Yahoo Finance Zacks.com featured highlights Greenbrier, Owens Corning, Leidos, H&R Block and NetApp
For Immediate Release
Chicago, IL – May 16, 2024 – Stocks in this week’s article are The Greenbrier Companies Inc. GBX, Owens Corning Inc. OC, Leidos Holdings Inc. LDOS, H&R Block Inc. HRB and NetApp NTAP.
4 Dividend Stocks to Boost Portfolio Growth
Though the stock market regained momentum at the start of May, sticky inflation, uncertainty surrounding the timing of Fed rate cuts and a slowing economy continue to weigh on investors’ sentiment. This has raised the appeal for dividend investing.
This is especially true as dividend stocks are major sources of consistent income for investors to create wealth when returns from the equity market are at risk, even though these do not offer dramatic price appreciation. Dividend-paying stocks can also serve as a hedge against inflation.
In fact, stocks with a strong history of year-over-year dividend growth form a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend-paying stocks or those that have high yields. We have selected five dividend growth stocks — The Greenbrier Companies Inc., Owens Corning Inc., Leidos Holdings Inc., H&R Block Inc. and NetApp — that could be solid choices for your portfolio.
Why Dividend Growth Strategy?
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.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.
Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
As a result, picking dividend growth stocks appear as a winning strategy when some other parameters are also included.
Here are five of the seven stocks that fit the bill:
Oregon-based Greenbrier is a leading supplier of transportation equipment and services to the railroad and related industries. The company has an estimated growth rate of 39.1% for the fiscal year (ending August 2024). It delivered an average earnings surprise of 32.96% for the past four quarters.
Greenbrier has a Zacks Rank #1 and a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ohio-based Owens Corning is a world leader in building materials systems and composite solutions. The company saw a positive earnings estimate revision by $1.60 over the past 30 days for this year. The expected earnings growth rate is 6.6%.
Owens Corning has a Zacks Rank #2 and a Growth Score of B.
Delaware-based Leidos Holdings is a global science and technology leader that serves the defense, intelligence, civil and health markets. The stock saw a positive earnings estimate revision of 61 cents over the past 30 days for this year. The expected earnings growth rate is 14.7%.
Leidos Holdings has a Zacks Rank #1 and a Growth Score of B.
Missouri-based H&R Block is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself tax solutions and other products and services associated with income tax return preparation in the United States, Canada and Australia. H&R Block saw a positive earnings estimate revision of 4 cents over the past 30 days for the fiscal year (ending June 2024) with an expected earnings growth rate of 12.3%.
H&R Block has a Zacks Rank #2 and a Growth Score of A.
California-based NetApp provides enterprise storage as well as data management software and hardware products and services. The stock delivered an average earnings surprise of 12.30% in the last four quarters and has an estimated earnings growth rate of 2.8% for the fiscal year (ending April 2025).
NetApp currently has a Zacks Rank #2 and has a Growth Score of B.
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NetApp, Inc. (NTAP) : Free Stock Analysis Report
H&R Block, Inc. (HRB) : Free Stock Analysis Report
Owens Corning Inc (OC) : Free Stock Analysis Report
Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
