The printing business is profitable, especially in selling supplies. And over the years, HP has been holding its own in the PC market, although the long-term outlook is softer as mobile devices increasingly are used for computing.
Nevertheless, the company generated "strong" free cash flow FCF — the cash remaining after a company has paid its expenses, interest on debt, taxes and long-term investments to grow its business — in the quarter.
Longer term, HP will benefit from the current "hybrid model" for working, learning, collaborating and socially interacting as a "permanent" state of affairs for consumers, businesses and institutions, Kelleher says. HPQ has earned its place among these safe dividend stocks on the back of robust earnings-per-share growth, a high free cash flow-to-dividend ratio of Dividend score starts at 5, and 1 point is added for every year dividends are increased, meaning HPQ raised its dividends every year in the last five years.
UPS's Altman Z-score is 4. The company made it clear that it takes dividend payouts seriously. In the second quarter, UPS reported that revenue rose The company benefited from an increase in deliveries as people moved more of their shopping online during the pandemic, although there is a concern that this trend will moderate as the economy continues to reopen. Zacks Equity Research has a Buy rating on the safe dividend stock. The firm noted that Evercore has an "impressive" history of reporting higher-than-expected earnings, particularly in the last four quarters.
Also, Evercore's efforts at increasing the number of advisory services clients as well as expanding its business geographically have led to "solid revenue growth. Zacks does caution against two potential headwinds: escalating expenses on rising employee compensation and benefits which could hurt its bottom line and a decrease in assets under management due to foreign exchange fluctuations that may hurt fee income.
Solidifying its spot among safe dividend stocks: EVR in April announced an The analyst reiterated his Buy rating on SWK after the company reported robust second-quarter earnings that beat Wall Street's expectations. He expects the stock to snap back to historical norms. In a recent report, she notes that management has been telegraphing its plans to acquire the rest of MTD for some time, and "it is good to see the associated EPS accretion locked and loaded for estimates.
There's a lot to like about one of Wall Street's safest dividend stocks. The company's EPS growth clocks in at No wonder it is one of the largest chocolate manufacturers in North America.
The company is headquartered in Hershey, Pennsyvlania, where attractions evoke the essence of Willy Wonka: Street lamp posts are shaped in a Hershey's kiss; there's a museum and kid's destination called Hershey's Chocolate World; The Hotel Hershey's spa offers whipped cocoa baths and chocolate fondue body wraps; a theme park called Hershey Park offers thrill rides, among others.
Dividend investors, however, should favor Hershey for equally delicious reasons. Plus, when it comes to safe dividend stocks, this one hiked its quarterly payout by It didn't hurt that the company's second-quarter earnings and revenue exceeded the consensus expectations of analysts. Sales lifted as people consumed more candy at home, while revenues from its away-from-home segment and international markets improved as well, according to Zacks Equity Research.
Hershey's recent acquisition of Lily's Sweets, which specializes in better-for-you confections, fits in with the company's strategy of expanding its business in this category.
The pandemic is heightening the allure of making homes more functional and comfortable as folks work from home, and it should continue to give a lift to the home improvement industry. Morningstar analyst Jaime Katz says that when CEO Marvin Ellison took over in , Lowe's embarked on an overhaul of its top management, merchandising and boardroom ranks.
Ellison was the former CEO of J. Penney and also a long-time executive at Home Depot HD. The restructuring included shedding the company's Orchard Supply brand and Mexican assets, which means that increased capital expenditures will focus on areas that should lead to more efficient use of working capital. Katz notes that Lowe's investments in its information technology platform and distribution network further differentiates it from the rest of its retail peers and becomes another competitive edge.
The company's size also gives it "significant" bargaining leverage with vendors for products, ads, rent and others, she adds. The firm believes Target can continue to "execute on various initiatives intended to deliver stronger growth. Notably, Cowen analyst Oliver Chen says that the reopening of the economy means Fall represents "one of the biggest back-to-school and back-to-work seasons we'll ever see in our lifetimes.
As of p. Tesla Inc. Let's go shopping. Rivian's debut in the public markets has investors buying up shares of other EV sector start-ups. Shares of several related stocks are ripping higher today, suggesting that investors are feeling especially bullish on the prospects of the EV industry. AMD stock closed the day at an all-time high as investors cheered the news, which isn't surprising as the new business could significantly boost the chipmaker's growth in the long run.
Let's see why the adoption of AMD's server chips by Meta is going to be a big deal. He exercised 2. Following the release, an investor conference call was held. Highlights for the year. The company plunges sharply into the red on the bottom line in its Q3, and misses analyst estimates. EST Thursday. The worse news is that it seems 3D Systems has only itself to blame for the drop.
The recent spin-off of its managed infrastructure business into a company called Kyndryl NYSE: KD removes a noncore business from its balance sheet. Also, management promised that the two companies would maintain the current combined dividend.
Nearly a week since it reported estimate-crushing earnings for the fiscal third quarter of , shares of rare earth metals miner MP Materials NYSE: MP are marching higher on Thursday, rising 9.
MP Materials may not be the lowest-cost miner of rare earth metals, admitted Jefferies this morning in a note covered by StreetInsider.
Hut 8 Mining Corp. Nasdaq: HUT TSX: HUT "Hut 8" or the "Company" , one of North America's largest, innovation-focused digital assets mining pioneers, supporting open and decentralized systems since , is pleased to announce its financial results for the quarter ending September 30, "Q". Bloomberg -- Elizabeth Holmes grew so irritated with a probing Theranos Inc.
Alan Eisenman, a former money manager and financial planner from Houston, told jurors at Hol. Prior to the merger, Linde, now headquartered in Dublin, raised its dividend every year since With ample free cash flow after debt-service payments, Linde should have plenty of firepower to keep its dividend-growth streak alive. Smith AOS , a manufacturer of commercial and residential water heaters, is a relatively recent addition to the Dividend Aristocrats, entering the club in In October , it announced an 7.
That marked a 29th consecutive year of dividend hikes for the industrial firm. With ample free cash flow and a below-average payout ratio, investors can count on AOS to keep the dividend increases coming. Ecolab ECL provides water treatment and other industrial-scale maintenance services for several industries, including food, healthcare, and oil and gas.
Practically speaking, its products help optimize everything from offshore oil production to electronics polishing to commercial laundries. Ecolab's fortunes can wane as industrial needs fluctuate, though; for instance, when energy companies pare spending, ECL will feel the burn.
Over the long haul, however, this Dividend Aristocrat's shares have been a proven winner. The stock has delivered market-beating total returns for the past five-, and year periods. That's thanks in no small part to 29 consecutive years of dividend increases. ECL's most recent hike came in December , with a 2. Roper Technologies ROP — an industrial company whose businesses include medical and scientific imaging, RF technology and software, and energy systems and controls, among others — has been churning out income for almost three decades.
The most recent hike was declared in November , when the quarterly payout was lifted A combination of acquisitions, organic growth and stronger margins have helped Roper juice its dividend without stretching its profits. And while the yield might not look like much, patient investors have come to appreciate what ROP's steady dividend increases have done for their returns.
Defense contractor General Dynamics GD is one of the newer members of the Dividend Aristocrats, having been added to the elite list of best dividend stocks for growth in Generous military spending has helped fuel this dividend stock's steady stream of cash returned to shareholders.
Army contract for latest configuration of the Abrams Main Battle Tank. General Dynamics has upped its distribution for three decades now. The last increase was announced in March , when GD lifted the quarterly payout by 8.
Chevron CVX is an integrated oil giant that also has operations in natural gas and geothermal energy. It also happens to be the lone energy-sector name among the 30 stocks in the Dow Jones Industrial Average. Perhaps most important for income investors, CVX has more than three decades of uninterrupted dividend growth under its belt, and management has said it will protect the payout at all costs.
The Dallas-headquartered firm serves more than 3 million distribution customers in more than 1, communities across eight states, with a large presence in Texas and Louisiana. Analysts, who are mostly bullish on the name, point to ATO's strong fundamentals and increasing U. A robust balance sheet and potential for above-average earnings growth also recommend the stock.
Atmos clinched its 35th straight year of dividend growth in November , when it announced an 8. A steady stream of acquisitions helped wholesale drug and medical device distributor Cardinal Health CAH become the giant that it is today.
Like the rest of the medical device industry, CAH faced challenges during the pandemic as patients put off elective surgeries.
But the company still managed to generate ample free cash flow and the dividend increases such cash flow supports. Indeed, Cardinal Health has upped the ante on its annual payout for 35 years and counting. Asset managers such as T. Strong performance from actively managed funds and the firm's focus on the growing retirement market are just two factors boosting AUM, analysts note.
Given its track record as one of the best dividend stocks, investors can expect a 36th consecutive dividend hike in McCormick MKC — the maker of herbs, spices and other flavorings — has been bulking up with acquisitions over the years to drive sales growth, and the deals have been paying off.
The strategy should to provide support for McCormick's dividend, which has been paid for 97 consecutive years and raised annually for Telecommunications stocks are synonymous with dividends.
Customers pay for service every month, which ensures a steady stream of cash for these dividend stocks. That's in large part because of the cash flows generated by the telecom business, which enjoys what some call an effective duopoly with rival Verizon VZ.
Brown-Forman BF. B is one of the largest producers and distributors of alcohol in the world. Jack Daniel's Tennessee whiskey and Finlandia vodka are just two of its best-known brands, with the former helping drive long-term growth. Unlike many of the best dividend stocks on this list, you won't have a say in corporate matters with the publicly traded BF.
B shares. They hold no voting power. And most of the voting-class A shares are held by the Brown family. Still, you can enjoy in the company's gains and dividends. That payout has been on the rise for 37 consecutive years and has been delivered without interruption for Cintas CTAS is perhaps best-known for providing corporate uniforms, but the company also offers maintenance supplies, tile and carpet cleaning services and even compliance training.
As such, it's seen by some investors as a bet on jobs growth, and tends to move ahead of any pick-up in hiring during and economic recovery. Indeed, CTAS has worked pretty well as a proxy for employment in the past. Regardless of how the labor market is doing, Cintas is a stalwart when it comes to being one of the best dividend stocks.
The company has raised its payout every year since going public in However, those have been annual distributions up until this year, when the company switched to quarterly payouts. Amcor AMCR is a pretty boring company. It designs, manufactures and sells various packaging products for every industry you can think of, including food, beverage, pharmaceutical, medical, home and personal care.
But sometimes boring can be beautiful, and that's the case with Amcor when it comes to reliable income. It was named to the list of payout-hiking dividend stocks at the start of after its June acquisition of Bemis. The company last raised its dividend in November , by 2.
The analyst community expects the company to deliver average annual earnings per share growth of 5. Under pressure from investors, it started to shed some weight, including spinning off its Electronic Materials division and selling its Performance Materials business. Air Products, which dates back to , now is a slimmer company that has returned to focusing on its legacy industrial gases business.
But it hasn't taken its eye off the dividend, which it has improved on an annual basis for 39 years in a row. Aflac AFL is a supplemental insurance company — popularized by the loud Aflac duck — with roots going back to that covers numerous workplace offerings, such as accident, short-term disability and life insurance.
Although the COVID pandemic slammed the insurance industry, AFL stock returned to pre-crash levels by early , helped by the market's confidence in its dividend.
And with a conservative payout ratio and almost four straight decades of dividend growth, that confidence is indeed well placed. Aflac last raised its payout in November , upping the quarterly distribution by Exxon Mobil XOM remains one of the world's largest energy companies and is the biggest oil company by market value in the U. This dividend stalwart and its various predecessors have strung together uninterrupted payouts since To its credit, XOM was one of the few energy companies that didn't cut or suspend its payout amid the pandemic-caused crash in oil prices.
However, membership in the Dividend Aristocrats is based on consecutive increases to the annual payout; a 1. The name Franklin Resources BEN might not be well-known among investors; however, along with its subsidiaries, it's called the more familiar Franklin Templeton investments. Mutual fund providers have come under pressure because customers are eschewing traditional stock pickers in favor of indexed investments.
However, Franklin has fought back in recent years by launching its first suite of passive exchange-traded funds. Meanwhile, the asset manager remains attractive as an income provider for investors looking for the best dividend stocks. Thanks to its acquisition of Valspar, Sherwin-Williams SHW is one of the largest paints, coatings and home-improvement companies in the world. Income investors certainly don't need to worry about Sherwin-Williams' steady and rising dividend stream.
SHW has hiked its distribution every year since The most recent hike came in February with a Additionally, the board added 15 million shares to the firm's stock repurchase authorization. Medtronic MDT , one of the world's largest makers of medical devices, is an income machine. Most recently, in May , MDT lifted its quarterly payout by 8. MDT is able to steer generous sums of cash back to shareholders thanks to the ubiquity of its products. It holds more than 47, patents on products ranging from insulin pumps for diabetics to stents used by cardiac surgeons.
Look around a hospital or doctor's office — in the U. Clorox CLX , whose brands include its namesake bleaches, Glad trash bags and Hidden Valley salad dressing, was a big early beneficiary of the pandemic as demand surged for its ubiquitous cleaning materials. That surge in demand has since passed, but the dependable and defensive nature of Clorox's business has allowed the company to increase its payout every year since CLX boasts a reasonale payout ratio and ample free cash flow, which should ensure a 45th consecutive increase to the dividend in The world's largest hamburger chain also happens to be a dividend stalwart.
Changing consumer tastes will always be a risk, but McDonald's MCD dividend dates back to and has gone up every year since. That's the power of being a consumer giant that has been able to adjust itself to changing consumer tastes without losing its core.
That marked its 45h consecutive annual increase. And over the past 20 years? In early January it closed on its acquisition of Rocean, a maker of countertop filtration systems for the home. Terms were undisclosed. A modest payout ratio and conistently ample free cash flow helps ensure that Pentair will continue to be one of the best dividend stocks.
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