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Zacks.com featured highlights include Dr. Reddys Laboratories, Darden Restaurants, The Interpublic Group of Companies, Microchip Technology and Valero Energy

For Immediate Release

Chicago, IL – March 22, 2023 – Stocks in this week’s article are JDr. Reddys Laboratories RDY, Darden Restaurants Inc. DRI, The Interpublic Group of Companies IPG, Microchip Technology Inc. MCHP and Valero Energy VLO.

5 Top-Ranked Dividend Stocks to Counter Market Volatility

Dividend investing gained popularity in recent weeks as the banking crisis ignited worries about a broader credit crunch and liquidity strains across the market. This is especially true as dividend stocks are major sources of consistent income for investors when returns from the equity market are at risk even though these do not offer dramatic price appreciation.

In fact, stocks with a strong history of year-over-year dividend growth form a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend-paying stocks or those that have high yields. We have selected five dividend growth stocks — Dr. Reddys Laboratories, Darden Restaurants Inc., The Interpublic Group of Companies, Microchip Technology Inc. and Valero Energy — that could be compelling picks amid market volatility.

Why Dividend Growth Strategy?

Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.

Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.

Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.

Here are five of the 12 stocks that fit the bill:

India-based Dr. Reddy's Laboratories is an integrated global pharmaceutical company engaged in providing affordable and innovative medicines since 1984. The company has an estimated earnings growth of 45.1% for the fiscal year (ending March 2023) and delivered an earnings surprise of 48.61% over the last four quarters.

At present, RDY has a Zacks Rank #1 and Growth Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.

Florida-based Darden Restaurants is one of the largest casual dining restaurant operators worldwide. The company saw a solid earnings estimate revision of 3 cents over the past 30 days for the fiscal year (ending May 2023) with estimated earnings growth of 5.8%.

Darden Restaurants has a Zacks Rank #2 and Growth Score of B.

New York-based Interpublic Group of Companies provides advertising and marketing services worldwide. The company specializes in consumer advertising, digital marketing, public relations, communications planning and media buying, and specialized communications disciplines. Interpublic Group of Companies saw a solid positive estimate revision of 4 cents over the past 30 days for this year, with an estimated growth rate of 2.2%.

Interpublic Group of Companies has a Zacks Rank #1 and Growth Score of A.

Arizona-based Microchip Technology is engaged in developing and manufacturing microcontrollers, memory and analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks. The company has seen a positive earnings estimate revision of a penny for the fiscal year (ending March 2023) over the past month and has an expected earnings growth rate of 30.1%.

Microchip Technology has a Zacks Rank #2 and Growth Score of A.

Texas-based Valero Energy is the largest independent refiner and marketer of petroleum products in the United States. The company saw a solid earnings estimate revision of 60 cents over the past 30 days for this year and delivered an earnings surprise of 19% for the last four quarters.

Valero Energy has a Zacks Rank #1 and Growth Score of A.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2068285/5-top-ranked-dividend-stocks-to-counter-market-volatility

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Dr. Reddy's Laboratories Ltd (RDY) : Free Stock Analysis Report

Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report

Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report

Valero Energy Corporation (VLO) : Free Stock Analysis Report

Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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