Since the beginning of the year, the benchmark indexes have had a wild price ride. And concerns over surging inflation, the Russia-Ukraine war, and the rising interest rate environment are expected to keep the stock market under pressure in the near term. Furthermore, oil and gas prices have been rising due to fears of supply disruptions, which could exacerbate inflation, which is already at a multi-decade high.
During such perplexing market conditions, investing in the dividend-paying stocks of financially resilient companies is investors’ most preferred option. Paying regular dividends for an extended period at an increasing rate makes these stocks dependable for investors looking to dodge market volatility and generate a consistent income flow.
The Procter & Gamble Company (PG), Emerson Electric Co. (EMR), Dover Corporation (DOV), and Genuine Parts Company (GPC) have solid dividend histories and possess sound financials. So, we think it could be worth adding these stocks to one’s portfolio now.
The Procter & Gamble Company (PG)
PG in Cincinnati, Ohio, is focused on providing consumer packaged goods to consumers across the world. The company operates through the Beauty; Grooming; Health Care; Fabric and Home Care; and Baby, Feminine and Family Care segments. Its brands include Head and Shoulders, SK-II, Braun, Gillette, Venus, Crest, Oral-B, Metamucil, Neurobion, Pepto-Bismol, Vicks, Ariel, Downy, Gain, Tide, Cascade, Dawn, Fairy, Febreze, Charmin, and Bounty.
PG’s dividend payouts have grown at a 6.6% CAGR over the last three years. Its four-year average dividend yield is 2.6%, and its current dividend translates to a 2.3% yield. The company has raised its dividend payouts over more than 60 consecutive years.
PG’s net sales increased 6.1% year-over-year to $20.95 billion for the second quarter, ended Dec. 31, 2021. The company’s net income increased 9.5% year-over-year to $4.22 billion. Also, its EPS came in at $1.66, representing a 12.9% increase year-over-year.
Analysts expect PG’s EPS for the quarter ending June 30, 2022, to increase 17.7% year-over-year to $1.33. Its revenue for its fiscal year 2022 is expected to increase 4.5% year-over-year to $79.56 billion. It surpassed the Street’s EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 17.7% in price to close the last trading session at $150.72.
PG’s strong fundamentals are reflected in its POWR Ratings. It has an overall B rating, which equates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
It has a B grade for Stability and Quality. It is ranked #12 of 61 stocks in the Consumer Goods industry. Click here to see the additional ratings of PG for Growth, Value, Momentum, and Sentiment.
Emerson Electric Co. (EMR)
EMR is a global technology, software, and engineering company that provides various solutions for customers in industrial, commercial, and residential markets. The Ferguson, Miss.-based company’s segments include Automation Solutions; Climate Technologies and Tools & Home Products, which comprise the Commercial and Residential Solutions business.
On Jan.27, 2022, EMR announced the launch of premium monitoring services for its Oversight cargo services platform, transforming billions of aggregated sensor data points from GO loggers and trackers into insights customers can utilize to manage their cold chain effectively.
Over the last three years, EMR’s dividend payout has grown at a 1.5% CAGR. Its four-year average dividend yield is 2.7%, and its current dividend translates to a 2.1% yield. The company has raised its annual dividend payouts for more than 60 years.
For its fiscal first quarter, ended Dec.31, 2021, EMR’s net sales increased 7.5% year-over-year to $4.47 billion. The company’s net earnings increased 101.3% year-over-year to $896 million. In addition, its adjusted EBITA increased 15.9% year-over-year to $878 million. Also, its adjusted EPS came in at $1.05, representing a 12.9% increase year-over-year.
For its fiscal year 2022, EMR’s EPS and revenue are expected to increase 22.4% and 7.4% year-over-year to $5.02 and $19.58 billion, respectively. It surpassed consensus EPS estimates in each of the trailing four quarters. And over the past year, the stock has gained 11% to close the last trading session at $98.20.
EMR’s POWR Ratings reflect solid prospects. The stock has an overall B rating, which equates to a Buy in our proprietary rating system.
It has a B grade for Stability, Sentiment, and Quality. Within the Industrial – Equipment industry, it is ranked #19 out of 92 stocks. To see the additional ratings of EMR for Growth, Value, and Momentum, click here.
Click here to check out our Industrial Sector Report for 2022
Dover Corporation (DOV)
DOV in Downers Grove, Ill., is a diversified global manufacturer and solutions provider. The company is focused on delivering equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services. Its operating segments include Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions, and Refrigeration & Food Equipment.
On Dec. 16, 2021, DOV announced the acquisition of Acme Cryogenics, Inc. and Engineered Controls International, LLC. DOV’s President and CEO, Richard J. Tobin, said, “The acquisitions of Acme and RegO are the next step in our strategy to enhance the Fueling Solutions portfolio with growing participation in clean fuels and other attractive adjacencies.“
DOV’s dividend payouts have grown at a 1.4% CAGR over the last three years. Its four-year average dividend yield is 1.7%, and its current dividend translates to a 1.2% yield. The company has raised its dividend payouts for six years in a row.
DOV’s revenue increased 11.7% year-over-year to $1.98 billion for the fourth quarter, ended Dec. 31, 2021. The company’s adjusted net earnings increased 15% year-over-year to $258.70 million. Also, its adjusted EPS came in at $1.78, representing a 14.8% increase year-over-year.
Analysts expect DOV’s EPS and revenue for its fiscal year 2022 to increase 12.7% and 9.4% year-over-year to $8.60 and $8.65 billion, respectively. It surpassed the Street’s EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 16.6% in price to close the last trading session at $158.16.
DOV’s POWR Ratings reflect solid prospects. The stock has an overall B rating, equating to a Buy in our proprietary rating system.
It has a B grade for Stability, Sentiment, and Quality. It is ranked #21 out of 77 stocks in the B-rated Industrial – Machinery industry. Click here to see the other ratings of DOV for Growth, Value, and Momentum.
Click here to check out our Industrial Sector Report for 2022
Genuine Parts Company (GPC)
GPC in Atlanta, Ga., is a service company engaged in distributing automotive and industrial replacement parts. It operates in the Automotive Parts and Industrial Parts segments. The Automotive Parts segment distributes replacement parts for automobiles, trucks, and other vehicles. The Industrial Parts segment distributes various industrial bearings, mechanical and fluid power transmission equipment, including hydraulic and pneumatic products, material handling components, and related parts and supplies.
On Jan. 4, 2022, GPC announced the acquisition of Kaman Distribution Group. Chairman and CEO of GPC, Paul Donahue, said, “We are delighted to announce the completion of this strategic acquisition, creating significant opportunities for our customers, suppliers, teammates, and shareholders.”
Over the last three years, GPC’s dividend payout has grown at a 4.5% CAGR. While its four-year average dividend yield is 3%, the current dividend translates to a 2.8% yield. The company has raised its annual dividend payouts for more than 60 consecutive years.
For its fiscal fourth quarter, ended Dec. 31, 2021, GPC’s sales increased 12.9% year-over-year to $4.80 billion. The company’s adjusted net income increased 15.9% year-over-year to $256.22 million. Also, its adjusted EPS came in at $1.79, up 17.7% year-over-year.
For the quarter ending June 30, 2022, GPC’s EPS is expected to increase 12.6% year-over-year to $1.96. Its revenue for the quarter ending March 31, 2022, increased 13.4% year-over-year to $5.06 billion. It surpassed consensus EPS estimates in each of the trailing four quarters. And over the past year, the stock has gained 9.3% in price to close the last trading session at $128.28.
GPC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system.
It has a B grade for Stability, Sentiment, and Quality. Within the Auto Parts industry, it is ranked first out of 69 stocks. To see the other ratings of GPC for Growth, Value, and Momentum, click here.
PG shares were trading at $152.80 per share on Tuesday morning, up $2.08 (+1.38%). Year-to-date, PG has declined -6.09%, versus a -6.14% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.
4 Most Reliable Stocks to Own in 2022: Dover, Emerson Electric, Genuine Parts, and Procter & Gamble StockNews.com
