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5 Stocks to Watch on Dividend Hikes Amid Spiking Inflation Rates
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The U.S. investor sentiment got hit after Consumer Price Index, which is the most accepted gauge for inflation, rose 0.5% for the month of January, after increasing 0.1% in December. The CPI was up 6.4% from the same period in 2022, mostly due to an increase in the prices of shelter, food and energy price. The Dow, the S&P 500, and the Nasdaq have already posted a negative return of 2.31%, 7.32%, and 14.54% over the past year.
Domestic inflation, which poses a serious threat to the economy, has shown signs of receding in recent months after the Federal Reserve’s aggressive rate hike stance to dry out liquidity from the market. The Fed is now more focused on services inflation, in particular labor prices, with average hourly earnings up 10 cents to $33.03. More than half a million jobs were added in January despite high inflation, rising interest rates and weakening economy prospects. Retail sales in the said period grew at 3.0%, which is the maximum in two years despite higher borrowing costs. It seems getting control over inflation is more complex than what markets had anticipated. The Fed is expected to continue with its hawkish stance in order to tame inflation to achieve a disinflation trend. The fear of recession, which subsided for a while, seems to have returned as further rate hikes will not bode well for financial markets.
Further geopolitical tensions in the east continue to remain a serious threat to the global energy market and supply chain distribution. Thus, investors seeking regular income and looking to preserve capital in such an unstable condition 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 an economic crisis.
Companies, which tend to reward investors with a high dividend payout, comparatively outperform non-dividend-paying stocks during market volatility. Investors can expect a regular flow of income in volatile market conditions.
On that note, let us look at companies like Banco Bilbao Viscaya Argentaria (BBVA - Free Report) , Westinghouse Air Brake Technologies (WAB - Free Report) , Middlefield Banc (MBCN - Free Report) , Analog Devices (ADI - Free Report) and Avient (AVNT - Free Report) that have lately hiked their dividend payments.
Banco Bilbao Viscaya Argentaria is a Bilbao, Spain-based company. This Zacks Rank #1 (Strong Buy) company provides retail banking, wholesale banking, and asset management services in Spain, Mexico, South America, the United States, Turkey, Asia, and the rest of Europe
Westinghouse Air Brake Technologies is a Pittsburgh, PA-based company. This Zacks Rank #3 (Hold) company provides technology-based equipment, systems, and services for the freight rail and passenger transit industries worldwide.
On Feb 14, WAB declared that its shareholders would receive a dividend of 17 cents a share on Mar 10, 2023. WAB has a dividend yield of 0.58%.
Middlefield Banc is a Middlefield, OH-based company. This Zacks Rank #3 company provides various commercial banking services to small and medium-sized businesses, professionals, small business owners, and retail customers in northeastern and central Ohio.
On Feb 14, MBCN declared that its shareholders would receive a dividend of 20 cents a share on Mar 15, 2023. MBCN has a dividend yield of 2.81%.
Analog Devices is a Wilmington, MA-based company. This Zacks Rank #3 company designs, manufactures, tests, and markets integrated circuits (IC), software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies.
On Jan 14, ADI declared that its shareholders would receive a dividend of 86 cents a share on Mar 8, 2023. ADI has a dividend yield of 1.67%.
In the past five-year period, ADI has increased its dividend five times. Its payout ratio at present sits at 32% of earnings. Check Analog Device’s dividend history.
Avient is an Avon Lake, OH-based company. This Zacks Rank #3 company provides specialized formulator, services, and sustainable material solutions in the United States, Canada, Mexico, Europe, South America, and Asia.
On Feb 13, AVNT announced that its shareholders would receive a dividend of 25 cents a share on Apr 6, 2023. AVNT has a dividend yield of 2.56%.
Over the past five years, AVNT has increased its dividend five times. Its payout ratio now sits at 30% of earnings. Check Avient’s dividend history here.
Image: Bigstock
5 Stocks to Watch on Dividend Hikes Amid Spiking Inflation Rates
The U.S. investor sentiment got hit after Consumer Price Index, which is the most accepted gauge for inflation, rose 0.5% for the month of January, after increasing 0.1% in December. The CPI was up 6.4% from the same period in 2022, mostly due to an increase in the prices of shelter, food and energy price. The Dow, the S&P 500, and the Nasdaq have already posted a negative return of 2.31%, 7.32%, and 14.54% over the past year.
Domestic inflation, which poses a serious threat to the economy, has shown signs of receding in recent months after the Federal Reserve’s aggressive rate hike stance to dry out liquidity from the market. The Fed is now more focused on services inflation, in particular labor prices, with average hourly earnings up 10 cents to $33.03. More than half a million jobs were added in January despite high inflation, rising interest rates and weakening economy prospects. Retail sales in the said period grew at 3.0%, which is the maximum in two years despite higher borrowing costs. It seems getting control over inflation is more complex than what markets had anticipated. The Fed is expected to continue with its hawkish stance in order to tame inflation to achieve a disinflation trend. The fear of recession, which subsided for a while, seems to have returned as further rate hikes will not bode well for financial markets.
Further geopolitical tensions in the east continue to remain a serious threat to the global energy market and supply chain distribution. Thus, investors seeking regular income and looking to preserve capital in such an unstable condition 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 an economic crisis.
Companies, which tend to reward investors with a high dividend payout, comparatively outperform non-dividend-paying stocks during market volatility. Investors can expect a regular flow of income in volatile market conditions.
On that note, let us look at companies like Banco Bilbao Viscaya Argentaria (BBVA - Free Report) , Westinghouse Air Brake Technologies (WAB - Free Report) , Middlefield Banc (MBCN - Free Report) , Analog Devices (ADI - Free Report) and Avient (AVNT - Free Report) that have lately hiked their dividend payments.
Banco Bilbao Viscaya Argentaria is a Bilbao, Spain-based company. This Zacks Rank #1 (Strong Buy) company provides retail banking, wholesale banking, and asset management services in Spain, Mexico, South America, the United States, Turkey, Asia, and the rest of Europe
You can see the complete list of today’s Zacks #1 Rank stocks here.
On Feb 14, 2023, BBVA declared that its shareholders would receive a dividend of 27 cents a share on Apr 20, 2023. BBVA has a dividend yield of 2.55%.
Over the past five years, BBVA has increased its dividend four times and its payout ratio at present sits at 17% of earnings. Check Banco Bilbao Viscaya Argentaria’s dividend history here.
Banco Bilbao Viscaya Argentaria S.A. Dividend Yield (TTM)
Banco Bilbao Viscaya Argentaria S.A. dividend-yield-ttm | Banco Bilbao Viscaya Argentaria S.A. Quote
Westinghouse Air Brake Technologies is a Pittsburgh, PA-based company. This Zacks Rank #3 (Hold) company provides technology-based equipment, systems, and services for the freight rail and passenger transit industries worldwide.
On Feb 14, WAB declared that its shareholders would receive a dividend of 17 cents a share on Mar 10, 2023. WAB has a dividend yield of 0.58%.
Over the past five years, WAB has increased its dividend once and its payout ratio presently sits at 13% of earnings. Check Westinghouse Air Brake Technologies’ dividend history here.
Westinghouse Air Brake Technologies Corporation Dividend Yield (TTM)
Westinghouse Air Brake Technologies Corporation dividend-yield-ttm | Westinghouse Air Brake Technologies Corporation Quote
Middlefield Banc is a Middlefield, OH-based company. This Zacks Rank #3 company provides various commercial banking services to small and medium-sized businesses, professionals, small business owners, and retail customers in northeastern and central Ohio.
On Feb 14, MBCN declared that its shareholders would receive a dividend of 20 cents a share on Mar 15, 2023. MBCN has a dividend yield of 2.81%.
Over the past five years, MBCN has increased its dividend five times and its payout ratio presently sits at 28% of earnings. Check Middlefield Banc’s dividend history here.
Middlefield Banc Corp. Dividend Yield (TTM)
Middlefield Banc Corp. dividend-yield-ttm | Middlefield Banc Corp. Quote
Analog Devices is a Wilmington, MA-based company. This Zacks Rank #3 company designs, manufactures, tests, and markets integrated circuits (IC), software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies.
On Jan 14, ADI declared that its shareholders would receive a dividend of 86 cents a share on Mar 8, 2023. ADI has a dividend yield of 1.67%.
In the past five-year period, ADI has increased its dividend five times. Its payout ratio at present sits at 32% of earnings. Check Analog Device’s dividend history.
Analog Devices, Inc. Dividend Yield (TTM)
Analog Devices, Inc. dividend-yield-ttm | Analog Devices, Inc. Quote
Avient is an Avon Lake, OH-based company. This Zacks Rank #3 company provides specialized formulator, services, and sustainable material solutions in the United States, Canada, Mexico, Europe, South America, and Asia.
On Feb 13, AVNT announced that its shareholders would receive a dividend of 25 cents a share on Apr 6, 2023. AVNT has a dividend yield of 2.56%.
Over the past five years, AVNT has increased its dividend five times. Its payout ratio now sits at 30% of earnings. Check Avient’s dividend history here.
Avient Corporation Dividend Yield (TTM)
Avient Corporation dividend-yield-ttm | Avient Corporation Quote