The Dawn of Dividend Stocks
As the market traverses the third quarter of 2024, a seismic shift is palpable. Tech stocks, once the darlings of Wall Street, have ceded the limelight to dividend stocks. This change in tide signals a broader rotation in investor sentiment, hinting at a timely chance to delve into dividend stocks that are still undervalued.
Northrop Grumman: Aerospace & Defense Dividends
If you’re on the prowl for a battle-tested dividend, Northrop Grumman (NYSE:NOC) fits the bill. Known for its cutting-edge aerospace and defense systems like the B-2 Spirit bomber, this stalwart boasts an unmatched track record of dividend growth spanning two decades. Northrop Grumman has consistently increased dividends for 20 years, with recent annual growth rates exceeding 11%. Despite a recent 7% dip in stock price, geopolitical tensions worldwide position Northrop Grumman as a beacon of stability in tumultuous times.
J.B. Hunt Transportation Services: Driving Dividend Growth
The wheels of dividend success keep turning at J.B. Hunt Transportation Services (NASDAQ:JBHT). Specializing in supply chain solutions, J.B. Hunt’s arsenal boasts an extensive fleet of over 118,000 company-owned pieces of equipment, enhancing operational prowess. With a dividend track record of 21 years and a 10-year Compound Annual Growth Rate (CAGR) of 10.8%, J.B. Hunt continues to impress. Despite a recent 14% slide in stock value, the company’s long-term growth trajectory positions it as a sturdy contender in the dividend stocks arena.
Hormel Foods: A Savory Stock Pick for Investors
The Story of Hormel Foods
Hormel Foods, known by the ticker symbol HRL, tantalizes investors with a delectable opportunity. Offering a diverse range of food products under its umbrella, Hormel has curated an impressive collection of brands including SPAM, Skippy, Hormel Black Label, and Applegate. These iconic names cater to a variety of tastes and dietary preferences, ensuring a broad consumer reach.
A Taste of Resilient Growth
With a robust distribution network and strong retail partnerships, Hormel has historically shown a knack for consistent revenue and earnings growth. Over the past decade, the company’s dividend per share has enjoyed a healthy Compound Annual Growth Rate (CAGR) of 12.5%, further underlining its appeal to income-oriented investors. Notably, Hormel proudly boasts an impressive streak of 58 years of consecutive dividend increases.
The Market’s Appetite
Despite a recent 18% decline in its stock price, Hormel’s dividend yield has risen to an enticing 3.3%. This attractive yield, complemented by the company’s ongoing commitment to dividend growth, positions Hormel favorably in the current investing landscape. With potential interest rate cuts on the horizon, the allure of dependable dividend-paying stocks like Hormel is set to increase. As investors seek alternatives in the absence of lucrative fixed-income yields, Hormel stands out as a savory option.
