Stocks that pay dividends are naturally attractive and are prevalent in almost any market climate. However, considering today’s market, investors are looking at different techniques to help deal with market unpredictability. As a result of their long history of consistent dividend payments to shareholders, dividend stocks like AbbVie Inc. (ABBV), Exxon Mobil Corp (XOM), and Johnson & Johnson (JNJ) are gaining popularity among investors. For today’s list, though, I’ll dig a little deeper to look at some that are well-established and reputable but might not be on everyone’s radar.
Investors mainly choose dividend stocks because they provide a clear window into the health of the firm’s finances. Those that pay dividends often display strength, confidence, and shareholder loyalty. According to statistics, between 1957 and 2020, dividend growth increased at an average yearly rate of 5.7% compared to inflation’s growth rate of 3.63%. In addition, just six of the previous 64 years bore witness to a drop in dividend amounts, although 18 (3 times as many) of those years saw a decline in stock prices. Dividend payouts totaled $144.4 billion for the second quarter of 2022, a record high.
With that said, join me while I break down three dividend-paying stocks with solid fundamentals and track records. Top analysts agree that these tickers make for timely portfolio picks:
Northern Trust Corp (NTRS)
Northern Trust Corp (NTRS) is a financial holding firm that provides banking solutions. NTRS operates in servicing, brokerage, banking, and associated services. NTRS’s Corporate & Institutional Services Segment covers corporate and public retirement funds, foundations, fund managers, insurance companies, endowments, and sovereign wealth funds. Trust, investment management, custody, charitable services, financial counseling, guardianship and estate administration, family financial education, family business consulting, brokerage services, and private and business banking are all part of NTRS’s Wealth Management Segment. NTRS was created in 1971 and is based in Chicago, Illinois.
NTRS has a solid reputation on Wall Street among its industry peers. It doesn’t report again for a while, and in the meantime, it shows a forecasted $1.8 billion in sales for the current quarter, with an EPS of $1.86 per share. NTRS’s earnings history is mixed, but that’s not rare considering the seesaw action on display during certain periods after the pandemic. NTRS shows decent year-over-year growth: Revenue – 9.76%; Net Income – 7.63%; EPS – 8.14%; Operating Income – 11.12%. NTRS presently has a dividend yield of 3.21%, with a quarterly shareholder payout of 75 cents per share. NTRS has a median price target of 115.00, with a high estimate of 128.00 and a low of 99.00 among the analysts providing annual projections. The median forecast is a 23.15% gain over the last price, and NTRS’s stock receives a widely agreed-upon buy rating that has held steady all year.
Eastman Chemical Co (EMN)
Eastman Chemical Co (EMN) is a provider of specialized chemicals and a top player in its somewhat niche industry. Energy, transportation, construction, animal nutrition, and other various markets are represented. EMN’s Advanced Materials business manufactures and sells polymers, films, plastics, consumer goods, durable goods, and health and wellness products. In EMN’s Fiber segment, cellulose acetate tow is available for filtering media, prominent in cigarette filters. George Eastman created EMN in 1920, located in Kingsport, Tennessee.
EMN, like the others on this list, is no stranger to facing adversity in the marketplace. With world events and significant changes impacting the economy, it’s refreshing to know there is an option like EMN right now. It recently exceeded Wall Street’s EPS and revenue projections by 4.95% and 8.69%, respectively. EMN shows $2.60 per share with sales of $2.7 billion. EMN is another one that boasts impressive year-over-year growth numbers: Revenue – 4.94%; Net Income – 275.34%; EPS – 289.72%; Net Profit Margin – 267.27%. EMN presently has a dividend yield of 3.40%, with a quarterly shareholder payout of 76 cents per share. EMN has a median price target of 110.00, with a high of 165.00 and a low of 97.00 among the analysts providing yearly price projections. The median estimate is a 22.92% increase over current pricing, and EMN’s buy rating comes with confidence.
Citizens Financial Group Inc (CFG)
Citizens Financial Group, Inc (CFG) is a company that provides commercial banking services. CFG prides itself in working successfully in both consumer banking and commercial banking. Deposit products, mortgage financing, vehicle loans, student loans, credit cards, wealth management services, business loans, and investment guidance are all part of CFG’s Consumer Banking category. Trade financing, lending and leasing, deposit and treasury management, corporate finance and debt, foreign currency and interest rate risk management, and equity capital markets are all services provided by CFG’s Commercial Banking section. CFG was formed in 1828 and is based in Providence, Rhode Island.
CFG is a particular type of equity that I haven’t been encountering as much lately but are favorites of mine, and that would be any publicly-traded business reporting four or more quarters exceeding the NYSE’s and NASDAQ’s best economists’ forecasts. CFG, for the last four consecutive quarters, has beaten EPS predictions by 11.91%, 17.10%, 11.84%, and 5.71%, respectively – and revenue was won each quarter as well. Analysts forecast quarterly EPS growth of 82.50% and yearly sales growth of 19.86%. CFG, at this time, has a dividend yield of 4.64%, providing a quarterly payout of 42 cents per share. CFG has a consensus price target of 45.00, with a high of 56.00 and a low of 33.00 among the analysts providing 12-month price estimates. The median forecast is a 24.34% gain over its last price, and there are more than enough good reasons to warrant CFG’s buy rating.
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