Rising interest rates and wobbly markets may roil some stocks, but they barely put a dent in ones with steadily rising dividends. Buoyed by growing earnings, these high-quality stocks perform well in different economic scenarios, say experts. Experts believe that these cash-rich companies will do even better this year. Swooning markets have indeed hit the Dividend Aristocrats Index too.
But that index has had a 4.
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Though the Dividend Aristocrats Index doesn't match other high-growth stocks during go-go years, it does excel over time. Stocks with rising dividends, he adds, perform well because they're good-quality companies. They're less volatile than other stocks.
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Dividend-growth stocks look good this year, too. That cash is increasingly used to reward shareholders with dividends, and it shows no signs of slowing. In third-quarterdividend cash payouts per share were So Stovall recommends looking at companies with rising dividends, increasing earnings and good market share. The dividend yield is 3.
Lincoln Electric Holdings LECOwhich makes robotic welding packages and other products, also has a buy rating. Its earnings, which have steadily grown for several years, help fuel the 2.
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It's also a member of the Dividend Aristocrats Index, which also includes MedtronicKimberly-ClarkPepsico and many other companies. Dividend-paying companies can usually ride out different economic cycles, too. However, stock buybacks are more tied to the economy. Josh Peters, editor of the "Morningstar Dividend Investor" newsletter, prefers to look for out-of-favor dividend stock plays.
The consumer goods company Procter and Gamble PGalso included in the Dividend Aristocrats Index, is one of Peters' picks. The stock, which yields 3.
The utility Duke Energy DUK is also big and unloved, Peters said. Management has done a good job.
Sandy Pomeroy, portfolio manager of the Neuberger Berman Equity Income NBHAX fund, sees more companies rewarding their shareholders with dividends in One fund holding Eli Lilly LLY will start raising its dividend again, she said. The pharmaceutical company has a number of new drugs set to launch, and they will help Lilly grow earnings substantially, she said, adding, "You can own Lilly forever.
The Florida utility NextEra Energy NEE is another fund holding. Though utilities have performed poorly, she added, NextEra has a large renewable business in wind and solar. It will also increase its dividend, currently 2. Asia Europe Options strategies diagonal spread Commodities Currencies Bonds Funds ETFs Investing Trading Nation Trader Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Martingale standard for binary options winning It Entrepreneurs Leadership Careers Money Specials Shows Video Top Video Latest Video U.
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