{"id":134641,"date":"2023-09-12T03:59:11","date_gmt":"2023-09-12T03:59:11","guid":{"rendered":"https:\/\/finbestnews.com\/?p=134641"},"modified":"2023-09-12T03:59:11","modified_gmt":"2023-09-12T03:59:11","slug":"5-dividend-paying-growth-stocks-for-an-uncertain-september","status":"publish","type":"post","link":"https:\/\/finbestnews.com\/markets\/5-dividend-paying-growth-stocks-for-an-uncertain-september\/","title":{"rendered":"5 Dividend-Paying Growth Stocks for an Uncertain September"},"content":{"rendered":"
U.S. stock markets are directionless at present as market participants remain clueless about a near-term recession and the Fed\u2019s decision regarding the future movement of interest rate. Year to date, the Dow \u2014 the biggest gainer of 2022 \u2014 is up 4.3%. The broad-market benchmark \u2014 S&P 500 Index \u2014 has advanced 16.1%. However, the tech-heavy Nasdaq Composite has rallied 31.5%, buoyed by a lower inflation rate and the Fed\u2019s decision to reduce the magnitude of interest rate hike.\u00a0\u00a0<\/span><\/p>\n However, last month, U.S. stock markets faced major setbacks for the first time in 2023. The Dow, the S&P 500 and the Nasdaq Composite slid 2.4%, 1.8% and 2.2%, respectively. Market participants remained concerned after Fed Chairman Jerome Powell\u2019s comment at the Jackson Hole Annual Monetary Policy Symposium that the central bank may pursue more hikes in interest rate depending on economic data.<\/p>\n At present, the interest rate is in the range of 5.25-5.5%, its highest in more than 22 years. Investors are worried about how markets will behave this month. September is historically the worst-performing month on Wall Street. In the absence of earnings results, the Fed\u2019s September FOMC meeting will be the key focal point this month.<\/p>\n In this regard, investors are hopeful that a series of recently released weak economic data may act as a barrier for the central bank to hike interest rates further. Nevertheless, a large section of economists and financial analysts expects the Fed to hike interest rate by 25 basis points in its November FOMC meeting.<\/p>\n At this stage, it will be prudent to invest in growth stocks with a favorable Zacks Rank that pay regular dividend to strengthen one\u2019s portfolio.<\/p>\n We have narrowed our search to five dividend -paying growth stocks that have solid upside left for the rest of 2023. These stocks have witnessed positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a Growth Score A or B.<\/p>\n Caterpillar Inc.<\/strong> CAT has seen year-over-year revenue and earnings growth for nine straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of supply-chain snarls and cost pressures. We expect the company\u2019s adjusted earnings per share for 2023 to grow 19.5% and revenues to rise 7.6%.<\/p>\n Caterpillar has an expected revenue and earnings growth rate of 11.9% and 43.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 30 days. CAT has a current dividend yield of 1.84%.<\/p>\n Erie Indemnity Co. <\/strong>ERIE operates as a managing attorney-in-fact for subscribers at the Erie Insurance Exchange in the United States. ERIE provides sales, underwriting, policy issuance, and renewal services for the policyholders on behalf of the Erie Insurance Exchange.<\/p>\n Erie Indemnity has an expected revenue and earnings growth rate of 12.5% and 32.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the last 30 days. ERIE has a current dividend yield of 1.72%.<\/p>\n LSI Industries Inc.<\/strong> LYTS is an Image solutions company. It combines integrated design, manufacturing, & technology to supply its own high-quality lighting fixtures and graphics elements for applications in the retail, specialty niche, and commercial markets. LYTS has two segments, Lighting and Display Solutions. LYTS operates in the United States, Canada, Mexico, Australia, and Latin America.<\/p>\n LSI Industries has an expected revenue and earnings growth rate of 4.2% and 27.3%, respectively, for the current year (ending June 2024). The Zacks Consensus Estimate for current-year earnings has improved 19.1% over the last 30 days. LYTS has a current dividend yield of 1.33%.<\/p>\n Guess? Inc. <\/strong>GES has benefited from strength in its businesses across Europe and Asia, along with its focus on six strategic initiatives. The core strategies include organization and culture, functional capacities, brand relevance with three main consumer groups (heritage, Millennials and Generation Z customers), customer focus, product brilliance, and an international footprint. GES is progressing with its customer-centric initiatives, including omnichannel capabilities and advanced data analytics.<\/p>\n Guess? has an expected revenue and earnings growth rate of 3.3% and 10.6%, respectively, for the current year (ending January 2024). The Zacks Consensus Estimate for current-year earnings has improved 1.7% over the last 30 days. GES has a current dividend yield of 5.20%.<\/p>\n J&J Snack Foods Corp. <\/strong>JJSF manufactures, markets, and distributes nutritional snack foods and beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada. JJSF operates through three segments: Food Service, Retail Supermarkets, and Frozen Beverages.<\/p>\n J&J Snack Foods has an expected revenue and earnings growth rate of 3.6% and 25.9%, respectively, for the current year (ending September 2024). The Zacks Consensus Estimate for current-year earnings has improved 6.6% over the last 60 days. JJSF has a current dividend yield of 1.66%. Guess?, Inc. (GES): Free Stock Analysis Report<\/p>\n Erie Indemnity Company (ERIE): Free Stock Analysis Report<\/p>\n J & J Snack Foods Corp. (JJSF): Free Stock Analysis Report<\/p>\n LSI Industries Inc. (LYTS): Free Stock Analysis Report<\/p>\n To read this article on Zacks.com click here.<\/p>\n Zacks Investment Research<\/p>\n This article originally appeared on Zacks<\/i><\/p>\n Sponsored: Tips for Investing<\/b><\/p>\n A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.<\/p>\n Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses,\tconsider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.<\/p>\nOur Top Picks<\/h3>\n
\nCaterpillar Inc. (CAT): Free Stock Analysis Report<\/p>\n