Zacks.com Highlights: Lam Research, Anthem, Science Applications International, Magna International And Dollar General
Zacks Investment Research | May 16, 2018 09:22PM ET
For Immediate Release
Chicago, IL – May 17, 2018 - Stocks in this week’s article include: Lam Research Corp. (NASDAQ:LRCX) , Anthem Inc. (NYSE:ANTM) , Science Applications International Corp. (NYSE:SAIC) , Magna International Inc. (NYSE:MGA) and Dollar General Corp. (NYSE:DG) .
Screen of the Week of Zacks Investment Research:
5 Top-Ranked Dividend Growth Stocks for Rising Rates
Though the prospect of faster-than-expected rates hikes and rising bond yields have diminished the appeal of dividend stocks, applying some smart beta strategies to the dividend investing world could fetch higher returns in a rising rate environment.
In particular, stocks that have a strong history of dividend growth are usually of high quality and deliver excellent risk-adjusted returns in the longer term. When compared with the ones that pay out high yields, dividend growth stocks form a healthy portfolio, with more scope for capital appreciation.
Inside Dividend Growth Stocks
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 as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
These stocks pose a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. All these superior fundamentals make dividend growth a promising investment as opposed to their traditional dividend counterparts. Further, a history of strong dividend growth indicates that a future hike is likely. This makes the portfolio healthy and safe.
Furthermore, these have a long history of outperformance over the long term. However, 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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