3 Reliable Dividend Growth Stocks to Escape Market Turmoil

Core Viewpoint - Wall Street is facing significant losses due to uncertainty surrounding the new U.S. administration's economic tariffs, which are anticipated to increase consumer prices and negatively impact spending and the overall U.S. economy [1] Group 1: Market Trends - Investors are adopting a defensive stance, focusing on products that provide stability and safety in a volatile market, leading to increased interest in dividend stocks [2] - Dividend stocks are recognized for their ability to provide consistent income, which is crucial for wealth creation when equity market returns are uncertain [2] Group 2: Investment Strategy - Selecting stocks with a history of dividend growth can lead to a healthier portfolio with better capital appreciation potential compared to merely high-yield dividend stocks [3] - Stocks with strong dividend growth histories are typically from mature companies, making them less vulnerable to market fluctuations and providing a hedge against economic and political uncertainties [4] Group 3: Stock Selection Criteria - Key criteria for selecting dividend growth stocks include: - 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [6] - 5-Year Historical Sales Growth greater than zero, reflecting strong revenue growth [7] - 5-Year Historical EPS Growth greater than zero, showing solid earnings growth [7] - Next 3-5 Year EPS Growth Rate greater than zero, suggesting expected earnings growth to sustain dividend payments [7] - Price/Cash Flow less than the industry average, indicating undervaluation [8] - 52-Week Price Change greater than the S&P 500, ensuring better performance over the past year [8] - Top Zacks Rank of 1 (Strong Buy) or 2 (Buy), indicating strong potential for outperformance [8] - Growth Score of B or better, which, when combined with a strong Zacks Rank, offers the best upside potential [9] Group 4: Featured Stocks - Tapestry, Inc. (TPR) has an estimated earnings growth rate of 14.4% for the fiscal year ending June 2025 and a Zacks Rank 1 with a Growth Score of A [10] - Gildan Activewear Inc. (GIL) has an estimated earnings growth rate of 16% for this year and a Zacks Rank 2 with a Growth Score of B [11] - Broadcom Inc. (AVGO) has an expected earnings growth rate of 35.5% and a Zacks Rank 2 with a Growth Score of A [12]