For Immediate Release
Chicago, IL – December 24, 2020 – Stocks in this week’s article are
Lennar Corp.
LEN
,
Microsoft Corp.
MSFT
,
Deere & Co.
DE
,
TeleTech Holdings Inc.
TTEC
and
KLA Corp.
KLAC
.
5 Top-Ranked Dividend Growth Stocks for 2021
The ultra-low rates and the COVID-19 pandemic have sent investors chasing after dividend stocks this year. Though the strategy doesn’t offer any dramatic price appreciation, it is a major source of consistent income for investors in any type of market.
Honing in on stocks with a history of dividend growth leads to a healthy portfolio, with greater scope of capital appreciation, as opposed to simple dividend-paying stocks or those with high yields.
Why Dividend Growth Investing Is Better?
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 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 appears as a winning strategy when some other parameters are also included.
For the rest of this Screen of the Week article please visit Zacks.com at:
https://www.zacks.com/stock/news/1200239/5-top-ranked-dividend-growth-stocks-for-2021
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the “#1 site for screening stocks” by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They’re virtually unknown to the general public. Yet today’s 220 Zacks Rank #1 “Strong Buys” were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year.
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