If you have some spare cash with you from either dividends or a nice bonus, good on you!
While you can always choose to treat yourself to a nice meal or holiday, there is also the option of reinvesting this cash in solid stocks.
These stocks can help to grow your retirement portfolio and help you generate a steady stream of passive income.
The US market offers enticing opportunities to park your money in businesses with sustainable growth prospects.
But why stop there?
It is possible to find an attractive mix of both growth and dividends as you look through the list of potential investment candidates.
We filter out four US stocks that promise to give you the best of both worlds.
Tractor Supply Company (NASDAQ: TSCO)
Tractor Supply Company is the largest rural lifestyle retailer in the US.
The company operated 2,181 Tractor Supply stores in 49 states as of 1 July 2023 along with 192 Petsense stores in 23 states.
Tractor Supply reported a strong set of results for the first half of 2023 (1H 2023).
Revenue rose 8% year on year to US$7.5 billion with operating profit increasing by 4.5% year on year to US$803.8 million.
Net profit inched up 3.5% year on year to US$604.3 million.
The retailer increased its 1H 2023 dividend by 12% year on year to US$2.06 per share.
Tractor Supply also generated a healthy positive free cash flow of US$432.7 million, up 20.1% year on year from US$360.3 million back in 1H 2022.
The rural lifestyle retailer enjoyed a comparable store sales increase of 2.5% for its latest second quarter with transaction growth of 1.8%.
In addition, it also announced a new long-term target of 3,000 stores in the US with plans to increase new store openings to 90 per year.
Its loyalty program, Neighbor’s Club, has garnered more than 31 million members, registering a year-on-year increase of more than five million members.
McDonald’s (NYSE: MCD)
McDonald’s is one of the largest fast-food chains in the world with more than 40,000 locations in over 100 countries.
The company works on a franchise model with around 95% of its worldwide restaurants owned and operated by independent local business owners.
The fast-food giant posted a strong set of earnings for 1H 2023 as total revenue rose 9% year on year to US$12.4 billion.
Operating profit climbed 40% year on year to US$5.6 billion while net profit surged 79% year on year to US$4.1 billion.
Its free cash flow also jumped by 60.2% year on year for 1H 2023 to US$3.1 billion.
For the latest quarter, global comparable store sales increased 11.7% year on year, demonstrating the strength of McDonald’s franchises.
McDonald’s recently upped its quarterly dividend to US$1.67 per share, up 10% year on year, and represents the company’s 47th consecutive dividend increase.
Parker-Hannifin Corporation (NYSE: PH)
Parker-Hannifin is a leader in motion and control technologies with customers in the industrial and aerospace markets.
The company reported a sparkling set of earnings for its fiscal 2023 (FY2023) ending 30 June 2023.
Net sales improved by 20.2% year on year to US$19.1 billion while net profit soared 58.3% year on year to US$2.1 billion.
The company raised its annual dividend from US$4.42 to US$5.47, an increase of nearly 24% year-on-year, making this the 67th consecutive year that Parker-Hannifin has raised its dividend.
Free cash flow also increased by 17.5% year on year in FY2023 to US$2.6 billion.
Management believes the company will continue to benefit from secular trends and will build on its acquisition of Meggitt last year.
It believes it can achieve 4% to 6% organic growth in the medium term.
For FY2024, Parker-Hannifin expects sales growth of between 3% to 6% year on year with free cash flow coming in between a range of US$2.6 billion to US$3 billion.
Campbell Soup (NYSE: CPB)
Campbell Soup is a food and beverage manufacturer with iconic brands such as Campbell’s, Kettle Brand, Pepperidge Farm, Prego, and Swanson.
The company reported an encouraging set of financial numbers for FY2023.
Sales increased by 9.3% year on year to US$9.4 billion with net profit rising 13.3% year on year to US$858 million.
Campbell Soup also generated a positive free cash flow of US$773 million for the fiscal year.
The food company declared a quarterly dividend of US$0.37 per share.
Management intends to focus on growing its dominance in the “soup” category by optimising and growing its portfolio within this segment.
It also sees continued momentum in the “snacks” category and will further strengthen its “meals and beverages” segment with its recent acquisition of Sovos Brands.
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Disclosure: Royston Yang owns shares of Tractor Supply Company.
