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Best Dividend Stocks to Buy Now According to the Zacks Rank
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In September, prices for a wide range of goods and services increased more than expected as inflationary pressure continued to adversely impact the U.S. economy. Per the Bureau of Labor Statistics, the consumer price index (CPI) advanced 0.4% in September, more than the Dow Jones’ estimate of an increase of 0.3%.
It’s true that on a year-over-year basis, inflation increased by 8.2%, which is less than the peak of around 9% achieved in June. However, it continues to hover close to the highest levels since the 1980s.
Meanwhile, the core CPI that eliminates volatile food and energy prices increased 0.6% last month, more than the 0.4% Dow Jones projection. To make matters worse, the core CPI accelerated 6.6% last month compared to the year-ago period, its biggest 12-month jump since Aug 1982. But it’s not just the CPI data, the monthly rate for the producer price index (PPI) was up 0.4% in September, while the monthly core PPI was also up 0.4% last month.
No doubt, such hotter-than-expected inflation data have raised concerns that the Federal Reserve would further tighten its monetary policy to curb the stubborn increase in prices of essential goods and services. The Fed is widely expected to continue its hawkish stance until the inflation rate drops to its target of 2%.
By the way, fed fund futures traders now expect that there is a 38.8% chance that the interest rate will jump to a range of 5% to 5.25% by March, up from the present level of 3% to 3.25%.
However, more aggressive rate hikes by the Fed could easily steer the U.S. economy into a recession. This is because a rate hike always leads to an increase in the cost of borrowing, curtails consumer spending, derails economic growth, and eventually rattles the stock market.
Given such uncertainty, an astute investor should invest in dividend-paying stocks like The Bank of Princeton (BPRN - Free Report) , The Buckle (BKE - Free Report) , Conagra Brands (CAG - Free Report) , First Merchants (FRME - Free Report) and Ameren (AEE - Free Report) for a steady stream of income. These stocks are known to have a sound business model, which protects them from market gyrations. At present, these stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and offer high yields. You can see the complete list of today’s Zacks Rank #1 stocks here.
Bank of Princeton is a community bank that provides banking products and services. Bank of Princeton has a dividend yield of 3.37%. In the past 5-year period, BPRN has increased its dividend four times, and its payout has advanced 87%. Check Bank of Princeton’s dividend history here.
BPRN’s expected earnings growth rate for the current year is 18.5%. Currently, BPRN has a Zacks Rank #1.
Buckle is a leading retailer of medium to better-priced casual apparel, footwear and accessories for fashion-conscious young men and women. Buckle has a dividend yield of 4.1%. In the past 5-year period, BKE has increased its dividend five times, and its payout has advanced 9.2%. Check Buckle’s dividend history here.
BKE’s expected earnings growth rate for the current year is 4.5%. Currently, BKE has a Zacks Rank #2.
Conagra Brands is one of the leading branded food companies in North America. Conagra Brands has a dividend yield of 3.85%. In the past 5-year period, CAG has increased its dividend three times, and its payout has advanced 11.2%. Check Conagra Brands’ dividend history here.
CAG’s expected earnings growth rate for the current year is 3%. Currently, CAG has a Zacks Rank #2.
First Merchants is a bank holding company engaged in conducting commercial banking business through the offices of its banking subsidiaries. First Merchants has a dividend yield of 3.05%. In the past 5-year period, FRME has increased its dividend four times, and its payout has advanced almost 10.8%. Check First Merchants’ dividend history here.
FRME’s expected earnings growth rate for the current year is 2.1%. Currently, FRME has a Zacks Rank #2.
Ameren is a utility company, which generates and distributes electricity and natural gas to residential, commercial, industrial and wholesale end markets in Missouri and Illinois. Ameren has a dividend yield of 3.1%. In the past 5-year period, AEE has increased its dividend six times, and its payout has advanced 6.1%. Check Ameren’s dividend history here.
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Best Dividend Stocks to Buy Now According to the Zacks Rank
In September, prices for a wide range of goods and services increased more than expected as inflationary pressure continued to adversely impact the U.S. economy. Per the Bureau of Labor Statistics, the consumer price index (CPI) advanced 0.4% in September, more than the Dow Jones’ estimate of an increase of 0.3%.
It’s true that on a year-over-year basis, inflation increased by 8.2%, which is less than the peak of around 9% achieved in June. However, it continues to hover close to the highest levels since the 1980s.
Meanwhile, the core CPI that eliminates volatile food and energy prices increased 0.6% last month, more than the 0.4% Dow Jones projection. To make matters worse, the core CPI accelerated 6.6% last month compared to the year-ago period, its biggest 12-month jump since Aug 1982. But it’s not just the CPI data, the monthly rate for the producer price index (PPI) was up 0.4% in September, while the monthly core PPI was also up 0.4% last month.
No doubt, such hotter-than-expected inflation data have raised concerns that the Federal Reserve would further tighten its monetary policy to curb the stubborn increase in prices of essential goods and services. The Fed is widely expected to continue its hawkish stance until the inflation rate drops to its target of 2%.
By the way, fed fund futures traders now expect that there is a 38.8% chance that the interest rate will jump to a range of 5% to 5.25% by March, up from the present level of 3% to 3.25%.
However, more aggressive rate hikes by the Fed could easily steer the U.S. economy into a recession. This is because a rate hike always leads to an increase in the cost of borrowing, curtails consumer spending, derails economic growth, and eventually rattles the stock market.
Given such uncertainty, an astute investor should invest in dividend-paying stocks like The Bank of Princeton (BPRN - Free Report) , The Buckle (BKE - Free Report) , Conagra Brands (CAG - Free Report) , First Merchants (FRME - Free Report) and Ameren (AEE - Free Report) for a steady stream of income. These stocks are known to have a sound business model, which protects them from market gyrations. At present, these stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and offer high yields. You can see the complete list of today’s Zacks Rank #1 stocks here.
Bank of Princeton is a community bank that provides banking products and services. Bank of Princeton has a dividend yield of 3.37%. In the past 5-year period, BPRN has increased its dividend four times, and its payout has advanced 87%. Check Bank of Princeton’s dividend history here.
The Bank of Princeton Dividend Yield (TTM)
The Bank of Princeton dividend-yield-ttm | The Bank of Princeton Quote
BPRN’s expected earnings growth rate for the current year is 18.5%. Currently, BPRN has a Zacks Rank #1.
Buckle is a leading retailer of medium to better-priced casual apparel, footwear and accessories for fashion-conscious young men and women. Buckle has a dividend yield of 4.1%. In the past 5-year period, BKE has increased its dividend five times, and its payout has advanced 9.2%. Check Buckle’s dividend history here.
Buckle, Inc. The Dividend Yield (TTM)
Buckle, Inc. The dividend-yield-ttm | Buckle, Inc. The Quote
BKE’s expected earnings growth rate for the current year is 4.5%. Currently, BKE has a Zacks Rank #2.
Conagra Brands is one of the leading branded food companies in North America. Conagra Brands has a dividend yield of 3.85%. In the past 5-year period, CAG has increased its dividend three times, and its payout has advanced 11.2%. Check Conagra Brands’ dividend history here.
Conagra Brands Dividend Yield (TTM)
Conagra Brands dividend-yield-ttm | Conagra Brands Quote
CAG’s expected earnings growth rate for the current year is 3%. Currently, CAG has a Zacks Rank #2.
First Merchants is a bank holding company engaged in conducting commercial banking business through the offices of its banking subsidiaries. First Merchants has a dividend yield of 3.05%. In the past 5-year period, FRME has increased its dividend four times, and its payout has advanced almost 10.8%. Check First Merchants’ dividend history here.
First Merchants Corporation Dividend Yield (TTM)
First Merchants Corporation dividend-yield-ttm | First Merchants Corporation Quote
FRME’s expected earnings growth rate for the current year is 2.1%. Currently, FRME has a Zacks Rank #2.
Ameren is a utility company, which generates and distributes electricity and natural gas to residential, commercial, industrial and wholesale end markets in Missouri and Illinois. Ameren has a dividend yield of 3.1%. In the past 5-year period, AEE has increased its dividend six times, and its payout has advanced 6.1%. Check Ameren’s dividend history here.
Ameren Corporation Dividend Yield (TTM)
Ameren Corporation dividend-yield-ttm | Ameren Corporation Quote
AEE’s expected earnings growth rate for the current year is 6.5%. Currently, AEE has a Zacks Rank #2.