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The U.S. financial markets continue to be volatile, with rising inflation weighing on investors' sentiment. The Consumer Price Index (CPI) displayed upward movement in recent months. In response, the Fed kept the overnight interest rate unchanged in its latest Federal Open Market Committee (FOMC) meeting. The central bank hinted at three rate cuts in 2024 despite sticky inflation.
Meanwhile, the key indexes, the Dow, the S&P 500 and the tech-heavy Nasdaq, have returned 5.5%, 10.0% and 9.3%, respectively, in the year-to-date period.
The CPI rose 0.4% in February after a 0.3% increase in January 2024. The year-on-year rise in inflation was recorded at 3.2% against the street’s expectation of 3.1%. Current inflation is still above the Fed’s target inflation of 2%.
After two days of the FOMC meeting, the central bank kept the overnight interest rate unchanged at its current range of 5.25-5.5%, the highest level since 2001. 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, the Fed wants to see further evidence of a declining inflation trend. The challenge remains to create a soft landing for the economy by striking the right balance between inflation and growth by keeping the interest rate higher 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 Independent Bank (INDB - Free Report) , Northeast Community Bancorp (NECB - Free Report) , STMicroelectronics (STM - Free Report) , Commercial Metals (CMC - Free Report) and JPMorgan Chase & Co. (JPM - Free Report) that have lately hiked their dividend payouts.
Independent Bank is headquartered in Rockland, MA. This Zacks Rank #3 (Hold) community-oriented commercial bank holding company provides commercial banking, retail banking and trust services and is managed as a single strategic unit. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Mar 21, INDB declared that its shareholders would receive a dividend of 57 cents a share on Apr 5, 2024. INDB has a dividend yield of 4.2%.
Northeast Community Bancorp is headquartered in White Plains, NY. This Zacks Rank #2 (Buy) federally chartered stock holding company, which operates as a community-oriented financial institution offering traditional financial services to consumers and businesses in its market area and its lending territory.
On Mar 21, NECB declared that its shareholders would receive a dividend of 10 cents a share on May 6, 2024. NECB has a dividend yield of 1.6%.
STMicroelectronics is headquartered in Geneva, Switzerland. This Zacks Rank #3 company is a global independent semiconductor establishment that designs, develops, manufactures and markets a broad range of semiconductor integrated circuits and discrete devices.
On Mar 21, STM announced that its shareholders would receive a dividend of 9 cents a share on Jul 2, 2024. STM has a dividend yield of 0.5%.
Commercial Metals is headquartered in Irving, TX. This Zacks Rank #3 company manufactures, recycles and markets steel and metal products, related materials and services.
On Mar 20, CMC declared that its shareholders would receive a dividend of 18 cents a share on Apr 10, 2024. CMC has a dividend yield of 1.1%.
JPMorgan Chase is headquartered in New York, NY. This Zacks Rank #3 company is one of the biggest global banks with operations in more than 100 countries.
On Mar 19, JPM declared that its shareholders would receive a dividend of $1.15 a share on Apr 30, 2024. JPM has a dividend yield of 2.1%.
Image: Bigstock
5 Stocks Worth Watching on Dividend Hikes
The U.S. financial markets continue to be volatile, with rising inflation weighing on investors' sentiment. The Consumer Price Index (CPI) displayed upward movement in recent months. In response, the Fed kept the overnight interest rate unchanged in its latest Federal Open Market Committee (FOMC) meeting. The central bank hinted at three rate cuts in 2024 despite sticky inflation.
Meanwhile, the key indexes, the Dow, the S&P 500 and the tech-heavy Nasdaq, have returned 5.5%, 10.0% and 9.3%, respectively, in the year-to-date period.
The CPI rose 0.4% in February after a 0.3% increase in January 2024. The year-on-year rise in inflation was recorded at 3.2% against the street’s expectation of 3.1%. Current inflation is still above the Fed’s target inflation of 2%.
After two days of the FOMC meeting, the central bank kept the overnight interest rate unchanged at its current range of 5.25-5.5%, the highest level since 2001. 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, the Fed wants to see further evidence of a declining inflation trend. The challenge remains to create a soft landing for the economy by striking the right balance between inflation and growth by keeping the interest rate higher 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 Independent Bank (INDB - Free Report) , Northeast Community Bancorp (NECB - Free Report) , STMicroelectronics (STM - Free Report) , Commercial Metals (CMC - Free Report) and JPMorgan Chase & Co. (JPM - Free Report) that have lately hiked their dividend payouts.
Independent Bank is headquartered in Rockland, MA. This Zacks Rank #3 (Hold) community-oriented commercial bank holding company provides commercial banking, retail banking and trust services and is managed as a single strategic unit. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Mar 21, INDB declared that its shareholders would receive a dividend of 57 cents a share on Apr 5, 2024. INDB has a dividend yield of 4.2%.
Over the past five years, INDB has increased its dividend five times, and its payout ratio presently sits at 41% of earnings. Check Independent Bank’s dividend history here.
Independent Bank Corp. Dividend Yield (TTM)
Independent Bank Corp. dividend-yield-ttm | Independent Bank Corp. Quote
Northeast Community Bancorp is headquartered in White Plains, NY. This Zacks Rank #2 (Buy) federally chartered stock holding company, which operates as a community-oriented financial institution offering traditional financial services to consumers and businesses in its market area and its lending territory.
On Mar 21, NECB declared that its shareholders would receive a dividend of 10 cents a share on May 6, 2024. NECB has a dividend yield of 1.6%.
In the past five years, NECB has increased its dividend three times. Its payout ratio at present sits at 8% of earnings. Check Northeast Community Bankcorp’s dividend history here.
Northeast Community Bancorp Inc. Dividend Yield (TTM)
Northeast Community Bancorp Inc. dividend-yield-ttm | Northeast Community Bancorp Inc. Quote
STMicroelectronics is headquartered in Geneva, Switzerland. This Zacks Rank #3 company is a global independent semiconductor establishment that designs, develops, manufactures and markets a broad range of semiconductor integrated circuits and discrete devices.
On Mar 21, STM announced that its shareholders would receive a dividend of 9 cents a share on Jul 2, 2024. STM has a dividend yield of 0.5%.
Over the past five years, STM has increased its dividend two times. Its payout ratio now sits at 5% of earnings. Check STMicroelectronics' dividend history here.
STMicroelectronics N.V. Dividend Yield (TTM)
STMicroelectronics N.V. dividend-yield-ttm | STMicroelectronics N.V. Quote
Commercial Metals is headquartered in Irving, TX. This Zacks Rank #3 company manufactures, recycles and markets steel and metal products, related materials and services.
On Mar 20, CMC declared that its shareholders would receive a dividend of 18 cents a share on Apr 10, 2024. CMC has a dividend yield of 1.1%.
In the past five years, CMC has increased its dividend three times. Its payout ratio at present sits at 10% of earnings. Check Commercial Metal’s dividend history here.
Commercial Metals Company Dividend Yield (TTM)
Commercial Metals Company dividend-yield-ttm | Commercial Metals Company Quote
JPMorgan Chase is headquartered in New York, NY. This Zacks Rank #3 company is one of the biggest global banks with operations in more than 100 countries.
On Mar 19, JPM declared that its shareholders would receive a dividend of $1.15 a share on Apr 30, 2024. JPM has a dividend yield of 2.1%.
Over the past five years, JPM has increased its dividend four times, and its payout ratio presently sits at 25% of earnings. Check JPMorgan Chase’s dividend history here.
JPMorgan Chase & Co. Dividend Yield (TTM)
JPMorgan Chase & Co. dividend-yield-ttm | JPMorgan Chase & Co. Quote