5 Dividend Growth Stocks to Secure Your Portfolio

Core Viewpoint - Wall Street is experiencing volatility at the start of 2025 due to rising inflation fears, uncertainty regarding future Fed rate cuts, and ambiguity over Trump's tariff policies, leading investors to explore dividend investing as a strategy to protect their portfolios from downside risk [1] Group 1: Dividend Investing Strategy - Dividend investing does not provide dramatic price appreciation but serves as a consistent income source, helping investors create wealth when equity market returns are uncertain [2] - Stocks with a history of dividend growth are typically mature companies, less susceptible to market swings, providing a hedge against economic and political uncertainty [3] - These stocks offer downside protection through consistent payout increases, supported by strong fundamentals such as sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets [4] Group 2: Selection Criteria for Dividend Growth Stocks - Stocks selected for dividend growth should have a 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [5] - Additional criteria include 5-Year Historical Sales Growth greater than zero, 5-Year Historical EPS Growth greater than zero, and a Next 3-5 Year EPS Growth Rate greater than zero, ensuring companies can sustain dividend payments [6] - A Price/Cash Flow ratio less than the industry average indicates undervaluation, while a 52-Week Price Change greater than the S&P 500 ensures better performance over the past year [7] Group 3: Featured Dividend Growth Stocks - InterDigital, Inc. (IDCC) is a pioneer in advanced mobile technologies with a Zacks Rank 1 and a Growth Score of B, indicating strong potential [8][9] - Fox Corporation (FOX) has a Zacks Rank 1 and an expected earnings growth rate of 13.99% for the fiscal year ending June 2025, with an average earnings surprise of 17.64% in the past four quarters [10] - Broadcom Inc. (AVGO) has a Zacks Rank 2 and an expected earnings growth rate of 29.4% for the fiscal year ending October 2025, with solid earnings estimate revisions [11] - Greenbrier Companies Inc. (GBX) is a leading supplier in transportation equipment with a Zacks Rank 1 and an estimated growth rate of 18.95% [12] - Acuity Brands Inc. (AYI) manufactures lighting fixtures and has a Zacks Rank 2 with an estimated growth rate of 8.35% [13][14]