For Immediate Release
Chicago, IL – February 19, 2025 – Stocks in this week’s article are Tapestry, Inc. TPR, RTX Corp. RTX, Cintas Corp. CTAS, Broadcom Inc. AVGO and Corning Inc. GLW.
5 Dividend Stocks Investors May Bank On for Growth
Dividend investing remains one of the hottest segments of the stock market. Though U.S. stocks have been hovering near record highs on Trump’s growth policies and ongoing AI adoption, geopolitics, fears of a trade war, inflationary pressure and uncertain Fed moves continue to weigh on investors’ sentiment.
In such a scenario, dividends are major sources of consistent income for investors though they do not offer dramatic price appreciation. Stocks backed by regular dividends can reduce the volatility of a portfolio and also tend to outperform in a choppy market. In particular, focusing on the growth level in this strategy leads to higher returns. Zeroing in on stocks with a history of dividend growth leads to a healthy portfolio with a greater scope of capital appreciation, as opposed to simple dividend-paying stocks or those with high yields.
We have selected five dividend growth stocks — Tapestry, Inc., RTX Corp., Cintas Corp., Broadcom Inc. and Corning Inc. — that could be solid choices.
Why Dividend Growth?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that dividend increase is likely in the future.
Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
Just these few criteria narrowed down the universe from over 7,700 stocks to just seven.
Here are five of the seven stocks that fit the bill:
New York-based Tapestry, which was formerly known as Coach, is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The stock saw a solid earnings estimate revision of 7 cents over the past seven days for the fiscal year (ending June 2025) and has an estimated earnings growth rate of 14.4%.
Tapestry has a Zacks Rank #2 and a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Massachusetts-based RTX is an aerospace and defense company, providing advanced systems and services for commercial, military and government customers worldwide. The stock saw a solid earnings estimate revision of 6 cents over the past 30 days for this year with an estimated earnings growth rate of 7%.
RTX has a Zacks Rank #2 and a Growth Score of B.
Ohio-based Cintas provides specialized services to businesses of all types throughout North America. It also operates in Europe, Asia and Latin America. The company designs, manufactures and implements corporate identity uniform programs. It also provides entrance mats, restroom supplies, promotional products and first aid and safety products for diversified businesses. Cintas has an estimated earnings growth rate of 13.7% for the fiscal year (ending May 2025) and delivered an average earnings surprise of 7.70% for the past four quarters.
Cintas has a Zacks Rank #2 and a Growth Score of B.
California-based Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices focused on complex digital and mixed-signal complementary metal oxide semiconductor-based devices and analog III-V based products. The stock saw a positive earnings estimate revision by a penny for the fiscal year (ending October 2025) over the past 30 days and has an expected earnings growth rate of 29.6%.
Broadcom has a Zacks Rank #2 and a Growth Score of B.
New York-based Corning started as a glass business that was reincorporated in 1936. The company has since developed its glass technologies to produce advanced glass substrates that are used in a large number of applications across multiple markets. The stock saw positive earnings estimate revision of a penny for this year over the past 30 days and has an expected earnings growth rate of 18.9%.
Corning has a Zacks Rank #2 and a Growth Score of B
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Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpCintas Corporation (CTAS) : Free Stock Analysis Report
Corning Incorporated (GLW) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Tapestry, Inc. (TPR) : Free Stock Analysis Report
RTX Corporation (RTX) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
