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Focus on These 5 Stocks That Recently Hiked Dividends
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Wall Street has managed to give investors positive returns so far this year. The Dow, the S&P 500 and the tech-heavy NASDAQ have given 9%, 19% and 36% returns, respectively, over the year-to-date period. Investors’ confidence recovered as inflation in the United States showed a favorable trend in the past couple of months, thus raising hopes that the Federal Reserve may ease its monetary policy outlook in the near future.
The consumer price index (CPI) for the month of October remains unchanged from the previous month at 0.4% on a seasonally adjusted basis. For 12 months through October, CPI climbed 3.2% after rising 3.7% in September before seasonal adjustment. The annual rise in underlying inflation for the month of October was marked the smallest in the past two years.
According to the reports published by the Labor Department on Dec 5, 2023, job openings for the month of October decreased to 8.7 million, the lowest since March 20021. Although job openings fell dramatically, the total number of hires and total separations changed little at 5.9 million and 5.6 million, respectively.
A decline in job openings suggests that the Federal Reserve’s aggressive interest rates since March 2022 to slow the labor market and cool inflation is making its way through the economy. Although inflation is expected to cool off, it will likely be significantly higher than the Fed’s ambitious target of 2%. Investors are expecting the central bank to be less hawkish in its upcoming policy meet next week, and in the process, reduce the borrowing cost, which is affecting the corporate profitability. Fed Chairman Jerome Powell has kept the door open for further rate hikes or can keep the interest rate high for longer to win the inflation battle.
On the international front, the persistent war in the Middle East between Israel and the Palestine-based militant group Hamas amid ceasefires has disrupted the global supply chain. Such events also hurt corporate performance.
Keeping such uncertainties in mind, prudent investors seeking regular income and capital preservation can invest in dividend stocks. These companies, due to their well-established businesses, pay out regular dividends and remain profitable due to their proven business models. Companies that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.
Alexandria Real Estate Equities is headquartered in Pasadena, CA. This Zacks Rank #3 (Hold) company is an urban office real estate investment trust (REIT) with a particular focus on collaborative life science, agtech and technology campuses. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Dec 4, ARE declared that its shareholders would receive a dividend of $1.27 cents a share on Jan 12, 2024. ALV has a dividend yield of 4.1%.
Suzano is based in Salvador, Brazil. This Zacks Rank #2 (Buy) company is a producer of eucalyptus pulp as well as paper producers.
On Dec 1, SUZ declared that its shareholders would receive a dividend of 20 cents a share on Jan 18, 2024. SUZ has a dividend yield of 3.1%.
In the past five years, SUZ has increased its dividend two times. Its payout ratio at present sits at 13% of earnings. Check Suzano’s dividend history here.
Graco is headquartered in Minneapolis, MN. This Zacks Rank #3 company is engaged in designing, manufacturing and marketing equipment and systems used to measure, move, control, spray and dispense fluid as well as powder materials.
On Dec 1, GGG declared that its shareholders would receive a dividend of 26 cents a share on Feb 7, 2024. GGG has a dividend yield of 1.1%.
In the past five years, GGG has increased its dividend six times. Its payout ratio at present sits at 32% of earnings. Check Graco’s dividend history here.
ChoiceOne Financial Services is headquartered in Sparta, MI. This Zacks Rank #3 company offers insurance and investment products through its subsidiary.
On Nov 29, COFS declared that its shareholders would receive a dividend of 27 cents a share on Dec 29, 2023. COFS has a dividend yield of 3.9%.
LaZBoy is headquartered in Monroe, MI. This Zacks Rank #1 (Strong Buy) company is one of the world's leading residential furniture producers, marketing furniture for every room of the home.
On Nov 29, LZB announced that its shareholders would receive a dividend of 20 cents a share on Dec 18, 2023. LZB has a dividend yield of 2%.
Over the past five years, LZB has increased its dividend seven times. Its payout ratio now sits at 22% of earnings. Check LaZBoy’s dividend history here.
Image: Bigstock
Focus on These 5 Stocks That Recently Hiked Dividends
Wall Street has managed to give investors positive returns so far this year. The Dow, the S&P 500 and the tech-heavy NASDAQ have given 9%, 19% and 36% returns, respectively, over the year-to-date period. Investors’ confidence recovered as inflation in the United States showed a favorable trend in the past couple of months, thus raising hopes that the Federal Reserve may ease its monetary policy outlook in the near future.
The consumer price index (CPI) for the month of October remains unchanged from the previous month at 0.4% on a seasonally adjusted basis. For 12 months through October, CPI climbed 3.2% after rising 3.7% in September before seasonal adjustment. The annual rise in underlying inflation for the month of October was marked the smallest in the past two years.
According to the reports published by the Labor Department on Dec 5, 2023, job openings for the month of October decreased to 8.7 million, the lowest since March 20021. Although job openings fell dramatically, the total number of hires and total separations changed little at 5.9 million and 5.6 million, respectively.
A decline in job openings suggests that the Federal Reserve’s aggressive interest rates since March 2022 to slow the labor market and cool inflation is making its way through the economy. Although inflation is expected to cool off, it will likely be significantly higher than the Fed’s ambitious target of 2%. Investors are expecting the central bank to be less hawkish in its upcoming policy meet next week, and in the process, reduce the borrowing cost, which is affecting the corporate profitability. Fed Chairman Jerome Powell has kept the door open for further rate hikes or can keep the interest rate high for longer to win the inflation battle.
On the international front, the persistent war in the Middle East between Israel and the Palestine-based militant group Hamas amid ceasefires has disrupted the global supply chain. Such events also hurt corporate performance.
Keeping such uncertainties in mind, prudent investors seeking regular income and capital preservation can invest in dividend stocks. These companies, due to their well-established businesses, pay out regular dividends and remain profitable due to their proven business models. Companies that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.
On this note, let us look at companies like Alexandria Real Estate Equities (ARE - Free Report) , Suzano (SUZ - Free Report) , Graco (GGG - Free Report) , ChoiceOne Financial Services (COFS - Free Report) and LaZBoy (LZB - Free Report) that have lately hiked their dividend payouts.
Alexandria Real Estate Equities is headquartered in Pasadena, CA. This Zacks Rank #3 (Hold) company is an urban office real estate investment trust (REIT) with a particular focus on collaborative life science, agtech and technology campuses. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Dec 4, ARE declared that its shareholders would receive a dividend of $1.27 cents a share on Jan 12, 2024. ALV has a dividend yield of 4.1%.
Over the past five years, ARE has increased its dividend 11 times, and its payout ratio presently sits at 56% of earnings. Check Alexandria Real Estate Equities’ dividend history here.
Alexandria Real Estate Equities, Inc. Dividend Yield (TTM)
Alexandria Real Estate Equities, Inc. dividend-yield-ttm | Alexandria Real Estate Equities, Inc. Quote
Suzano is based in Salvador, Brazil. This Zacks Rank #2 (Buy) company is a producer of eucalyptus pulp as well as paper producers.
On Dec 1, SUZ declared that its shareholders would receive a dividend of 20 cents a share on Jan 18, 2024. SUZ has a dividend yield of 3.1%.
In the past five years, SUZ has increased its dividend two times. Its payout ratio at present sits at 13% of earnings. Check Suzano’s dividend history here.
Suzano S.A. Sponsored ADR Dividend Yield (TTM)
Suzano S.A. Sponsored ADR dividend-yield-ttm | Suzano S.A. Sponsored ADR Quote
Graco is headquartered in Minneapolis, MN. This Zacks Rank #3 company is engaged in designing, manufacturing and marketing equipment and systems used to measure, move, control, spray and dispense fluid as well as powder materials.
On Dec 1, GGG declared that its shareholders would receive a dividend of 26 cents a share on Feb 7, 2024. GGG has a dividend yield of 1.1%.
In the past five years, GGG has increased its dividend six times. Its payout ratio at present sits at 32% of earnings. Check Graco’s dividend history here.
Graco Inc. Price and Consensus
Graco Inc. price-consensus-chart | Graco Inc. Quote
ChoiceOne Financial Services is headquartered in Sparta, MI. This Zacks Rank #3 company offers insurance and investment products through its subsidiary.
On Nov 29, COFS declared that its shareholders would receive a dividend of 27 cents a share on Dec 29, 2023. COFS has a dividend yield of 3.9%.
In the past five years, COFS has increased its dividend five times. Its payout ratio at present sits at 35% of earnings. Check ChoiceOne Financial Services’ dividend history here.
ChoiceOne Financial Services, Inc. Dividend Yield (TTM)
ChoiceOne Financial Services, Inc. dividend-yield-ttm | ChoiceOne Financial Services, Inc. Quote
LaZBoy is headquartered in Monroe, MI. This Zacks Rank #1 (Strong Buy) company is one of the world's leading residential furniture producers, marketing furniture for every room of the home.
On Nov 29, LZB announced that its shareholders would receive a dividend of 20 cents a share on Dec 18, 2023. LZB has a dividend yield of 2%.
Over the past five years, LZB has increased its dividend seven times. Its payout ratio now sits at 22% of earnings. Check LaZBoy’s dividend history here.
La-Z-Boy Incorporated Dividend Yield (TTM)
La-Z-Boy Incorporated dividend-yield-ttm | La-Z-Boy Incorporated Quote