Looking for a rock-solid income base for your portfolio? Dividend stocks are where to turn.
This week, our VIP list of Pro Picks — only available to InvestingPro subscribers — features stocks that not only are poised to beat the S&P 500, but pay out generous, reliable dividends every year. One standout is Robert Half International (NYSE:RHI), a staffing giant with a mouthwatering dividend that boasts stunning financial health.
Companies like these are a godsend for dividend investors, who stand to regularly pocket considerable cash each quarter.
Like RHI, the other Pro Picks on our list have raised their dividends annually for the past 10 years or more. Backed by strong profits and cash flows, chances are strong that these payouts will not only continue, but grow.
These companies also share another key signal: they all rock an InvestingPro financial health score of at least 2.75 (meaning they have superior cash flow, profitability, price momentum and more). For the last 7 years, stocks with these kinds of health scores have actually outperformed the market.
Just look at RHI’s numbers. The staffing behemoth pays a solid 2.9% dividend yield, and it has given its investors peace of mind by upping its payout for the past 19 straight years. Not only is its dividend high, but it has also been returning cash to shareholders by aggressively buying back shares.
Robert Half’s profits and cash flow are both exceptional, giving it an impressive 3.06 InvestingPro financial health score, and analysts figure it has more than 30% upside from current levels. Shares are down 9.1% for the year to $66.87, opening a fine opportunity for picking up shares.
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