Eyeing Dividend Growers with Unusual Earnings Dates

Wall Street Horizon
6 min read

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The bar is raised for Q3. With a handful of earnings reports delivered from major banks, companies from other sectors begin now to report results to the street. This quarter, though, the S&P 500's EPS growth rate is not all that impressive, at under 5%.[1] We discussed it last week in our Q4 2024 Investor Conference & Events Highlights missive, but there are new developments.

The US Dollar Index has been on the rise, interest rates continue to firm following the Fed's first rate cut a month ago, and the threat of higher oil prices amid renewed geopolitical tensions is a worry. These are key potential macro headwinds, and while they may not be fully felt in earnings updates from multinationals in the weeks ahead, Q4's stout bottom-line growth rate could be called into question (not to mention 2025's lofty S&P 500 EPS estimate).

Those in the C-suite don't seem too worried. Dividend-increase announcements are on the rise according to Wall Street Horizon data, while corporations continue to be big buyers of their own stock.[2] Throw in upper-end consumers who don't seem to quit spending and the potential for improved economic activity from China following a bazooka stimulus package announced earlier this month, and the bull train has pressed on.

There are certainly risks out there, but take a step back in time to a year ago. Global stocks were in the throes of an old-fashioned 10% market correction, led lower by mega-cap tech. Worries about a potential war in the Middle East, lasting inflation, and a protracted period of high interest rates (remember higher for longer?) had the bears feeling in command as the fourth quarter began. The bulls eventually took charge, though, and the S&P 500 is up by more than 35%, dividends included, from 12 months ago. In fact, the bull market itself just blew out the candles on its second birthday last weekend.

So, will the momentum continue through year-end? The upside freight train is chugging hard - the SPX posting its best year-to-date return through Q3 since 1997.[3] We're on a bit of a dividend kick here at Wall Street Horizon, so let's double-click on three companies that recently announced payout hikes each has an upcoming earnings date that deviates from historical norms. Perhaps investors can glean clues as to where the market's tracks will lead in the weeks ahead.

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