5 Top Dividend Aristocrats to Fend Off Market Volatility
Major U.S. bourses, yet again, suffered a sell-off on Sep 21 with the broader S&P 500 ending in the red for the fourth straight trading session, the longest losing streak since February. In fact, the S&P 500 somehow managed to stay out of the correction territory yesterday.
The 30-stock index, Dow, also dropped more than 500 points, and saw its worst day since Sep 8. The tech-heavy Nasdaq too closed in the negative territory.
Monday’s drop, in effect, added to September blues. So far this month, the S&P 500, the Dow and the Nasdaq have declined around 6%, 4.5% and 8.5%, respectively.
It’s worth pointing out that the equity market continues to face serious bouts of volatility this month, with the Cboe Volatility Index (VIX), Wall Street’s so-called fear gauge, soaring to 31 before closing at 27.78 on Sep 21. Notably, any reading above 20 hints at a bearish outlook for the stock market. What’s more, the repeated declines in recent trading sessions raised concerns among traders about a repeat of the market riot seen in March.
So, what’s dragging the stock market down? Fresh rise in new coronavirus cases in Europe and worries that additional U.S. stimulus measures may not be implemented have unnerved investors. Recent rise in coronavirus infection in the U.K. is compelling the British government to mull over another national lockdown. U.K.’s government has warned that coronavirus cases might easily touch the grim mark of 50,000 a day in the near term.
Rising coronavirus cases in the U.K. is never good news as it may hamper the country’s economic growth, which in turn will have a rippling effect throughout the globe.
On the domestic front, things don’t look promising either. After the death of Supreme Court Justice Ruth Bader Ginsburg, both Democrats and Republicans are likely to get involved in an acrimonious nomination procedure as to who takes Ginsburg’s seat. This may lead to further delay of the new coronavirus stimulus bill, which has already been in impasse since July. No doubt, stimulus measures are the need of the hour to pep up the economy amid the coronavirus pandemic, and any delay doesn’t bode well for investors’ sentiment.
Big banks across the globe faced a lot of pressure yesterday after a report claimed that many of them are doing business with customers involved in illegitimate activity. And let’s admit, U.S. presidential election is knocking at the door, which certainly will lead to more gyration in the upcoming weeks. In fact, chances of a delayed vote count due to mail-in-ballots have rattled investors.
In the meantime, tech behemoths that helped the broader market make a solid comeback this year are now quite expensive. To top it, cyclically-sensitive stocks like airlines and materials have taken a beating recently.
5 Dividend Aristocrats to Buy Now
With things not looking up for the stock market this September, it’s wise to bet on dividend aristocrats for their risk-adjusted returns. These stocks have a solid financial structure and healthy underlying fundamentals and are unperturbed by market volatility. This category of stocks also outperforms other dividend payers on better quality business.
Hence, we have selected five dividend aristocrats to boost your returns. These stocks also possess a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Cintas Corporation CTAS provides specialized services to businesses of all types throughout North America. The company currently has a Zacks Rank #2. It has boosted dividend payments for 36 successive years, which includes a 24.4% raise for 2019. Currently, it has a dividend yield of 0.8%. The company’s expected earnings growth rate for the next year is 13.3%.
Walmart Inc. WMT has now evolved from just being a traditional brick-and-mortar retailer into an omnichannel player. The company currently has a Zacks Rank #2. It has raised dividend payments for 46 years in a row. Currently, it has a dividend yield of 1.6%. The company’s expected earnings growth rate for the current and next year is 7.1% and 6.6%, respectively.
T. Rowe Price Group, Inc. TROW is a global investment management organization that provides a broad array of mutual funds and sub-advisory services. The company currently has a Zacks Rank #2. It has raised its dividend payments for 33 consecutive years. Currently, it has a dividend yield of 2.8%. The company’s expected earnings growth rate for the current and next year is 7.6% and 7%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Target Corporation TGT is a general merchandise retailer in the United States. The company currently has a Zacks Rank #1. It has boosted dividend payments for 48 successive years. Currently, it has a dividend yield of 1.8%. The company’s expected earnings growth rate for the current and next year is 11.9% and 7.6%, respectively.
Roper Technologies, Inc. ROP designs, manufactures, and distributes engineered products and solutions as well as software. The company currently has a Zacks Rank #2. It has raised dividend payments for 27 years in a row. Currently, it has a dividend yield of 0.5%. The company’s expected earnings growth rate for the next year is 15.4%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
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Target Corporation (TGT) : Free Stock Analysis Report
Cintas Corporation (CTAS) : Free Stock Analysis Report
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T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report
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