economy
Turn to dividend growth stocks to cushion your portfolio in a selloff, Trivariate Research says
The firm called out these stocks as solid dividend growers at a time when the search for defensive plays has changed.
TL;DR
- Trivariate Research suggests dividend growth stocks offer downside protection in turbulent markets.
- Traditional defensive sectors (pharmaceuticals, telecoms, consumer staples, utilities) now represent over 10% of the S&P 500 market cap, down from nearly 30% 25 years ago.
- The firm identified stocks with consistent dividend growth for at least five years, projected sales growth of at least 7%, and anticipated earnings growth of 10%.
- Pest control company Rollins and LNG producer Cheniere Energy are highlighted examples.
- Rollins recently increased its dividend by over 10% and has positive analyst ratings.
- Cheniere Energy also increased its quarterly dividend by over 10% and raised its full-year guidance, benefiting from reduced Middle Eastern LNG production.
- Other mentioned stocks include Microsoft, Abbott Laboratories, AbbVie, and Stryker.