3 Rock-Solid Dividend Growth Stocks to Fortify Your Portfolio

Stocks declined for a second day on Wednesday as the Federal Reserve indicated that it would take a more aggressive approach to its policy changes to combat inflation, raising concerns of an economic slowdown. The Dow Jones Industrial Average fell 144.67 points to 34,496.51, while the S&P 500 slid…

0.97% to 4,481.15. The Nasdaq Composite declined 2.22% to 13,888.82 after sliding about 2.3% on Tuesday.

“It was a warning to anyone who thinks that the Fed is going to be more dovish in their fight against inflation,” asserted Quincy Krosby, chief equity strategist at LPL Financial. Furthermore, the Russia-Ukraine war threatens to slow the global economy, further hindering supply chains and fostering renewed economic uncertainty.

Given the heightened market volatility, we think fundamentally solid dividend stocks AmerisourceBergen Corporation (ABC), EOG Resources, Inc. (EOG), and Archer-Daniels-Midland Company (ADM) could be good additions to one’s portfolio to ensure a stable stream of income.

AmerisourceBergen Corporation (ABC)

ABC is a global pharmaceutical sourcing and distribution services company that operates through two segments U.S. Healthcare Solutions and International Healthcare Solutions. ABC is headquartered in Chesterbrook, Pa.

ABC’s $1.84 annual dividend yields 1.16% at its current share price. On February 2, the company declared a $0.46 quarterly dividend, which was payable on February 28. ABC’s dividend payouts have increased at a CAGR of 4.9% over the past three years and 5% over the past five years. It has a record of 17 consecutive years of dividend growth.

ABC’s revenue increased 13.5% from the prior-year quarter to $59.63 billion in its fiscal first quarter, ended Dec.31, 2021. Its operating income was $644.41 million, up 17.8% year-over-year, while the net income attributable to ABC for the quarter came in at $449.11 million, reflecting a 19.8% increase year-over-year. Its EPS stood at $2.13 billion, up 17.7% year-over-year.

ABC’s revenue for its fiscal second quarter, ending March 31, 2022, is expected to be $57.19 billion, indicating 16.4% year-over-year growth. The company’s EPS is expected to increase 14.8% from the year-ago value to $2.90. ABC also beat the consensus EPS estimates in each of the trailing four quarters.


ABC’s stock has gained 36.3% in price over the past year and 35.3% over the past six months to close its last trading session at $158.14.

ABC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our POWR ratings system. The POWR ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

The company also has a B grade in Growth, Value, and Stability. It is ranked #11 of 84 stocks in the Medical – Services industry.

To get ABC’s ratings for Momentum, Quality, and Sentiment, click here.

EOG Resources, Inc. (EOG)

EOG in Houston, Tex., is an independent oil and natural gas company that  explores for, develops, produces, and markets crude oil, natural gas liquids (NGLs), and natural gas.

EOG identified 700 new net double-premium locations in 2021, replacing 170% of the approximately 410 net double-premium wells drilled in 2021. The new double-premium locations are spread across EOG’s portfolio of high-return plays. Its double-premium inventory increased to 6,000 net locations, representing more than 11 years of drilling at EOG’s current pace.

Click here to checkout our Healthcare Sector Report for 2022

EOG’s  $3 annual dividend yields 2.53% at its current share price. On February 24, EOG declared a $0.75 per share dividend, payable April 29, 2022, to stockholders of record as of April 15, 2022. EOG also declared a…

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