Investing.com -- Wolfe Research has identified ten small and mid-cap companies that stand out for their combination of high dividend growth on a last twelve months basis and strong unlevered free cash flow yields, spanning multiple sectors from consumer staples to industrials.
The research highlights companies that have demonstrated the ability to generate substantial cash flow while simultaneously increasing their dividend payouts, a dual characteristic that typically signals financial strength in the SMID cap universe. These stocks represent opportunities across diverse industries, offering investors exposure to different economic segments.
- Playtika Holding Corp. (NASDAQ:PLTK) - The communication services company tops the list, combining robust free cash flow generation with dividend growth momentum.
Playtika Holding Corp. reported a fourth-quarter earnings per share miss, though revenue slightly exceeded expectations. The company also received a rating downgrade to Neutral from Wedbush, which cited concerns over debt maturity. - Upbound Group, Inc. (NASDAQ:UPBD) - This consumer discretionary stock ranks second, demonstrating strong cash flow metrics alongside expanding dividend payments.
Upbound Group, Inc. announced strong fourth-quarter financial results, surpassing analyst expectations for both earnings per share and revenue. - Dole plc (NYSE:DOLE) - The consumer staples company secures the third position with its combination of dividend growth and free cash flow yield.
In recent news, Dole plc reported its fourth-quarter earnings, meeting EPS forecasts and surpassing revenue expectations. - Spectrum Brands Holdings, Inc. (NYSE:SPB) - Another consumer staples entry, Spectrum Brands ranks fourth on the list for its cash generation and dividend characteristics.
Spectrum Brands Holdings, Inc. posted strong first-quarter results, significantly exceeding analyst forecasts for earnings per share and revenue. Following the report, both Canaccord Genuity and Oppenheimer raised their price targets on the company. - Teekay Tankers Ltd. (NYSE:TNK) - The energy sector representative takes fifth place, showing strength in both dividend growth and unlevered free cash flow yield.
Teekay Tankers Ltd. delivered robust fourth-quarter results, with both its earnings per share and revenue significantly surpassing analyst estimates. - World Kinect Corp. (NYSE:WKC) - The second energy company on the list ranks sixth, demonstrating solid performance in the key metrics evaluated.
World Kinect Corp. recently announced an increase in compensation for its Chief Accounting Officer and an update to its executive severance policy. - Perrigo Company Public Limited Company (NYSE:PRGO) - This healthcare stock places seventh, balancing dividend growth with free cash flow generation.
Perrigo Company Public Limited Company reported a slight miss on fourth-quarter earnings per share, while revenue came in ahead of forecasts. Separately, Jefferies maintained its Hold rating on the company. - DENTSPLY SIRONA Inc. (NASDAQ:XRAY) - The dental products and technologies company ranks eighth among healthcare representatives on the list.
DENTSPLY SIRONA Inc. announced mixed fourth-quarter results, with revenue beating forecasts but earnings per share falling short of expectations. Mizuho subsequently raised its price target on the company's shares while maintaining a Neutral rating. - Hub Group Inc. (NASDAQ:HUBG) - The industrials sector entry takes the ninth spot with its combination of cash flow yield and dividend expansion.
Hub Group Inc. announced a delay in filing its annual report to finalize results after identifying an accounting error that understated costs. Following the disclosure, the company received rating downgrades from several firms, including Baird and Stifel. - Costamare Inc. (NYSE:CMRE) - Rounding out the list in tenth position, this industrials company completes the diverse sector representation identified by Wolfe Research.
Costamare Inc. reported fourth-quarter earnings that missed analyst expectations, although its revenue for the period exceeded forecasts.
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