Three Dividend Stocks Poised for Future Growth and Stability

A report highlights three dividend stocks—Emerson Electric, NextEra Energy, and Clorox—showing strong potential for future dividend growth despite market challenges. Investors may find these stocks attractive for consistent income and growth.

Date: 19-09-2024

AI Rating: 7

The report discusses three dividend stocks: Emerson Electric, NextEra Energy, and Clorox, emphasizing their historical performance and future potential. These companies are noted for their reliability in raising dividends annually, even amidst economic fluctuations.

Emerson Electric has demonstrated consistent dividend increases since 1956, with management focusing on growth markets such as automation and industrial software. The company's future growth is expected to be supported by long-term trends, with a forecast of organic revenue growth between 4% to 7%. While no specific earnings metrics were provided, its consistent dividend strategy implies an underlying positive financial outlook.

NextEra Energy stands out with its impressive record of 30 consecutive years of dividend increases. The report reveals that from 2003 to 2023, the company achieved a compound annual growth rate (CAGR) of 10% for its dividends and noted a significant projected adjusted earnings per share (EPS) range for 2024 of $3.23 to $3.43. This performance indicates solid earnings and cash flow capabilities while maintaining a healthy payout ratio of 60.2%.

Clorox, which has also managed to raise its dividend annually since 1986, has recently seen its stock increase by 24% over three months, although it peaked earlier in the year. The report draws attention to Clorox's projected adjusted EPS for fiscal 2025, ranging from $6.55 to $6.80, suggesting an 8% growth from fiscal 2024. The company also expects improvement in its gross margins, which had experienced volatility.

Stocks: EMR NEE CLX