Wall Street has seen an impressive rally since mid-October. Less-than-expected inflation rates in October with respect to several measures along with a dovish comment from Fed Chairman Jerome Powell in November boosted investors’ confidence in risky assets like equities.

However, hotter-than-expected job additions and a higher wage rate in November once again dampened the mood on Wall Street. Market participants are now unsure whether the Fed will reduce the magnitude of the interest rate hike in the December FOMC meeting, as indicated by Powell, or will hike the rate by 75 basis points for the fifth time in a row.

A tight labor market is being perceived as a pushback from the Fed’s recent stance of trying to reassure the markets that it would slacken its stringent policy measures to avoid a hard-landing of the economy.

Market participants are not sure whether the terminal interest for this round of monetary tightening will stay within the 5% threshold or go beyond that. A section of economists and financial experts are concerned that a higher interest rate will lead to a recession in 2023.

Stocks in Focus

At this stage, dividend-paying stocks should be in demand as investors will try to safeguard their portfolio. We believe that one should consider stocks that have recently raised their dividend payments. Five such companies are Graco Inc. (GGG Quick QuoteGGG - Free Report) , The AES Corp. (AES Quick QuoteAES - Free Report) , Owens Corning (OC Quick QuoteOC - Free Report) , Marriott Vacations Worldwide Corp. (VAC Quick QuoteVAC - Free Report) and La-Z-Boy Inc. (LZB Quick QuoteLZB - Free Report) .

Graco designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. GGG provides valves, pumps, accessories, and meters to dispense and move chemicals, wastewater, oil and natural gas, petroleum, lubricants, food and other fluids.

GGG’s end-markets include service garages, food and beverage, fleet service centers, dairy, pharmaceutical, oil and natural gas, semiconductor, cosmetics, industrial lubrication, electronics, fast oil change facilities, mining, wastewater, automobile dealerships and others. Graco carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On Dec 5, 2022, Graco declared that its shareholders would receive a dividend of $0.2350 per share on Feb 1, 2023. It has a dividend yield of 1.4%. Over the past 5 years, GGG has increased its dividend five times, and its payout ratio presently stays at 33% of earnings. Check GGG’s dividend history here.

The AES is a diversified power generation and utility company, providing affordable, sustainable energy through its diverse portfolio of thermal and renewable generation facilities as well as distribution businesses.

AES’ vision is to be the world's leading sustainable power company by leveraging its unique electricity platforms and the knowledge of its people to provide the energy and infrastructure solutions that its customers truly need.

On Dec 2, 2022, The AES declared that its shareholders would receive a dividend of $0.1659 per share on Feb 15, 2023. It has a dividend yield of 2.3%. Over the past 5 years, AES has increased its dividend five times, and its payout ratio presently stays at 39% of earnings. Check AES’ dividend history here.

Owens is a world leader in building materials systems and composite solutions. OC’s products include glass fiber that is used to support composite materials for transportation, electronics, marine, infrastructure, wind energy and other high-performance markets for insulation as well as roofing for residential, commercial and industrial applications. OC has three reportable segments: Composites, Insulation and Roofing.

On Dec 2, 2022, Owens Corning declared that its shareholders would receive a dividend of $0.52 per share on Jan 19, 2023. It has a dividend yield of 2.3%. Over the past 5 years, OC has increased its dividend six times, and its payout ratio presently stays at 11% of earnings. Check OC’s dividend history here.

Marriott Vacations is a leading global vacation company that offers vacation ownership, exchange, rental, resort and property management services. VAC also has exchange networks and membership programs in a large number of resorts across countries. Marriott Vacations’ business is operated under two major segments: Vacation Ownership and Exchange & Third-Party Management.

On Dec 1, 2022, Marriott Vacations declared that its shareholders would receive a dividend of $0.72 per share on Jan 5, 2023. It has a dividend yield of 1.9%. Over the past 5 years, VAC has increased its dividend five times, and its payout ratio presently stays at 25% of earnings. Check VAC’s dividend history here.

La-Z-Boy manufactures, markets, imports, exports, distributes and retails upholstery furniture products, accessories and casegoods furniture products in the United States, Canada, and internationally. LZB operates through the Upholstery, Casegoods and Retail segments.

On Dec 1, 2022, La-Z-Boy declared that its shareholders would receive a dividend of $0.16 per share on Dec 20, 2022. It has a dividend yield of 2.9%. Over the past 5 years, LZB has increased its dividend six times, and its payout ratio presently stays at 18% of earnings. Check LZB’s dividend history here.