Zacks.com featured highlights include Leidos, Cabot, Williams-Sonoma, Booz Allen Hamilton and Brady

Zacks Equity Research
·7-min read

For Immediate Release

Chicago, IL – July 2, 2024 – Stocks in this week’s article are Leidos Holdings Inc. LDOS, Cabot Corp. CBT, Williams-Sonoma Inc. WSM, Booz Allen Hamilton Holding Corp. BAH and Brady Corp. BRC.

5 Dividend Stocks to Pick for Solid Growth in the 2nd Half of 2024

Wall Street wrapped up a blistering first half driven by a boom in artificial intelligence and an improving economy. The solid trend is likely to continue in the second half but the US presidential election in November and uncertainty about the path of interest rate cuts weigh on the prospects. In such a scenario, dividend investing seems the best choice as it offers consistent and safe income.

Though the strategy does not offer dramatic price appreciation, it is a major source of consistent income for investors in any market. In particular, focusing on the growth level in this strategy leads to higher returns. Stocks with a strong history of year-over-year dividend growth form a healthy portfolio, with a greater scope of capital appreciation, as opposed to simple dividend-paying stocks or those with high yields.

We have selected five dividend growth stocks — Leidos Holdings Inc., Cabot Corp., Williams-Sonoma Inc., Booz Allen Hamilton Holding Corp. and Brady Corp.— that could be compelling picks heading into the second half.

Dividend Growth: Why is it Considered a Winning Strategy?

Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market and 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 a 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.

Here are five of the seven stocks that fit the bill:

Delaware-based Leidos Holdings is a global science and technology leader that serves the defense, intelligence, civil and health markets. It has an estimated earnings growth rate of 19.9% for this year and delivered an average earnings surprise of 23.43% in the past four quarters.

Leidos Holdings sports a Zacks Rank #1 and has a Growth Score of B. You can see the complete list of today's Zacks #1 Rank stocks here.

Morocco-based Cabot is a leading global specialty chemicals and performance materials company. The company offers a broad range of products and solutions, catering to major industries such as transportation, infrastructure, environment and consumer. Cabot has an expected earnings growth rate of 26.02% for the fiscal year (ending September 2024) and delivered an average earnings surprise of 3.80% in the past four quarters.

Cabot has a Zacks Rank #2 and a Growth Score of A.

California-based Williams-Sonoma is a multi-channel specialty retailer of premium quality home products. It saw a solid earnings estimate revision of 16 cents over the past month for the fiscal year (ending January 2025). The company has an estimated earnings growth rate of 8.28%.

Williams-Sonoma sports a Zacks Rank #1 and has a Growth Score of A at present.

Virginia-based Booz Allen is a provider of management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber expertise to the United States and international governments, corporations, plus not-for-profit organizations. BAH saw a positive earnings estimate revision of 6 cents for the fiscal year (ending March 2025) and has an estimated earnings growth rate of 10%.

Currently, Booz Allen has a Zacks Rank #2 and a Growth Score of B.

Wisconsin-based Brady is a world leader in complete identification solutions that help companies improve productivity, performance, safety and security. Brady's products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. The company has an expected earnings growth rate of 13.5% for the fiscal year (ending July 2024) and delivered an average earnings surprise of 6.65% in the past four quarters.

Brady has a Zacks Rank #2 and a Growth Score of B.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2295454/5-dividend-stocks-to-pick-for-solid-growth-in-the-second-half

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.

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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. See these high-potential stocks free >>.

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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 https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

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Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report

Cabot Corporation (CBT) : Free Stock Analysis Report

Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report

Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report

Brady Corporation (BRC) : Free Stock Analysis Report

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