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Best Dividend Stocks to Buy Now According to the Zacks Rank
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The likelihood of a full percentage point hike in interest rates by the Federal Reserve, a move not witnessed in more than three decades amid sky-high inflation, increased the odds of the U.S. economy sliding into a recession. The relentless uptick in prices of indispensable commodities squeezed household budgets, and now the United States has a bleak economic outlook for the near term.
Needless to say, rate hike fears are causing immense volatility in the stock market, with the broader S&P 500 Index closing in the red for the fifth straight trading session on Jul 14. This was the longest losing streak in a month. But instead of staying away from equity, investors could survive the market downfall by placing bets on dividend-paying stocks Star Bulk Carriers Corp. (SBLK - Free Report) , ZIM Integrated Shipping Services Ltd. (ZIM - Free Report) , Diana Shipping Inc. (DSX - Free Report) , Black Stone Minerals, L.P. (BSM - Free Report) and ICL Group Ltd (ICL - Free Report) , which have Zacks Rank #1 (Strong Buy) or 2 (Buy). These stocks have not only a steady flow of income but also the potential to gain considerably in the near future.
Recession Fears Are Rising
The consumer price index (CPI) — a widely followed inflation gauge — climbed 9.1% in June from a year earlier, a 41-year high, per the Labor Department. June’s CPI reading was higher than May’s annual rate of 8.6%, eventually sealing the case for a bigger rate hike by the Fed.
Market pundits are now contemplating a 100 basis-point rate hike by the Fed to curb inflation. Notably, the Fed has already hiked the benchmark interest rate by 0.75 percentage points, its highest jump since 1994, and has kept the door open for further increases in interest rates to tame the rise in prices of gas, food and rent.
The Fed’s willingness to hike interest rates, in the meantime, would lead to higher borrowing costs and push the economy into a recession. The Chicago Fed’s economic outlook for the next 12-month period in the United States already touched its peak pessimism in the month of June.
Dividend-Paying Stocks to the Rescue
Hotter-than-expected inflation leading to steeper rate hikes is no doubt increasing the chances of a recession and fueling volatility in the stock market. Despite such turmoil, investors should invest in stocks paying dividends since they have a long history of profitability and a sustainable business model.
Here are five such stocks that boast a Zacks Rank #1 or 2 and offer high yields.
Star Bulk Carriers is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector.
Star Bulk Carriers has a dividend yield of 29.6%. In the past 5-year period, SBLK has increased its dividend 5 times, and its payout has advanced 98%. Check Star Bulk Carriers’ dividend history here.
ZIM’s expected earnings growth rate for the current year is 6.9%. Currently, ZIM has a Zacks Rank #2.
Diana Shipping is a global provider of shipping transportation services.
Diana Shipping has a dividend yield of 22.8%. In the past 5-year period, DSX has increased its dividend 3 times, and its payout has advanced 101%. Check Diana Shipping’s dividend history here.
DSX’s expected earnings growth rate for the current year is 265.1%. Currently, DSX has a Zacks Rank #2.
Black Stone Minerals is the owner of oil and natural gas mineral primarily in the United States.
Black Stone Minerals has a dividend yield of 11.8%. In the past 5-year period, BSM has increased its dividend 8 times, and its payout has advanced 93%. Check Black Stone Minerals’ dividend history here.
BSM’s expected earnings growth rate for the current year is 80.7%. Currently, BSM has a Zacks Rank #1.
ICL Group is engaged in the fertilizer and specialty chemical sectors.
ICL Group has a dividend yield of 10%. In the past 5-year period, ICL has increased its dividend 7 times, and its payout has advanced 39%. Check ICL Group’s dividend history here.
Image: Shutterstock
Best Dividend Stocks to Buy Now According to the Zacks Rank
The likelihood of a full percentage point hike in interest rates by the Federal Reserve, a move not witnessed in more than three decades amid sky-high inflation, increased the odds of the U.S. economy sliding into a recession. The relentless uptick in prices of indispensable commodities squeezed household budgets, and now the United States has a bleak economic outlook for the near term.
Needless to say, rate hike fears are causing immense volatility in the stock market, with the broader S&P 500 Index closing in the red for the fifth straight trading session on Jul 14. This was the longest losing streak in a month. But instead of staying away from equity, investors could survive the market downfall by placing bets on dividend-paying stocks Star Bulk Carriers Corp. (SBLK - Free Report) , ZIM Integrated Shipping Services Ltd. (ZIM - Free Report) , Diana Shipping Inc. (DSX - Free Report) , Black Stone Minerals, L.P. (BSM - Free Report) and ICL Group Ltd (ICL - Free Report) , which have Zacks Rank #1 (Strong Buy) or 2 (Buy). These stocks have not only a steady flow of income but also the potential to gain considerably in the near future.
Recession Fears Are Rising
The consumer price index (CPI) — a widely followed inflation gauge — climbed 9.1% in June from a year earlier, a 41-year high, per the Labor Department. June’s CPI reading was higher than May’s annual rate of 8.6%, eventually sealing the case for a bigger rate hike by the Fed.
Market pundits are now contemplating a 100 basis-point rate hike by the Fed to curb inflation. Notably, the Fed has already hiked the benchmark interest rate by 0.75 percentage points, its highest jump since 1994, and has kept the door open for further increases in interest rates to tame the rise in prices of gas, food and rent.
The Fed’s willingness to hike interest rates, in the meantime, would lead to higher borrowing costs and push the economy into a recession. The Chicago Fed’s economic outlook for the next 12-month period in the United States already touched its peak pessimism in the month of June.
Dividend-Paying Stocks to the Rescue
Hotter-than-expected inflation leading to steeper rate hikes is no doubt increasing the chances of a recession and fueling volatility in the stock market. Despite such turmoil, investors should invest in stocks paying dividends since they have a long history of profitability and a sustainable business model.
Here are five such stocks that boast a Zacks Rank #1 or 2 and offer high yields.
Star Bulk Carriers is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector.
Star Bulk Carriers has a dividend yield of 29.6%. In the past 5-year period, SBLK has increased its dividend 5 times, and its payout has advanced 98%. Check Star Bulk Carriers’ dividend history here.
Star Bulk Carriers Corp. Dividend Yield (TTM)
Star Bulk Carriers Corp. dividend-yield-ttm | Star Bulk Carriers Corp. Quote
SBLK’s expected earnings growth rate for the current year is 5.1%. Currently, SBLK has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ZIM Integrated Shipping Services provides container shipping and related services, along with its subsidiaries.
ZIM Integrated Shipping Services has a dividend yield of 24.4%. In the past 5-year period, ZIM has increased its dividend 2 times, and its payout has advanced 142%. Check ZIM Integrated Shipping Services’ dividend history here.
ZIM Integrated Shipping Services Ltd. Dividend Yield (TTM)
ZIM Integrated Shipping Services Ltd. dividend-yield-ttm | ZIM Integrated Shipping Services Ltd. Quote
ZIM’s expected earnings growth rate for the current year is 6.9%. Currently, ZIM has a Zacks Rank #2.
Diana Shipping is a global provider of shipping transportation services.
Diana Shipping has a dividend yield of 22.8%. In the past 5-year period, DSX has increased its dividend 3 times, and its payout has advanced 101%. Check Diana Shipping’s dividend history here.
Diana Shipping inc. Dividend Yield (TTM)
Diana Shipping inc. dividend-yield-ttm | Diana Shipping inc. Quote
DSX’s expected earnings growth rate for the current year is 265.1%. Currently, DSX has a Zacks Rank #2.
Black Stone Minerals is the owner of oil and natural gas mineral primarily in the United States.
Black Stone Minerals has a dividend yield of 11.8%. In the past 5-year period, BSM has increased its dividend 8 times, and its payout has advanced 93%. Check Black Stone Minerals’ dividend history here.
Black Stone Minerals, L.P. Dividend Yield (TTM)
Black Stone Minerals, L.P. dividend-yield-ttm | Black Stone Minerals, L.P. Quote
BSM’s expected earnings growth rate for the current year is 80.7%. Currently, BSM has a Zacks Rank #1.
ICL Group is engaged in the fertilizer and specialty chemical sectors.
ICL Group has a dividend yield of 10%. In the past 5-year period, ICL has increased its dividend 7 times, and its payout has advanced 39%. Check ICL Group’s dividend history here.
ICL Group Ltd. Dividend Yield (TTM)
ICL Group Ltd. dividend-yield-ttm | ICL Group Ltd. Quote
ICL’s expected earnings growth rate for the current year is 200%. Currently, ICL has a Zacks Rank #1.