The bearish sentiment in U.S. stock markets prevails mostly due to multi-decade high inflation. Worried investors who have lost a massive amount of wealth since late 2021 continue to take refuge in safe investments that could preserve their capital and earn regular returns.
The Consumer Price Index (CPI) for the month of December dropped to 6.5% after record highs in September and August 2022. Though the Federal Reserve’s inflation-fighting monetary policy began to yield results, its 2% inflation mark for a balanced economy seems a distant reality. The cenral bank will continue to increase the overnight interest rate, though the pace of rate hike in terms of percentage points could be lower, keeping in mind the recent developments.
In its fight against inflation, the Fed raised the key interest rate seven times in 2022 and is expected to continue to do the same in 2023, thereby making it the highest in 15 years. Due to the high borrowing cost, which Americans are not comfortable with, it is that expected there will be slower growth and higher unemployment in recent times.
Globally, geopolitical tensions due to the ongoing war in Ukraine and Russia have created the worst energy crises in recent decades, causing a global supply-chain disturbance. Slowdown in growth and high inflation prevail in many countries due to high energy prices. Also, China has slowly started to recover from the last COVID resurgence. The country will take time to regain former efficiency. All these have disrupted the global supply-chain mechanism.
Thus, investors seeking regular income in such an unstable situation may invest in matured businesses with a regular dividend payout. These stocks have shown profitability due to their proven business model, which helps them stay afloat during adverse economic conditions.
Investors can expect a regular flow of income along with the preservation of capital against volatile market conditions. The company, which tends to reward its investors with a high dividend payout, comparatively outperforms non-dividend-paying stocks during market volatility.
On that note, let us look at companies like S&P Global (SPGI - Free Report) , MarketAxess (MKTX - Free Report) , Penske Automotive Group (PAG - Free Report) , Citizens Community Bancorp (CZWI - Free Report) and Franklin Electric Co. (FELE - Free Report) that have lately hiked their dividend payments.
S&P Global is a NY-based company. This Zacks Rank #3 (Hold) company is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
You can see the complete list of today’s Zacks #1 Rank stocks here.
On Jan 25, 2023, SPGI declared that its shareholders would receive a dividend of 90 cents a share on Mar 10, 2023. SPGI has a dividend yield of 0.93%.
Over the past five years, SPGI has increased its dividend six times and its payout ratio at present sits at 29% of earnings. Check S&P’s dividend history here.
On Jan 23, CZWI declared that its shareholders would receive a dividend of 29 cents a share on Feb 17, 2023. CZWI has a dividend yield of 2.09%.
In the past five-year period, CZWI has increased its dividend five times. Its payout ratio at present sits at 14% of earnings. Check Citizens Community Bancorp’s dividend history.
Franklin Electric Co. is a Fort Wayne, IN-based company. This Zacks Rank #3 company is a global leader in the production and marketing of systems and components for the movement of water and automotive fuels.
On Jan 23, FELE announced that its shareholders would receive a dividend of 23 cents a share on Feb 16, 2023. FELE has a dividend yield of 0.91%.
Over the past five years, FELE has increased its dividend six times. Its payout ratio now sits at 20% of earnings. Check Franklin Electric Co’s dividend history here.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
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The bearish sentiment in U.S. stock markets prevails mostly due to multi-decade high inflation. Worried investors who have lost a massive amount of wealth since late 2021 continue to take refuge in safe investments that could preserve their capital and earn regular returns.
The Consumer Price Index (CPI) for the month of December dropped to 6.5% after record highs in September and August 2022. Though the Federal Reserve’s inflation-fighting monetary policy began to yield results, its 2% inflation mark for a balanced economy seems a distant reality. The cenral bank will continue to increase the overnight interest rate, though the pace of rate hike in terms of percentage points could be lower, keeping in mind the recent developments.
In its fight against inflation, the Fed raised the key interest rate seven times in 2022 and is expected to continue to do the same in 2023, thereby making it the highest in 15 years. Due to the high borrowing cost, which Americans are not comfortable with, it is that expected there will be slower growth and higher unemployment in recent times.
Globally, geopolitical tensions due to the ongoing war in Ukraine and Russia have created the worst energy crises in recent decades, causing a global supply-chain disturbance. Slowdown in growth and high inflation prevail in many countries due to high energy prices. Also, China has slowly started to recover from the last COVID resurgence. The country will take time to regain former efficiency. All these have disrupted the global supply-chain mechanism.
Thus, investors seeking regular income in such an unstable situation may invest in matured businesses with a regular dividend payout. These stocks have shown profitability due to their proven business model, which helps them stay afloat during adverse economic conditions.
Investors can expect a regular flow of income along with the preservation of capital against volatile market conditions. The company, which tends to reward its investors with a high dividend payout, comparatively outperforms non-dividend-paying stocks during market volatility.
On that note, let us look at companies like S&P Global (SPGI - Free Report) , MarketAxess (MKTX - Free Report) , Penske Automotive Group (PAG - Free Report) , Citizens Community Bancorp (CZWI - Free Report) and Franklin Electric Co. (FELE - Free Report) that have lately hiked their dividend payments.
S&P Global is a NY-based company. This Zacks Rank #3 (Hold) company is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
You can see the complete list of today’s Zacks #1 Rank stocks here.
On Jan 25, 2023, SPGI declared that its shareholders would receive a dividend of 90 cents a share on Mar 10, 2023. SPGI has a dividend yield of 0.93%.
Over the past five years, SPGI has increased its dividend six times and its payout ratio at present sits at 29% of earnings. Check S&P’s dividend history here.
On Jan 23, CZWI declared that its shareholders would receive a dividend of 29 cents a share on Feb 17, 2023. CZWI has a dividend yield of 2.09%.
In the past five-year period, CZWI has increased its dividend five times. Its payout ratio at present sits at 14% of earnings. Check Citizens Community Bancorp’s dividend history.
Franklin Electric Co. is a Fort Wayne, IN-based company. This Zacks Rank #3 company is a global leader in the production and marketing of systems and components for the movement of water and automotive fuels.
On Jan 23, FELE announced that its shareholders would receive a dividend of 23 cents a share on Feb 16, 2023. FELE has a dividend yield of 0.91%.
Over the past five years, FELE has increased its dividend six times. Its payout ratio now sits at 20% of earnings. Check Franklin Electric Co’s dividend history here.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
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