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5 Stocks to Buy on Dividend Hikes as Recession Fears Grow
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Markets ended a solid first quarter but volatility returned in April, with investors confused about how long the Fed will continue with its interest rate hike policy. Finally, on May 3, the Fed went ahead with its planned interest rate hike and increased it by another 25 basis points, lifting its benchmark rate to the 5.00-5.25% range.
This is the 10th consecutive rate hike by the Fed in the past year. Wednesday’s rate hike was expected but indexes plummeted once again on growing fears of recession. This saw the Dow, the S&P 500 and the Nasdaq closing 0.8%, 0.7% and 0.5% lower, respectively.
Inflation has shown signs of easing over the past month but it is still way above the Fed’s target level of 2%. Although the Fed also signaled that it may pause further hikes and watch the course that the economy takes, market participants are already worried that a probable recession at the end of this year will hurt stocks extensively.
The housing and manufacturing sector has already seen a massive contraction over the past few quarters. Also, consumer spending is slowing, which is impacting retail sales, and the resilient labor market has finally started showing signs of slowing, which might push the economy into a recession.
Given the situation, an astute investor would prefer betting on dividend-paying stocks. Dividend stocks with a solid business plan and a proven track record are known for handling market turbulence.
Dividend stocks further minimize market volatility even while assuring consistent cash flow. Additionally, during times of market turbulence, dividend-paying companies have consistently outperformed non-dividend-paying companies.
Otis Worldwide Corporation is one of the leading elevator and escalator manufacturing, installation and service companies. OTIS has expanded business in more than 200 countries and territories across the world. Also, Otis Worldwide Corporation has global scale and local focus with more than 1,400 branches and offices, and a direct physical presence in approximately 80 countries.
On Apr 25, Otis Worldwide Corporation announced that its shareholders would receive a dividend of $0.34 a share on Jun 9, 2023. OTIS has a dividend yield of 1.34%. Over the past five years, Otis Worldwide Corporation has increased its dividend three times, and its payout ratio at present sits at 36% of earnings. Check Otis Worldwide Corporation’s dividend history here.
Ethan Allen Interiors Inc. is a leading interior design company and manufacturer and retailer of quality home furnishings. ETD offers free interior design services to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of Design Centers in the United States and abroad. Ethan Allen has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Apr 25, Ethan Allen Interiorsdeclared that its shareholders would receive a dividend of $0.36 a share on May 25, 2023. ETD has a dividend yield of 4.72%. Over the past five years, Ethan Allen Interiorshas increased its dividend seven times, and its payout ratio at present sits at 30% of earnings. Check Ethan Allen Interiors’dividend history here.
W.W. Grainger, Inc. is a broad-line, business-to-business distributor of maintenance, repair and operating products and services. GWW’s operations are primarily in North America, Japan and the U.K. W.W. Grainger’s customers represent a wide array of industries, including government, manufacturing, transportation, commercial and contractors.
On Apr 26, W.W. Grainger announced that its shareholders would receive a dividend of $1.86 a share on Jun 1, 2023. GWW has a dividend yield of 1.00%. Over the past five years, W.W. Grainger has increased its dividend six times, and its payout ratio at present sits at 21% of earnings. Check W.W. Grainger’s dividend history here.
Rogers Communications Inc. provides cable television, high-speed Internet access, and video retailing through its wholly-owned subsidiary, Rogers Cable and Telecom. RCI also provides wireless voice, data, and messaging services through its wholly owned subsidiary, Rogers Wireless. Additionally, Rogers Communicationsowns and operates radio and television broadcasting stations, televised shopping networks, consumer magazines, as well as trade and professional publications through its wholly-owned subsidiary, Rogers Media.
On Apr 26, Rogers Communications declared that its shareholders would receive a dividend of $0.37 a share on Jul 5, 2023. RCI has a dividend yield of 2.99%. Over the past five years, Rogers Communications has increased its dividend 10 times, and its payout ratio at present sits at 50% of earnings. Check Rogers Communications’ dividend history here.
Parker-Hannifin Corporation is a global diversified manufacturer of motion & control technologies and systems. PH provides precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets.
On Apr 26, Parker-Hannifindeclared that its shareholders would receive a dividend of $1.48 a share on Jun 2, 2023. PH has a dividend yield of 1.64%. Over the past five years, Parker-Hannifinhas increased its dividend five times, and its payout ratio at present sits at 27% of earnings. Check Parker-Hannifin’s dividend history here.
Image: Bigstock
5 Stocks to Buy on Dividend Hikes as Recession Fears Grow
Markets ended a solid first quarter but volatility returned in April, with investors confused about how long the Fed will continue with its interest rate hike policy. Finally, on May 3, the Fed went ahead with its planned interest rate hike and increased it by another 25 basis points, lifting its benchmark rate to the 5.00-5.25% range.
This is the 10th consecutive rate hike by the Fed in the past year. Wednesday’s rate hike was expected but indexes plummeted once again on growing fears of recession. This saw the Dow, the S&P 500 and the Nasdaq closing 0.8%, 0.7% and 0.5% lower, respectively.
Inflation has shown signs of easing over the past month but it is still way above the Fed’s target level of 2%. Although the Fed also signaled that it may pause further hikes and watch the course that the economy takes, market participants are already worried that a probable recession at the end of this year will hurt stocks extensively.
The housing and manufacturing sector has already seen a massive contraction over the past few quarters. Also, consumer spending is slowing, which is impacting retail sales, and the resilient labor market has finally started showing signs of slowing, which might push the economy into a recession.
Given the situation, an astute investor would prefer betting on dividend-paying stocks. Dividend stocks with a solid business plan and a proven track record are known for handling market turbulence.
Dividend stocks further minimize market volatility even while assuring consistent cash flow. Additionally, during times of market turbulence, dividend-paying companies have consistently outperformed non-dividend-paying companies.
Five such companies are Otis Worldwide Corporation (OTIS - Free Report) , Ethan Allen Interiors Inc. (ETD - Free Report) , W.W. Grainger, Inc. (GWW - Free Report) , Rogers Communications Inc. (RCI - Free Report) and Parker-Hannifin Corporation (PH - Free Report) .
Otis Worldwide Corporation is one of the leading elevator and escalator manufacturing, installation and service companies. OTIS has expanded business in more than 200 countries and territories across the world. Also, Otis Worldwide Corporation has global scale and local focus with more than 1,400 branches and offices, and a direct physical presence in approximately 80 countries.
On Apr 25, Otis Worldwide Corporation announced that its shareholders would receive a dividend of $0.34 a share on Jun 9, 2023. OTIS has a dividend yield of 1.34%. Over the past five years, Otis Worldwide Corporation has increased its dividend three times, and its payout ratio at present sits at 36% of earnings. Check Otis Worldwide Corporation’s dividend history here.
Otis Worldwide Corporation Dividend Yield (TTM)
Otis Worldwide Corporation dividend-yield-ttm | Otis Worldwide Corporation Quote
Ethan Allen Interiors Inc. is a leading interior design company and manufacturer and retailer of quality home furnishings. ETD offers free interior design services to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of Design Centers in the United States and abroad. Ethan Allen has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Apr 25, Ethan Allen Interiorsdeclared that its shareholders would receive a dividend of $0.36 a share on May 25, 2023. ETD has a dividend yield of 4.72%. Over the past five years, Ethan Allen Interiorshas increased its dividend seven times, and its payout ratio at present sits at 30% of earnings. Check Ethan Allen Interiors’dividend history here.
Ethan Allen Interiors Inc. Dividend Yield (TTM)
Ethan Allen Interiors Inc. dividend-yield-ttm | Ethan Allen Interiors Inc. Quote
W.W. Grainger, Inc. is a broad-line, business-to-business distributor of maintenance, repair and operating products and services. GWW’s operations are primarily in North America, Japan and the U.K. W.W. Grainger’s customers represent a wide array of industries, including government, manufacturing, transportation, commercial and contractors.
On Apr 26, W.W. Grainger announced that its shareholders would receive a dividend of $1.86 a share on Jun 1, 2023. GWW has a dividend yield of 1.00%. Over the past five years, W.W. Grainger has increased its dividend six times, and its payout ratio at present sits at 21% of earnings. Check W.W. Grainger’s dividend history here.
W.W. Grainger, Inc. Dividend Yield (TTM)
W.W. Grainger, Inc. dividend-yield-ttm | W.W. Grainger, Inc. Quote
Rogers Communications Inc. provides cable television, high-speed Internet access, and video retailing through its wholly-owned subsidiary, Rogers Cable and Telecom. RCI also provides wireless voice, data, and messaging services through its wholly owned subsidiary, Rogers Wireless. Additionally, Rogers Communicationsowns and operates radio and television broadcasting stations, televised shopping networks, consumer magazines, as well as trade and professional publications through its wholly-owned subsidiary, Rogers Media.
On Apr 26, Rogers Communications declared that its shareholders would receive a dividend of $0.37 a share on Jul 5, 2023. RCI has a dividend yield of 2.99%. Over the past five years, Rogers Communications has increased its dividend 10 times, and its payout ratio at present sits at 50% of earnings. Check Rogers Communications’ dividend history here.
Rogers Communication, Inc. Dividend Yield (TTM)
Rogers Communication, Inc. dividend-yield-ttm | Rogers Communication, Inc. Quote
Parker-Hannifin Corporation is a global diversified manufacturer of motion & control technologies and systems. PH provides precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets.
On Apr 26, Parker-Hannifindeclared that its shareholders would receive a dividend of $1.48 a share on Jun 2, 2023. PH has a dividend yield of 1.64%. Over the past five years, Parker-Hannifinhas increased its dividend five times, and its payout ratio at present sits at 27% of earnings. Check Parker-Hannifin’s dividend history here.
Parker-Hannifin Corporation Dividend Yield (TTM)
Parker-Hannifin Corporation dividend-yield-ttm | Parker-Hannifin Corporation Quote