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5 Top-Ranked Dividend Growth Stock Picks for the Second Half of 2025
ZACKS· 2025-06-30 15:00
Core Insights - Dividend investing is gaining traction in the first half of 2025 due to market volatility and uncertainty, despite U.S. stocks nearing record highs driven by optimism in trade talks, corporate earnings, and AI momentum [1] - Stocks with a history of dividend growth tend to outperform in volatile markets, providing a more stable investment option compared to high-yield stocks [2][4] Dividend Growth Stocks - Five dividend growth stocks identified as solid investment choices for the second half of 2025 are Agnico Eagle Mines Limited (AEM), NetEase Inc. (NTES), Qifu Technology Inc. (QFIN), UGI Corporation (UGI), and McKesson Corporation (MCK) [3][9] - These stocks meet strict criteria for dividend, sales, and earnings growth, showing positive earnings revisions and strong Growth Scores [9] Investment Rationale - Stocks with a strong history of dividend growth are typically mature companies, providing a hedge against economic and political uncertainties [4] - These companies exhibit superior fundamentals, including sustainable business models, profitability, rising cash flows, and strong balance sheets, indicating potential for future dividend increases [5] Performance Metrics - Selected stocks have shown a 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [6] - Additional criteria include positive historical sales and earnings growth, as well as expected future earnings growth, which supports sustained dividend payments [7] Valuation and Ranking - Stocks are evaluated based on Price/Cash Flow ratios being less than the industry average, indicating undervaluation [8] - The selected stocks have outperformed the S&P 500 over the past year and hold Zacks Rank 1 (Strong Buy) or 2 (Buy), suggesting strong market performance potential [8][10]
3 Transportation Dividend Growth Stocks to Keep an Eye On
ZACKS· 2025-06-23 15:11
Industry Overview - The Zacks Transportation sector is experiencing multiple challenges, including increased expenses, inflation-driven high interest rates, a decline in freight demand, and supply chain issues [1][3] - Geopolitical uncertainties, particularly related to oil prices due to U.S. strikes on Iran, are raising concerns about a potential supply shock that could adversely affect the U.S. economy [2] Financial Performance - The transportation sector has seen a decline of 10.1% year over year, contrasting with the S&P 500's growth of 9.3% [3] Investment Opportunities - Despite the challenges, transportation sector stocks, particularly those with a focus on dividend growth, are recommended for investors [5][6] - Companies with a consistent history of increasing dividends are seen as resilient and capable of providing reliable income and potential long-term capital appreciation [6][7] Dividend Increases - Expeditors International of Washington, Inc. (EXPD) announced a 5.5% dividend hike, raising its quarterly dividend from $0.73 to $0.77, with a payout ratio of 24% and a five-year dividend growth rate of 8.6% [11] - FedEx Corporation (FDX) approved a 5.1% dividend increase, raising its quarterly dividend to $1.45 per share, with a payout ratio of 31% and a five-year dividend growth rate of 22% [12] - Delta Air Lines, Inc. (DAL) announced a significant 25% dividend hike, increasing its quarterly dividend to $0.1875 per share, with a payout ratio of 10% [13] Investment Criteria - A screening process for transportation stocks includes a dividend payout ratio of less than 60% and a dividend yield greater than 1%, ensuring sustainability and growth potential [9][10]
Idacorp: Cash In On The AI Boom And Buy Now
Seeking Alpha· 2025-06-13 12:15
Core Insights - The article discusses the author's journey in dividend growth investing and the importance of financial independence [1] Group 1: Author's Background - The author has been investing since September 2017 and has a long-standing interest in dividend investing since 2009 [1] - The author runs a blog called "Kody's Dividends," which documents the journey towards financial independence through dividend growth investing [1] Group 2: Community Engagement - The author expresses gratitude for the blog that introduced them to the Seeking Alpha community as an analyst [1] - The author contributes regularly to various financial platforms, including Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital [1]
Visa: A Cornerstone Of My Portfolio Since 2016 - And Its Evolution Keeps Me Bullish
Seeking Alpha· 2025-06-09 19:50
Core Viewpoint - Visa is considered a 'hold forever' stock, reflecting strong conviction in the company's long-term potential and the overall industry outlook [1]. Company Insights - Visa has been a cornerstone of the portfolio since 2016, indicating a long-term investment strategy focused on stability and growth [1]. - The investor emphasizes a focus on dividend growth investing and value, suggesting that Visa aligns well with these investment strategies [1]. Industry Outlook - The overall industry outlook remains positive, reinforcing the belief in Visa's enduring value and potential for financial freedom for investors [1].
American Healthcare REIT's Growth Story Is Still Young
Seeking Alpha· 2025-06-05 12:05
Group 1 - The population of seniors aged 80 and above in the United States is projected to increase significantly, indicating a growth trend in the senior demographic [1] - The article emphasizes the importance of high-quality dividend growth stocks for generating a safe and growing passive income stream [1] - The focus of the investment strategy is on portfolio income growth rather than total returns, with an ideal holding period described as "lifelong" [1] Group 2 - The author, Austin Rogers, is a REIT specialist with a background in commercial real estate, contributing to the High Yield Landlord investment group [1] - High Yield Landlord is noted as one of the largest real estate investment communities on Seeking Alpha, providing exclusive research and multiple real money portfolios [1]
OFS Capital: The Dividend Needs To Be Reduced
Seeking Alpha· 2025-06-01 12:15
Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The investment approach focuses on high-quality dividend stocks and assets that provide long-term growth potential, which can significantly contribute to income generation [1]. - A balanced portfolio that includes both growth and income-generating assets can lead to efficient investment income while maintaining a total return aligned with the S&P [1].
3 Dividend Growth Stocks to Buy in June and Hold Forever
The Motley Fool· 2025-06-01 09:47
Core Viewpoint - High-yield dividend stocks like Prologis, MPLX, and McCormick not only offer attractive yields but also have the potential for rapid dividend growth, making them appealing long-term investment opportunities. Group 1: Prologis - Prologis is the largest owner of logistics-related real estate globally, currently offering a 3.6% yield [3] - The company has a strong credit rating, allowing it to borrow at favorable rates, which benefits its tenants [4] - Amazon is its largest tenant, contributing only 5% of total rent, indicating stability in dividend payouts even if Amazon's performance declines [5] - Prologis has raised its dividend payout by 11.7% annually over the past five years, with less than 30% of its net operating income coming from international markets, suggesting room for growth [6] Group 2: MPLX - MPLX is a midstream energy company with a significant focus on gas and crude oil transportation, offering a substantial 7.5% yield [8] - The company has a reliable revenue stream due to its ties with Marathon Petroleum, which enhances its ability to raise dividends [9] - MPLX has increased its dividend payout by 8.1% annually over the past decade, with a recent 12% year-over-year rise in net income indicating potential for further increases [9] Group 3: McCormick - McCormick, a leader in spices and flavorings, has paid dividends consistently since 1925 and has raised its payout for 38 consecutive years [11] - The company has increased its dividend payout by 8.4% annually over the past decade, although it faced challenges due to rising commodity costs [12] - Despite a 31% decline in stock price from its peak in 2020 and stagnant sales in the first quarter of 2025, McCormick expects adjusted earnings to rise by 6% this year [13] - Currently, McCormick offers a 2.5% yield, which could lead to a double-digit yield on cost for patient investors [14]
4 Solid Dividend Growth Stocks to Buy Now
ZACKS· 2025-05-29 15:00
Core Viewpoint - Wall Street is experiencing volatility due to uncertainty surrounding the new U.S. administration's economic tariffs, prompting investors to seek stability through dividend investing [1][2]. Investment Strategy - Dividend investing is highlighted as a strategy that offers income and stability, especially in a rocky market, despite not providing dramatic price appreciation [2]. - Stocks with a history of dividend growth are recommended for building a healthy portfolio with potential for capital appreciation [3][4]. Selected Dividend Growth Stocks - Four dividend growth stocks are identified as compelling picks: - NetEase Inc. (NTES) with an expected earnings growth rate of 10.6% and a Zacks Rank 1 [10]. - Fox Corporation (FOX) with an expected earnings growth rate of 32.4% and a Zacks Rank 1 [11]. - Qifu Technology Inc. (QFIN) with an expected earnings growth rate of 22.6% and a Zacks Rank 2 [12][13]. - UGI Corporation (UGI) with a positive earnings estimate revision and a Zacks Rank 2 [14][15]. Stock Selection Criteria - Stocks selected for dividend growth should have: - 5-Year Historical Dividend Growth greater than zero [6]. - 5-Year Historical Sales Growth greater than zero [7]. - 5-Year Historical EPS Growth greater than zero [7]. - Next 3-5 Year EPS Growth Rate greater than zero [7]. - Price/Cash Flow less than M-Industry [8]. - 52-Week Price Change greater than S&P 500 [8]. - Top Zacks Rank of 1 or 2 [8]. - Growth Score of B or better [9]. Company Fundamentals - Companies with strong fundamentals are characterized by sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets, making them promising long-term investments [5].
7 No-Brainer Dividend Growth Stocks to Buy Right Now
The Motley Fool· 2025-05-18 12:15
While many investors chase fleeting market trends, dividend growth investing offers something far more valuable. Namely, compounding wealth through businesses that pay you to own them. Moreover, elite dividend growth stocks, defined as those with five-year dividend growth rates above 6% and payout ratios under 75%, have a stellar record of delivering superior returns to the benchmark S&P 500.This outperformance reveals a deeper truth about exceptional businesses. Companies that consistently grow dividends f ...
Ride High But Stay Dry: Why I'm Accumulating Cash As The Market Rebounds
Seeking Alpha· 2025-05-17 12:05
Group 1 - The article discusses the offerings of High Yield Landlord, a prominent real estate investment community on Seeking Alpha, which provides exclusive research on the global REIT sector and multiple real money portfolios [1] - Austin Rogers, a REIT specialist, focuses on high-quality dividend growth stocks aimed at generating a safe and growing passive income stream, with a lifelong holding period in mind [1] - The community includes an active chat room and direct access to analysts, enhancing the investment experience for its members [1] Group 2 - The article does not provide any specific financial data or performance metrics related to the companies mentioned [2][3]