The post Great Recession bull market in stocks is slowly falling apart.
Investors watched the Dow Jones Industrial Average crash more than 1,000 points on Thursday, just days after a mind-blowing 1,175 drubbing.
TheStreet's top minds have scoured their beats to find companies with the strongest dividend growth prospects. It's the quarterly checks that these companies churn out to investors that are likely to keep their stocks afloat during the near-term market turbulence.
Action Alerts Plus holding Microsoft's (MSFT) - Get Report current dividend yield stands at about 2%, which isn't huge, but solid for a company that's managed to return to high growth following a period of decline says TheStreet's tech editor Nelson Wang. Moreover, the new tax bill will allow Microsoft to repatriate billions of dollars held overseas at an attractive tax rate, perhaps leading to a special one-time dividend. The combination of Microsoft's stock appreciation (shares rose 40% in 2017) and history of increasing dividends make it a very attractive dividend play.
It's hard not to like home improvement king Home Depot (HD) - Get Report . First-time home buyers are back, and that includes millennials, all of whom tend to buy fixer-uppers. Then there are the dwellers impacted by the southern hurricanes and California wildfires.
Pair those needs with a home improvement company of fine-tuned customer service, a seamless bricks-and-mortar and e-commerce operation and same-day delivery to building sites, you've got a solid pick in Home Depot, says TheStreet's retail editor Michelle Lodge. This month, Home Depot announced it will begin selling Telsa Inc. (TSLA) - Get Report residential rooftop solar panels and its rechargeable battery system Powerwall at Tesla kiosks within its stores. Big wins.
Home Depot, which offers a 2% dividend yield, reports fourth-quarter earnings on Feb. 20. If they're anything like the third-quarter numbers, investors are in for a boost. Home Depot showed a 7.9% increase in comparable-store sales in the third quarter, which exceeded the Wall Street estimate of 5.8%. Home Depot also beat on earnings, reporting $1.84 a share, 2 cents ahead of forecasts. The company's total revenue was $25.03 billion, up 8% from the same period last year. Even better, its third quarter earnings rose 15% from a year ago and comparable sales in the U.S. jumped at a 7.7% clip.
"Recycling and trash don't go away, it is a business that has such a great presence," Fish said.
The Action Alerts Plus holding announced in December that it would boost its quarterly dividend by 9.4% to $0.465 per share from $0.425 per share. On an annual basis, the dividend increases to $1.86 per share from $1.70 per share. The December dividend hike represented the 15th consecutive year that the company increased its quarterly dividend.
"I am very happy with the Waste Management team," TheStreet's founder Jim Cramer said in December following the dividend announcement. "This is a reminder that when Waste Management had its change of CEO it didn't skip a beat and the company's doing really, really well."
Cramer also believes that Waste Management will "see a material benefit to its bottom line" from the overhaul of the U.S. tax system, which reduced the corporate tax rate to 21%, as the company has been paying an approximate effective rate of 35%.
Even amid this week's sell-off, "the company's business is relatively immune to the concerns that have been raised in this market," Cramer wrote in a Feb. 9 note to Action Alerts Plus subscribers.
This solid pick comes via TheStreet's industrial reporter Anders Keitz.
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