Highlights of the Zacks Analyst blog: Conagra Brands & Entergy, DCP Midstream, Conagra Brands & Entergy, ONEOK, Phillips 66
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Chicago, IL – December 23, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Each day, the Zacks Equity Research analysts discuss news and events that impact stocks and financial markets. Recent stocks featured on the blog are: Conagra Brands CAG, DCP Midstream, LP DCP, Conagra Brands CAG, Entergy Corp. ETR, ONEOK, Inc. OKE, Phillips 66 PSX.
Here are highlights from Thursday’s Analyst Blog:
5 Growth Stocks that Pay Solid Dividends
Inflation rates and interest rate rises were the top two adversities in the United States in 2022. This led to volatile stock market performance. To curb inflation, the Federal Reserve raised the interest rate 50 basis points to 4.25%-4.5%. Investors are now looking for profitable and safe investment options that have growth potential.
Why Growth Stocks?
These stocks can be a great way to channel investments. Stocks with higher than average financial growth are more attractive because they attract the market’s attention and offer greater returns. These stocks are a good investment option that can yield solid returns in the short and long-term. Companies that have the potential to outperform the overall market growth in the long-term with higher profits or revenues are called growth stocks.
It’s easier to find top-quality growth stocks with the Zacks Growth Style Score (part the Zacks Style Scores) system. This score goes beyond traditional growth attributes and analyzes the company’s real potential for growth.
Why should you invest in dividend-paying stocks?
Investors are more interested in safe and profitable stocks than they are in growth investments. Regular quarterly dividends can provide this stability and strong balance sheet. Investors looking for regular income streams or wealth can also consider investing in dividend stocks. Dividend stock investments are ideal for those who want to reinvest dividend payments into capital accumulation. Dividend stocks are low-risk investments that are easy to keep and are generally safe.
Dividend stocks not only increase profits but also lower portfolio risk for investors. They also offer tax benefits and fundamental analysis. For long-term returns, dividend stocks that offer high yields, a strong payout ratio, and solid earnings prospects are great investments.
5 Solid Growth Investments that Pay Dividends
The Zacks Stock Screener has helped us narrow down five stocks with high growth potential. A. These stocks also have a greater dividend yield than 3.3%, a Growth Score A or B, as well as a Zacks Ranking #1 (Strong Buy), and #2 (Buy). See the full list. The complete Zacks #1 Stock Rank list is here.
DCP Midstream LP: A major company in the energy infrastructure sector, this CO-based company. DCP Midstream is a stable fee-based company that generates steady revenue. It banks on its pipeline assets and mainly focuses its efforts on strengthening its balance sheet, with the goal of lowering its debt load. The Zacks Rank #1 stock shares soared 35% in six months.
Zacks Consensus Estimates for DCP Midstream’s Earnings per Share for 2023 reflect a 10.7% increase year-over-year. It has a long-term estimated earnings growth rate at 2% and a Growth Score of A. The company pays a quarterly dividend of 43c ($1.72 annuallyized) per share with a 4.3% yield at current stock prices. DCP’s payout ratio of 32.4% has a five year annualized dividend growth rate at 11.2%. (Check out DCP’s dividend history here.
Conagra BrandsChicago-based Conagra, a leading North American branded food company, is reaping the benefits of its strong pricing strategies, premium edible products, and refined focus on innovation. Conagra is committed to innovation which has been key to its success. The shares of this Zacks Rank #2 company have risen 16.4% over the past six months.
The Zacks Consensus estimate for Conagra’s sales and earnings per shares for fiscal 2023 is 5.3% and 3.8% year-over-year, respectively. It has a long-term growth rate of 7%, and a Growth Score score of B. The company pays a quarterly dividend of 33c ($1.32 annuallyized) per share with a 3.4% yield at current stock prices. CAG has a payout ratio of 54.1% and a 5-year annualized dividend growth rate at 11.2%. Check CAG’s past dividend history here
Entergy Corp.: Based in Los Angeles, the company is principally involved in electric power production and retail power distribution. Entergy is not only a solid project pipeline but also continues to make steady progress towards adding renewable generation to their portfolio. This Zacks Rank #2 company has seen its shares rise 9.1% over the past six months.
Entergy’s earnings per share and sales for 2023, according to the Zacks Consensus Estimate, reflect a 1.5% and 6.6% increase in year-over-year respectively. The company has a long-term growth rate of 6.8%, and a Growth Score of B. The company pays a quarterly distribution of $1.07 per share ($4.28 annuallyized), with a 3.6% yield at current stock prices. ETR has a payout ratio of 61.2% and a 5-year annualized dividend growth rate at 2.9%. Check out ETR’s dividend history.
ONEOK, Inc.: This Oklahoma-based energy company is engaged in natural gas (NGL) and natural gas liquids business. The company has seen increased production volumes and fees-based commitments to higher production volumes. It has been strengthening its position in high-production regions through its expansion plans. Shares of this Zacks #1 stock have increased by 20.8% over the last six months.
Zacks Consensus Estimates for ONEOK’s Earnings per Share for 2023 reflect a 13.9% year-over-year growth. It has an 8.5% long-term growth rate and a B Growth Score. The company pays a quarterly dividend of $94 (or 3.76 annually) per share. This yield is 5.8% at the current stock price. OKE’s payout ratio stands at 103.9% with a 5.8% annualized dividend growth. Check OKE’s dividend history here.
Phillips 66: The Texas-based company’s operations include transportation, storage, and marketing. Phillips 66 ranks as the leader in chemicals, refining, and midstream in terms size, efficiency, strength. By streamlining its assets and investing in growth opportunities, the company has been expanding its capabilities in every business segment. Shares of this Zacks Rank #2 stock rose 14.2% over the last six months.
Zacks Consensus Estimates for Phillips 66’s 2023 sales reflect a 10.1% increase year-over-year. The company has a long-term expected earnings growth rate (17.6%) and a Growth Score of A. The company pays a quarterly distribution of $97 (or $3.88 annually) per share. This yield is 3.8% at the current stock price. PSX’s payout ratio stands at 21.9% with a 5.6% annualized dividend growth rate over five years. Check out PSX’s dividend history.
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Past performance does not guarantee future results. Risk of loss is inherent to any investment.. This information is provided solely for informational purposes. It does not constitute investment, legal accounting, tax advice or a recommendation to purchase, sell, or hold any security. This material is not intended to be a recommendation or advice as to whether an investment is suitable for any 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. The views and opinions expressed by Zacks Investment Research may not reflect the firm’s overall view. Zacks Investment Research is not involved in any investment banking, market-making or asset management activities. These returns were calculated from hypothetical portfolios that included stocks with Zacks Rank = 1, which were rebalanced every month with no transaction costs. These returns do not reflect actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Entergy Corporation (ETR) : Free Stock Analysis Report
ONEOK, Inc. (OKE) : Free Stock Analysis Report
Conagra Brands (CAG) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
DCP Midstream Partners, LP (DCP) : Free Stock Analysis Report