Fluctuations in the stock market can be difficult to deal with, but volatility is the price you pay for better returns. However, dividend growth stocks can usually give investors more security from dramatic moves during corrections or even recessions.
Furthermore, these dividend growth stocks can give you stability in the form of goods or services that are never cut back by customers — even during uncertain times. Today we will look at two of these S&P 500 growth stocks that should keep regardless of what the market is doing.
Operating in a sector that will go away only if humanity stops existing, aptly-named Waste Management offers a good 1.5% dividend that has gone up for 18 years in a row. Reporting earnings for its Q2, the company had cash from operations of more than $1 billion for the quarter and guidance of $2.5 billion in free cash flow for the whole year of 2021.
For investors, these cash flow numbers show just how well-funded the firm’s dividends are as it spent less than $1 billion in dividends during the previous 12 months. But maybe what makes Waste Management even more interesting to investors is that the stock has greatly outperformed the S&P 500 over the past two and five years, increasing 140% and 350% over both time frames, respectively.
Looking to keep going with its growth, the company bought Advanced Disposal in late 2020 and now expects 15% revenue for fiscal year 2021 as it completely integrates the new company. Looking ahead, Waste Management might be a quiet reopening move with the pandemic ending and daily life getting back to normal leading to even better things for the company.
McCormick’s various flavorings and spices can raise the taste of any meal. In short, McCormick’s products are a cheap way to keep normalcy in life, regardless of what might happen to someone’s finances or the economy overall. Similarly, owning McCormick stock is a wonderful way to add better stability to a portfolio since it gives a nice 1.7% dividend with 35 years in a row of increases.
Also, after having sales increase of 8% in its latest quarter, the firm has been revealing that it is growth-focused and not just about income. Led by their flavor solutions segment, McCormick is also somewhat of a reopening play, since this segment sells to restaurants and other foodservice companies that slowed down during the pandemic.
Author: Blake Ambrose