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Watch These 4 Stocks That Recently Announced Dividend Hikes
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Markets have remained volatile in October after suffering one of the worst months of September in decades. Although stocks have been rebounding since the end of last week, following a positive start to the earnings season, market participants remain concerned about Fed’s stance to continue with its aggressive rate hike policy.
In fact, the bond yield has lately been rising to hit record highs once again on fears of another steep interest rate hike in November. Moreover, the crisis is nowhere close to being over. The Fed has indicated further rate hikes in the coming months till sky-high commodity prices don’t cool off to the desired levels.
Wall Street Volatile
After a disappointing September, volatility is persisting in October. On Oct 19, the 10-year Treasury yield jumped to 4.136%, its highest level since June 2008, while the 2-year Treasury yield rose to its highest level since 2007 on fears of another 75-basis point interest rate hike in November.
The Fed has been aggressively hiking interest rate to get a tight grip on soaring inflation. The consumer price index (CPI) for September came in higher than expected, rising 0.4% compared to the consensus estimate of a rise of 0.2%. On a year-over-year basis, CPI jumped 8.2% in September.
Core CPI, which excludes volatile food and energy prices, rose 0.6% in September on a month-over-month basis, surpassing analysts’ expectations of a 0.3% rise. Year over year, core CPI jumped 6.6% in September.
Investors are concerned that higher inflation will compel the Fed to go ahead with its aggressive rate-hike policy. The Fed has so far hiked interest rates by 300 basis points this year, including a 75-basis-point hike on the past three occasions.
In fact, the Fed has also indicated that it will hike interest rates by another 125 basis points by the year-end. Market participants are now bracing for another 75-basis-point hike in November. A further interest rate hike is likely to create more pressure on the economy, which has been worrying both economists and investors.
Higher interest rates mean a higher cost of borrowing. This increases the possibility of an economic downturn. Both are negative signs for markets, which have been experiencing volatility all through this year.
Stocks to Watch
Given this situation, investors should exercise caution and continue holding dividend-paying stocks to protect their portfolios. We think it's a good idea to consider stocks that have recently hiked their dividend payouts. Four such companies are: Prosperity Bancshares, Inc. (PB - Free Report) , Brown & Brown, Inc. (BRO - Free Report) , SL Green Realty Corp. (SLG - Free Report) and S&T Bancorp, Inc. (STBA - Free Report) .
Prosperity Bancshares, Inc. provides a wide range of financial products and services — traditional loan and deposit products — to small and medium-sized businesses and consumers. Apart from these, PB provides digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
On Oct 19, 2022, Prosperity Bancshares announced that its shareholders would receive a dividend of $0.55 per share on Jan 3, 2023. PB has a dividend yield of 2.81%. Over the past 5 years, Prosperity Bancshares has increased its dividend six times, and its payout ratio is presently 38% of earnings. Check PB’s dividend history here.
Brown & Brown, Inc. markets and sells insurance products and services primarily in the United States, as well as in London, Bermuda, and the Cayman Islands. BRO reports through four segments: Retail, National Programs, Wholesale Brokerage and Services. BRO carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Oct 18, 2022, Brown & Brown announced that its shareholders would receive a dividend of $0.12 per share on Nov 16, 2022. BRO has a dividend yield of 0.65%. Over the past 5 years, Brown & Brown has increased its dividend six times, and its payout ratio is presently 18% of earnings. Check BRO’s dividend history here.
SL Green Realty Corp. dominates the office real estate market of New York. SLG was founded in 1997 and primarily acquires, manages, develops and leases commercial (mainly office) and residential real estate properties in the New York Metropolitan area, especially midtown Manhattan.
On Oct 19, 2022, SL Green Realtydeclared that its shareholders would receive a dividend of $0.31 per share on Nov 15, 2022. SLG has a dividend yield of 10.02%. Over the past 5 years, SL Green Realtyhas increased its dividend five times, and its payout ratio is presently 54% of earnings. Check SLG’s dividend history here.
S&T Bancorp, Inc. is a bank holding company engaged in general banking business. STBA is a full service bank with its main office in Indiana and Pennsylvania, providing service to its customers through a branch of 34 offices located in Armstrong, Allegheny, Indiana, Jefferson, Clearfield and Westmoreland counties.
On Oct 17, 2022, S&T Bancorp declared that its shareholders would receive a dividend of $0.31 per share on Nov 17, 2022. STBA has a dividend yield of 3.69%. Over the past 5 years, S&T Bancorp has increased its dividend seven times, and its payout ratio is presently 43% of earnings. Check STBA’s dividend history here.
Image: Bigstock
Watch These 4 Stocks That Recently Announced Dividend Hikes
Markets have remained volatile in October after suffering one of the worst months of September in decades. Although stocks have been rebounding since the end of last week, following a positive start to the earnings season, market participants remain concerned about Fed’s stance to continue with its aggressive rate hike policy.
In fact, the bond yield has lately been rising to hit record highs once again on fears of another steep interest rate hike in November. Moreover, the crisis is nowhere close to being over. The Fed has indicated further rate hikes in the coming months till sky-high commodity prices don’t cool off to the desired levels.
Wall Street Volatile
After a disappointing September, volatility is persisting in October. On Oct 19, the 10-year Treasury yield jumped to 4.136%, its highest level since June 2008, while the 2-year Treasury yield rose to its highest level since 2007 on fears of another 75-basis point interest rate hike in November.
The Fed has been aggressively hiking interest rate to get a tight grip on soaring inflation. The consumer price index (CPI) for September came in higher than expected, rising 0.4% compared to the consensus estimate of a rise of 0.2%. On a year-over-year basis, CPI jumped 8.2% in September.
Core CPI, which excludes volatile food and energy prices, rose 0.6% in September on a month-over-month basis, surpassing analysts’ expectations of a 0.3% rise. Year over year, core CPI jumped 6.6% in September.
Investors are concerned that higher inflation will compel the Fed to go ahead with its aggressive rate-hike policy. The Fed has so far hiked interest rates by 300 basis points this year, including a 75-basis-point hike on the past three occasions.
In fact, the Fed has also indicated that it will hike interest rates by another 125 basis points by the year-end. Market participants are now bracing for another 75-basis-point hike in November. A further interest rate hike is likely to create more pressure on the economy, which has been worrying both economists and investors.
Higher interest rates mean a higher cost of borrowing. This increases the possibility of an economic downturn. Both are negative signs for markets, which have been experiencing volatility all through this year.
Stocks to Watch
Given this situation, investors should exercise caution and continue holding dividend-paying stocks to protect their portfolios. We think it's a good idea to consider stocks that have recently hiked their dividend payouts. Four such companies are: Prosperity Bancshares, Inc. (PB - Free Report) , Brown & Brown, Inc. (BRO - Free Report) , SL Green Realty Corp. (SLG - Free Report) and S&T Bancorp, Inc. (STBA - Free Report) .
Prosperity Bancshares, Inc. provides a wide range of financial products and services — traditional loan and deposit products — to small and medium-sized businesses and consumers. Apart from these, PB provides digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management.
On Oct 19, 2022, Prosperity Bancshares announced that its shareholders would receive a dividend of $0.55 per share on Jan 3, 2023. PB has a dividend yield of 2.81%. Over the past 5 years, Prosperity Bancshares has increased its dividend six times, and its payout ratio is presently 38% of earnings. Check PB’s dividend history here.
Prosperity Bancshares, Inc. Dividend Yield (TTM)
Prosperity Bancshares, Inc. dividend-yield-ttm | Prosperity Bancshares, Inc. Quote
Brown & Brown, Inc. markets and sells insurance products and services primarily in the United States, as well as in London, Bermuda, and the Cayman Islands. BRO reports through four segments: Retail, National Programs, Wholesale Brokerage and Services. BRO carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Oct 18, 2022, Brown & Brown announced that its shareholders would receive a dividend of $0.12 per share on Nov 16, 2022. BRO has a dividend yield of 0.65%. Over the past 5 years, Brown & Brown has increased its dividend six times, and its payout ratio is presently 18% of earnings. Check BRO’s dividend history here.
Brown & Brown, Inc. Dividend Yield (TTM)
Brown & Brown, Inc. dividend-yield-ttm | Brown & Brown, Inc. Quote
SL Green Realty Corp. dominates the office real estate market of New York. SLG was founded in 1997 and primarily acquires, manages, develops and leases commercial (mainly office) and residential real estate properties in the New York Metropolitan area, especially midtown Manhattan.
On Oct 19, 2022, SL Green Realtydeclared that its shareholders would receive a dividend of $0.31 per share on Nov 15, 2022. SLG has a dividend yield of 10.02%. Over the past 5 years, SL Green Realtyhas increased its dividend five times, and its payout ratio is presently 54% of earnings. Check SLG’s dividend history here.
SL Green Realty Corporation Dividend Yield (TTM)
SL Green Realty Corporation dividend-yield-ttm | SL Green Realty Corporation Quote
S&T Bancorp, Inc. is a bank holding company engaged in general banking business. STBA is a full service bank with its main office in Indiana and Pennsylvania, providing service to its customers through a branch of 34 offices located in Armstrong, Allegheny, Indiana, Jefferson, Clearfield and Westmoreland counties.
On Oct 17, 2022, S&T Bancorp declared that its shareholders would receive a dividend of $0.31 per share on Nov 17, 2022. STBA has a dividend yield of 3.69%. Over the past 5 years, S&T Bancorp has increased its dividend seven times, and its payout ratio is presently 43% of earnings. Check STBA’s dividend history here.
S&T Bancorp, Inc. Dividend Yield (TTM)
S&T Bancorp, Inc. dividend-yield-ttm | S&T Bancorp, Inc. Quote