We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Investor sentiment took a hit after the Consumer Price Index, the most accepted gauge for inflation, came in higher than expected for the month of January 2024. Due to an unexpected rise in inflation, the Federal Reserve’s rate cut is most likely to be delayed further.
The key indexes, the Dow, the S&P 500 and the tech-heavy Nasdaq, have returned 15.1%, 23% and 34.2%, respectively, over the past year.
The Bureau of Labor Statistics reported on Feb 14 that the headline inflation for the month of January rose 0.3% monthly and 3.1% on a year-over-year basis against the street expectation of 0.2% and 2.9%, respectively. Higher shelter prices accounted for much of the rise. Since the current inflation is higher than the Fed’s ambitious target of 2%, the expectation of an interest rate cut in March seems unlikely.
The Fed has already kept the interest rate at its highest level since 2001 in the range of 5.25-5.5% with an intention to slow down the overall economy. By maintaining high interest rates, the Fed wants to cool off demand by making borrowing money more expensive. This would impact corporate performance and, thereby, stock prices. Although investors are expecting the central bank to be less hawkish this year, keeping in mind sticky inflation, the Fed will most probably keep the interest rate high for longer.
Prudent investors who wish to invest their money for regular income and capital preservation can buy 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.
Koppers is headquartered in Pittsburgh, PA. This Zacks Rank #3 company is an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds.
On Feb 14, KOP declared that its shareholders would receive a dividend of 7 cents a share on Mar 25, 2024. KOP has a dividend yield of 0.5%.
In the past five years, KOP has increased its dividend three times. Its payout ratio at present sits at 5% of earnings. Check Koppers’ dividend history here.
Westinghouse Air Brake Technologies is headquartered in Pittsburgh, PA. This Zacks Rank #2 (Buy) company is a provider of locomotives, value-added, technology-based equipment, systems and services to the freight rail and passenger transit industries across the globe.
On Feb 14, WAB declared that its shareholders would receive a dividend of 20 cents a share on Mar 8, 2024. WAB has a dividend yield of 0.5%.
CSX is headquartered in Jacksonville, FL. This Zacks Rank #3 company offers rail-based freight transportation services like traditional rail service, transport of intermodal containers and trailers apart from rail-to-truck transfers.
On Feb 14, CSX declared that its shareholders would receive a dividend of 12 cents a share on Mar 15, 2024. CSX has a dividend yield of 1.2%.
In the past five years, CSX has increased its dividend six times. Its payout ratio at present sits at 24% of earnings. Check CSX’s dividend history here.
SherwinWilliams is headquartered in Cleveland, OH. This Zacks Rank #3 company is into manufacturing and sales of paints, coatings and related products.
On Feb 14, SHW declared that its shareholders would receive a dividend of 72 cents a share on Mar 8, 2024. SHW has a dividend yield of 0.8%.
Image: Bigstock
5 Stocks to Watch on Their Recent Dividend Hikes
Investor sentiment took a hit after the Consumer Price Index, the most accepted gauge for inflation, came in higher than expected for the month of January 2024. Due to an unexpected rise in inflation, the Federal Reserve’s rate cut is most likely to be delayed further.
The key indexes, the Dow, the S&P 500 and the tech-heavy Nasdaq, have returned 15.1%, 23% and 34.2%, respectively, over the past year.
The Bureau of Labor Statistics reported on Feb 14 that the headline inflation for the month of January rose 0.3% monthly and 3.1% on a year-over-year basis against the street expectation of 0.2% and 2.9%, respectively. Higher shelter prices accounted for much of the rise. Since the current inflation is higher than the Fed’s ambitious target of 2%, the expectation of an interest rate cut in March seems unlikely.
The Fed has already kept the interest rate at its highest level since 2001 in the range of 5.25-5.5% with an intention to slow down the overall economy. By maintaining high interest rates, the Fed wants to cool off demand by making borrowing money more expensive. This would impact corporate performance and, thereby, stock prices. Although investors are expecting the central bank to be less hawkish this year, keeping in mind sticky inflation, the Fed will most probably keep the interest rate high for longer.
Prudent investors who wish to invest their money for regular income and capital preservation can buy 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 that note, let us look at companies like Genuine Parts (GPC - Free Report) , Koppers (KOP - Free Report) , Westinghouse Air Brake Technologies (WAB - Free Report) , CSX (CSX - Free Report) and SherwinWilliams (SHW - Free Report) that have lately hiked their dividend payouts.
Genuine Parts is headquartered in Atlanta, GA. Zacks Rank #3 (Hold) company distributes automotive and industrial replacement parts and materials. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Feb 15, GPC announced that its shareholders would receive a dividend of $1 a share on Apr 1, 2024. GPC has a dividend yield of 2.6%.
Over the past five years, GPC has increased its dividend six times. Its payout ratio now sits at 42% of earnings. Check Genuine Parts' dividend history here.
Genuine Parts Company Dividend Yield (TTM)
Genuine Parts Company dividend-yield-ttm | Genuine Parts Company Quote
Koppers is headquartered in Pittsburgh, PA. This Zacks Rank #3 company is an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds.
On Feb 14, KOP declared that its shareholders would receive a dividend of 7 cents a share on Mar 25, 2024. KOP has a dividend yield of 0.5%.
In the past five years, KOP has increased its dividend three times. Its payout ratio at present sits at 5% of earnings. Check Koppers’ dividend history here.
Koppers Holdings Inc. Dividend Yield (TTM)
Koppers Holdings Inc. dividend-yield-ttm | Koppers Holdings Inc. Quote
Westinghouse Air Brake Technologies is headquartered in Pittsburgh, PA. This Zacks Rank #2 (Buy) company is a provider of locomotives, value-added, technology-based equipment, systems and services to the freight rail and passenger transit industries across the globe.
On Feb 14, WAB declared that its shareholders would receive a dividend of 20 cents a share on Mar 8, 2024. WAB has a dividend yield of 0.5%.
Over the past five years, WAB has increased its dividend three times, and its payout ratio presently sits at 12% of earnings. Check Westinghouse Air Brake Technologies’ dividend history here.
Westinghouse Air Brake Technologies Corporation Dividend Yield (TTM)
Westinghouse Air Brake Technologies Corporation dividend-yield-ttm | Westinghouse Air Brake Technologies Corporation Quote
CSX is headquartered in Jacksonville, FL. This Zacks Rank #3 company offers rail-based freight transportation services like traditional rail service, transport of intermodal containers and trailers apart from rail-to-truck transfers.
On Feb 14, CSX declared that its shareholders would receive a dividend of 12 cents a share on Mar 15, 2024. CSX has a dividend yield of 1.2%.
In the past five years, CSX has increased its dividend six times. Its payout ratio at present sits at 24% of earnings. Check CSX’s dividend history here.
CSX Corporation Dividend Yield (TTM)
CSX Corporation dividend-yield-ttm | CSX Corporation Quote
SherwinWilliams is headquartered in Cleveland, OH. This Zacks Rank #3 company is into manufacturing and sales of paints, coatings and related products.
On Feb 14, SHW declared that its shareholders would receive a dividend of 72 cents a share on Mar 8, 2024. SHW has a dividend yield of 0.8%.
In the past five years, SHW has increased its dividend seven times. Its payout ratio at present sits at 23% of earnings. Check SherwinWilliams’ dividend history here.
The Sherwin-Williams Company Dividend Yield (TTM)
The Sherwin-Williams Company dividend-yield-ttm | The Sherwin-Williams Company Quote