investors can sign up for a free trial to the Research Wizard and start using screening tools to identify potential investment opportunities. By incorporating dividend growth stocks into their portfolio, investors can create a solid foundation for long-term wealth building and financial stability. If you’re looking to create your own investment strategies, the Research Wizard is a great tool to help you get started. It’s user-friendly, easy to understand, and intuitive. You can sign up for a free trial today and test out your ideas before making any investment decisions. Next time you come across an economic report, plug the information into the Research Wizard to see what insights you can uncover. Keep in mind that officers, directors, and employees of Zacks Investment Research may have positions in securities mentioned in this material. Performance information for Zacks’ portfolios and strategies is available at their website.