Dividend Growth Stocks: UnitedHealth, Broadcom, Dick's Earnings

Investors are urged to evaluate dividend growth stocks like UnitedHealth Group, Broadcom, and Dick's Sporting Goods as they show strong potential for returns and resilience in a volatile market, according to a recent report.

Date: 11-09-2024

AI Rating: 7

The report highlights the importance of evaluating dividend growth stocks, emphasizing that those with lower yields but higher growth rates can present superior long-term investment opportunities. Notably, three companies that stand out for their substantial dividend growth over the past decade are UnitedHealth Group, Broadcom, and Dick's Sporting Goods.

1. UnitedHealth Group (UNH)

UnitedHealth pays a quarterly dividend of $2.10, yielding 1.4%, slightly above the S&P 500 average of 1.3%. The stock has impressively increased its dividend 460% over the last ten years, representing a compound annual growth rate (CAGR) of 18.8%. The company's payout ratio is reported at a manageable 51%, showcasing healthy cash flow management that assures continued dividend payments.

2. Broadcom (AVGO)

Broadcom currently offers a quarterly dividend of $0.53, yielding 1.36%. In 2014, it was only $0.32 per share, indicating an increase of over 1,556% over the period, with a CAGR of 32.4%. The strong dividend growth and robust sales growth of around 50% year-over-year portray Broadcom as a solid growth option for dividend-seeking investors.

3. Dick's Sporting Goods (DKS)

Dick's has the highest yield among the three at 2%. Its quarterly dividend has grown from $0.125 to $1.10 in a decade, reflecting a 780% increase and a CAGR of 24.3%. The company's recent results have prompted a slight upward revision in its sales guidance, signaling its resilience despite economic fluctuations.

This analysis positions UnitedHealth, Broadcom, and Dick's Sporting Goods as attractive opportunities for investors focused on dividend growth. Their strong historical payout increases suggest a reliable investment choice.

Stocks: UNH AVGO DKS