For Immediate Release
Chicago, IL – December 26, 2019 – Stocks in this week’s article are Lithia Motors Inc. LAD, D.R. Horton, Inc. DHI, McGrath RentCorp MGRC, SS&C Technologies Holdings Inc. SSNC and The Allstate Corp. ALL.
5 Top-Ranked Dividend Growth Stocks for 2020
With the bull market raging on, dividend stocks seem a better bet for 2020. This is because these products offer payouts and stability simultaneously. Investors can witness rise in current income while anticipating capital appreciation to continue irrespective of market conditions.
In particular, focusing on growth level in this strategy leads to higher returns. Stocks with a strong history of dividend growth year over year form a healthy portfolio with greater scope for capital appreciation as opposed to simple dividend-paying stocks or those that have 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.
Moreover, a history of dividend growth year over year leads to a healthy portfolio with greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields. 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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/685671/5-topranked-dividend-growth-stocks-for-2020
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Lithia Motors, Inc. (LAD): Free Stock Analysis Report
D.R. Horton, Inc. (DHI): Free Stock Analysis Report
McGrath RentCorp (MGRC): Free Stock Analysis Report
SS&C Technologies Holdings, Inc. (SSNC): Free Stock Analysis Report
The Allstate Corporation (ALL): Free Stock Analysis Report
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