Zacks.com Highlights: Jones Lang LaSalle, Broadcom, Rockwell Collins, Lam Research And Home Depot

 | Dec 07, 2017 09:17PM ET

For Immediate Release

Chicago, IL – Dec 8, 2017 - Stocks in this week’s article include: Jones Lang LaSalle Inc. (NYSE:JLL) , Broadcom Ltd. (NASDAQ:AVGO) , Rockwell Collins, Inc. (NYSE:COL) , Lam Research Corp. (NASDAQ:LRCX) and The Home Depot Inc. (NYSE:HD) .

Screen of the Week of Zacks Investment Research:

Bet on Tax Reform with These Dividend Growth Stocks

With President Donald Trump closer to his major legislative move — the biggest tax overhaul in decades — investors have started chasing dividend growth stocks. This is because lower corporate taxes would boost companies’ profitability leading to fatty dividends and in turn benefit stocks having a history of dividend growth year over year.

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 thus act as a hedge against economic or political uncertainty. At the same time, these offer downside protection with their consistent increase in payouts.

These stocks have superior fundamentals as opposed to their traditional dividend counterparts such as a sustainable business model, a long track record of profitability, rising cash flows, good liquidity, strong balance sheet and some value characteristics. They have a history of outperformance over the long term but not necessarily high dividend yields. All these makes dividend growth a quality and promising investment metric for the long term.

Further, a history of strong dividend growth indicates that dividend increase in the future is likely. This makes the portfolio healthy and safe. Though these stocks have a long history of outperformance compared with the broader stock market or any other dividend paying stock, it does not necessarily mean that they have the highest yields.

And that's what we're screening for today…

For the rest of this Screen of the Week article please visit Zacks.com at: Zacks Investment Research

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