Wall Street completed a two-month-long impressive bull run from mid-June to mid-August after finishing a highly disappointing five-month downtrend from mid-January to mid-June. However, volatility has reappeared in U.S. stock markets to some extent in the second half of August.
Near-Term Concerns
This year’s summer rally has faced hurdles as market participants remain concerned about Fed’s near-term policies and the trajectory of the Fed Fund rate’s movement. Despite initial signs of a decline, in absolute term, inflation remained elevated.
Investors remained cautious about the Aug 25-27 scheduled annual Jackson Hole Symposium of the Fed. Although no decision on interest rate hike will be taken in the meeting, the central bank will provide an important indication regarding its near-term policy prescription. This year, policies will be centered around mounting inflation.
Moreover, the U.S. GDP contracted in the first two quarters of 2022. Consumer and business spending levels are softening. Our latest estimate suggests that total earnings of the S&P 500 Index will rise 1.9% in third-quarter 2022, implying a sharp fall from 7.2% projected at the beginning of July.
Stocks in Focus
At this stage, investors should remain cautious and stay invested in dividend-paying stocks to safeguard their portfolios. We believe one should consider stocks that have recently raised their dividend payments. Five such companies are — Lam Research Corp. (LRCX - Free Report) , Intuit Inc. (INTU - Free Report) , Cable One Inc. (CABO - Free Report) , LyondellBasell Industries N.V. (LYB - Free Report) and United Community Banks Inc. (UCBI - Free Report) .
Lam Research supplies wafer fabrication equipment and services to the semiconductor industry. LRCX’s products are used by semiconductor manufacturers in front-end and WLP processes, memory, microprocessors, and other logic integrated circuits for a broad range of electronic devices. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Aug 25, 2022, Lam Research declared that its shareholders would receive a dividend of $1.725 per share on Oct 5, 2022. LRCX has a dividend yield of 1.44%. Over the past 5 years, Lam Research has increased its dividend five times, and its payout ratio presently stays at 18% of earnings. Check LRCX’s dividend history here.
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Wall Street completed a two-month-long impressive bull run from mid-June to mid-August after finishing a highly disappointing five-month downtrend from mid-January to mid-June. However, volatility has reappeared in U.S. stock markets to some extent in the second half of August.
Near-Term Concerns
This year’s summer rally has faced hurdles as market participants remain concerned about Fed’s near-term policies and the trajectory of the Fed Fund rate’s movement. Despite initial signs of a decline, in absolute term, inflation remained elevated.
Investors remained cautious about the Aug 25-27 scheduled annual Jackson Hole Symposium of the Fed. Although no decision on interest rate hike will be taken in the meeting, the central bank will provide an important indication regarding its near-term policy prescription. This year, policies will be centered around mounting inflation.
Moreover, the U.S. GDP contracted in the first two quarters of 2022. Consumer and business spending levels are softening. Our latest estimate suggests that total earnings of the S&P 500 Index will rise 1.9% in third-quarter 2022, implying a sharp fall from 7.2% projected at the beginning of July.
Stocks in Focus
At this stage, investors should remain cautious and stay invested in dividend-paying stocks to safeguard their portfolios. We believe one should consider stocks that have recently raised their dividend payments. Five such companies are — Lam Research Corp. (LRCX - Free Report) , Intuit Inc. (INTU - Free Report) , Cable One Inc. (CABO - Free Report) , LyondellBasell Industries N.V. (LYB - Free Report) and United Community Banks Inc. (UCBI - Free Report) .
Lam Research supplies wafer fabrication equipment and services to the semiconductor industry. LRCX’s products are used by semiconductor manufacturers in front-end and WLP processes, memory, microprocessors, and other logic integrated circuits for a broad range of electronic devices. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Aug 25, 2022, Lam Research declared that its shareholders would receive a dividend of $1.725 per share on Oct 5, 2022. LRCX has a dividend yield of 1.44%. Over the past 5 years, Lam Research has increased its dividend five times, and its payout ratio presently stays at 18% of earnings. Check LRCX’s dividend history here.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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