For Immediate Releases
Chicago, IL – December 31, 2024 – Zacks.com announces the list of stocks and featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Atmos Energy Corporation (ATO – Free Report) , Brown & Brown, Inc. (BRO – Free Report) and Cintas Corporation (CTAS – Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
3 Dividend Aristocrat Must-Haves for Your Portfolio in 2025
2024 has stood out for Wall Street, delivering remarkable gains for investors. The S&P 500 has grown an impressive 26.2%, whereas the Dow Jones Industrial Average has climbed 14.1%, underscoring a robust market rally.
Yet, recent market turbulence has reminded investors of the inherent volatility in financial markets. Over the past month, the S&P 500 has edged down 0.7%, and the Dow Jones Industrial Average has seen a steeper decline of 4.1%. As we turn the corner into 2025, this heightened uncertainty underscores the importance of resilience in the portfolio strategy.
Amid such volatility, dividend aristocrats stand out as prudent choices for investors. For income-focused investors, dividend aristocrats are undeniable cornerstones for building a reliable portfolio. These elite companies have demonstrated unmatched financial discipline by raising dividends for at least 25 consecutive years, underscoring their resilience and commitment to shareholders. The dividends of these stocks are not only consistent but highly secure, making them dependable sources of income even in uncertain economic climates.
In 2025, with the possibility of fluctuating interest rates and economic uncertainties, dividend aristocrats remain a must-have for investors prioritizing stability. Those seeking a steady income stream can consider stocks like Atmos Energy Corporation, Brown & Brown, Inc. and Cintas Corporation for the portfolio.
3 Dividend Aristocrats to Buy
Atmos Energy: The company is engaged in regulated natural gas distribution and storage business. It has raised its annual dividend for 40 consecutive years and paid out quarterly dividends for 164 years. Currently, its quarterly dividend is 87 cents per share.
ATO continues to benefit from rising demand for natural gas, courtesy of an expanding customer base. Atmos Energy’s long-term investment plan should further increase the reliability of its natural gas pipelines. The company gains from industrial customer additions and constructive rate outcomes.
Atmos Energy has a dividend yield of 2.5%. ATO’s payout ratio is 47, with a five-year dividend growth rate of 8.4%. The Zacks Consensus Estimate for its fiscal 2025 earnings has increased 0.3% over the past 60 days. The company’s expected year-over-year earnings growth rate for fiscal 2025 is pegged at 5%. Shares of the Zacks Rank #2 (Buy) company have gained 20.2% in 2024. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Brown & Brown: The company markets and sells insurance products and services primarily in the United States, as well as London, Bermuda and the Cayman Islands. The strong capital and liquidity position enables BRO to distribute wealth to shareholders via dividend increases and share buybacks. The company increased dividends in the last 31 years.
Brown & Brown’s compelling portfolio, along with an impressive growth trajectory, driven by organic and inorganic initiatives across all its segments, bodes well. Buyouts and collaborations have enhanced its existing capabilities and extended its geographic foothold.
BRO has a dividend yield of 0.6%. The company’s payout ratio is 15, with a five-year dividend growth rate of 10.8%. The Zacks Consensus Estimate for its 2025 earnings has increased 2.2% over the past 60 days. Brown & Brown’s expected year-over-year earnings growth for 2025 is 9.6%. Shares of the Zacks Rank #2 company have gained 44.7% in 2024.
Cintas: The company designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products, and first aid and safety products for diversified businesses. Cintas has consistently raised its dividends for 40 straight years.
CTAS is well-positioned to benefit from the solid momentum across its segments. The penetration of additional products and services into existing customers is aiding the Uniform Rental and Facility Services segment. Improved demand for AED Rentals and WaterBreak products is driving the First Aid and Safety Services segment.
Cintas has a dividend yield of 0.9%. CTAS’s payout ratio is 38, with a five-year dividend growth rate of 21.2%. The Zacks Consensus Estimate for its fiscal 2025 earnings has increased 1.9% over the past 30 days. The company’s expected year-over-year earnings growth for fiscal 2025 is 13.7%. Shares of the Zacks Rank #2 company have gained 21.7% in 2024.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular 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. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. 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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