Diamond Member Pelican Press 0 Posted March 18, 2024 Diamond Member Share Posted March 18, 2024 Jefferies likes these dividend-growing stocks for 2024 Investors searching for income could be well-rewarded by turning to dividend-growing stocks, according to Jefferies. Macro indicators such as the expectation of falling inflation, slowing economic growth and easing commodity prices suggest a move toward dividend growers, according to Desh Peramunetilleke, the firm’s global head of quantitative strategy. He also likes high-quality-yield stocks in this environment. “Consensus expects USA dividend growth to accelerate from 3.9% for 2023 to 6.2% for 2024, along with positive revisions,” Peramunetilleke wrote in a note Wednesday. “Most sectors except energy and autos are expected to grow dividends, led by media and semis.” There has also been a drop in stock buybacks, which has boosted the free-cash-flow cover for companies, he noted. “With earnings growth returns, [the] US can grow dividends again, without impacting the [free cash flow] cover,” Peramunetilleke said. Jefferies defines dividend growers as companies with a dividend-per-share compound annual growth rate of more than 5% from 2019 to 2023 and forecast for 2024 and 2025. In addition, they have a strong track record, with dividend-per-share growth greater than 5% in at least four out of the five years. Dividends were also never cut more than 5% in any of the past years. Lastly, they have positive free-cash-flow conversion, based on the last five years’ average, and a dividend sustainability star rating of three or more. The firm filtered for companies with a market cap of $5 billion or more and a dividend yield above 1.5%. Here are 10 names that made the list. JPMorgan Chase , which has a 2.3% 12-month forward dividend yield, is the largest name on the list. In October, the bank raised its dividend to $1.05 per share from $1.00. That said, the bank in January noted its fourth-quarter profit fell after paying a $2.9 billion fee tied to the regional banking crisis. Shares are up nearly 13% year to date. AbbVie also made the list with a 12-month forward dividend of 3.5%. Shares are up more than 15% this year, after losing 6.6% in 2023. The biotech company has been facing declining sales for its autoimmune ***** Humina, which lost exclusivity last year. However, it has two newer immunology drugs, Skyrizi and Rinvoq, which it hopes will help offset those losses. AbbVie also recently closed its $10 billion deal to buy ******* drugmaker ImmunoGen. In December, it announced it would buy neuroscience drugmaker Cerevel Therapeutics for about $8.7 billion. In addition, the company will be getting a new CEO. Longtime executive Robert Michael is set to become the company’s new chief executive effective July 1. McDonald’s , which has a 2.4% 12-month forward dividend, also made the cut. The fast-food giant reported a fourth-quarter earnings beat in February. However, its revenue missed expectations due to boycotts in the Middle East after its ******** licensee offered discounts for soldiers. The stock has lost 6% year to date. This is the hidden content, please Sign In or Sign Up Dividends,Stock markets,Investment strategy,JPMORGAN DRN,Abbvie Inc,McDonald's Corp,Cerevel Therapeutics Holdings Inc,business news #Jefferies #likes #dividendgrowing #stocks This is the hidden content, please Sign In or Sign Up Link to comment https://hopzone.eu/forums/topic/4548-jefferies-likes-these-dividend-growing-stocks-for-2024/ Share on other sites More sharing options...
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