We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Stocks With Recent Dividend Hike to Avert Rate Hike Fears
Read MoreHide Full Article
On Jun 14, in his post-FOMC meeting statement, Fed Chairman Jerome Powell said that the central bank has decided to keep the Fed fund rate unchanged at the existing 5-5.25%. The June FOMC marked the first pause of the current interest rate hike cycle after 10 consecutive FOMC meetings.
However, Powell also mentioned that more rate hikes are likely this year. The Fed’s current “dot-plot” shows that the mean expectation of officials is for another 50-basis point raise in the benchmark interest rate. This implies, two more rate hikes of 25 basis points each within 2023.
The terminal interest rate is at present 5.6%, instead of 5.125%, anticipated after the May FOMC meeting. No rate cut is expected this year. The first cut in interest rate may be delayed till 2025. Majority of market participants were expecting the first rate cut in 2024.
U.S. stock markets may remain volatile for the rest of this year following the central bank’s indication that the higher rate regime is not yet over. Mid-sized banks have already seen the burden of higher interest rates. The housing sector is likely to become more volatile.
Several key economic metrics like retail sales, manufacturing PMI, services PMI and industrial production have been declining steadily in 2023. A large section of economists and financial researchers have warned of a recession later this year.
Stocks in Focus
At this stage, dividend-paying stocks should be in demand as investors try to safeguard their portfolios. We believe that one should consider stocks that have recently raised their dividend payments. Five such companies are - Caterpillar Inc. (CAT - Free Report) , Banco Bradesco S.A. (BBD - Free Report) , Itaú Unibanco Holding S.A. (ITUB - Free Report) , W. R. Berkley Corp. (WRB - Free Report) and Host Hotels & Resorts Inc. (HST - Free Report) .
Caterpillar has seen year-over-year revenue and earnings growth for nine straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of supply chain snarls and cost pressures. We expect the company’s adjusted earnings per share for 2023 to grow 19% and revenues to rise 7%.
The Construction Industries segment of CAT is expected to benefit from rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment. A strong liquidity position, investments in expanding services and digital initiatives should help CAT deliver outsized returns. Caterpillar currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On Jun 14, 2023, Caterpillar declared that its shareholders would receive a dividend of $1.30 per share on Aug 18, 2023. It has a dividend yield of 2.1%. Over the past five years, CAT has increased its dividend four times, and its payout ratio presently stays at 30% of earnings. Check CAT’s dividend history here.
Banco Bradesco provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. BBD operates through two segments, Banking and Insurance. BBD provides current, savings, and salary accounts, real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal and installment credit, debit and business cards, financial and security services.
BBD also offers consortium products, auto, personal accident, dental, travel, and life insurance, investment products; pension products, real estate and vehicle auctions; cash management, and foreign trade and exchange services, capitalization bonds, and internet banking services. Banco Bradesco currently carries a Zacks Rank #3 (Hold).
On Jun 14, 2023, Banco Bradesco declared that its shareholders would receive a dividend of $0.0039 per share on Aug 8, 2023. It has a dividend yield of 4.7%. Over the past five years, BBD has increased its dividend 32 times, and its payout ratio presently stays at 11% of earnings. Check BBD’s dividend history here.
Itau Unibanco has been benefiting from a strong network franchise and electronic distribution channels. A strong funding base helps ITUB to maintain a healthy credit portfolio. Itau Unibanco has been diversifying loan composition for a while, focusing on the origination of products, lower risks, and more guarantees. ITUB is focused on building strategies to expand operations in Brazil and abroad. Itau Unibanco currently carries a Zacks Rank #3.
On Jun 8, 2023, Itau Unibanco declared that its shareholders would receive a dividend of $0.04 per share on Sep 5, 2023. It has a dividend yield of 0.6%. Over the past five years, ITUB has increased its dividend 27 times, and its payout ratio presently stays at 31% of earnings. Check ITUB’s dividend history here.
W. R. Berkley has been benefiting from its insurance business, performing well on the increase in premiums written over the past many years. WRB has been investing in numerous startups since 2006 and has established new units in growing international markets.
WRB’s international business is poised for growth supported by emerging markets. WRB’s solid capital position enables capital deployment. Investment in alternative assets should help improve investment income going forward. W. R. Berkley currently carries a Zacks Rank #3.
On Jun 14, 2023, W. R. Berkley declared that its shareholders would receive a dividend of $0.11 per share on Jun 30, 2023. It has a dividend yield of 0.8%. Over the past five years, WRB has increased its dividend eight times, and its payout ratio presently stays at 9% of earnings. Check WRB’s dividend history here.
Host Hotels & Resorts has a portfolio of luxury and upper-upscale hotels that is well-poised to benefit from its presence in the lucrative Sunbelt region and the top U.S. markets, with strong demand. Solid leisure travel demand for HST’s properties in the Sunbelt and Hawaii regions has been aiding its performance in recent quarters.
HST’s strategic buyouts, capital-recycling efforts and solid balance sheet bode well. Amid these tailwinds, we expect 2023 total revenues to grow 4.1% year over year. Host Hotels & Resorts currently carries a Zacks Rank #3.
On Jun 14, 2023, Host Hotels & Resorts declared that its shareholders would receive a dividend of $0.15 per share on Jul 17, 2023. It has a dividend yield of 3.4%. Over the past five years, HST has increased its dividend five times, and its payout ratio presently stays at 25% of earnings. Check HST’s dividend history here.
Image: Bigstock
5 Stocks With Recent Dividend Hike to Avert Rate Hike Fears
On Jun 14, in his post-FOMC meeting statement, Fed Chairman Jerome Powell said that the central bank has decided to keep the Fed fund rate unchanged at the existing 5-5.25%. The June FOMC marked the first pause of the current interest rate hike cycle after 10 consecutive FOMC meetings.
However, Powell also mentioned that more rate hikes are likely this year. The Fed’s current “dot-plot” shows that the mean expectation of officials is for another 50-basis point raise in the benchmark interest rate. This implies, two more rate hikes of 25 basis points each within 2023.
The terminal interest rate is at present 5.6%, instead of 5.125%, anticipated after the May FOMC meeting. No rate cut is expected this year. The first cut in interest rate may be delayed till 2025. Majority of market participants were expecting the first rate cut in 2024.
U.S. stock markets may remain volatile for the rest of this year following the central bank’s indication that the higher rate regime is not yet over. Mid-sized banks have already seen the burden of higher interest rates. The housing sector is likely to become more volatile.
Several key economic metrics like retail sales, manufacturing PMI, services PMI and industrial production have been declining steadily in 2023. A large section of economists and financial researchers have warned of a recession later this year.
Stocks in Focus
At this stage, dividend-paying stocks should be in demand as investors try to safeguard their portfolios. We believe that one should consider stocks that have recently raised their dividend payments. Five such companies are - Caterpillar Inc. (CAT - Free Report) , Banco Bradesco S.A. (BBD - Free Report) , Itaú Unibanco Holding S.A. (ITUB - Free Report) , W. R. Berkley Corp. (WRB - Free Report) and Host Hotels & Resorts Inc. (HST - Free Report) .
Caterpillar has seen year-over-year revenue and earnings growth for nine straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of supply chain snarls and cost pressures. We expect the company’s adjusted earnings per share for 2023 to grow 19% and revenues to rise 7%.
The Construction Industries segment of CAT is expected to benefit from rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment. A strong liquidity position, investments in expanding services and digital initiatives should help CAT deliver outsized returns. Caterpillar currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On Jun 14, 2023, Caterpillar declared that its shareholders would receive a dividend of $1.30 per share on Aug 18, 2023. It has a dividend yield of 2.1%. Over the past five years, CAT has increased its dividend four times, and its payout ratio presently stays at 30% of earnings. Check CAT’s dividend history here.
Caterpillar Inc. Dividend Yield (TTM)
Caterpillar Inc. dividend-yield-ttm | Caterpillar Inc. Quote
Banco Bradesco provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. BBD operates through two segments, Banking and Insurance. BBD provides current, savings, and salary accounts, real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal and installment credit, debit and business cards, financial and security services.
BBD also offers consortium products, auto, personal accident, dental, travel, and life insurance, investment products; pension products, real estate and vehicle auctions; cash management, and foreign trade and exchange services, capitalization bonds, and internet banking services. Banco Bradesco currently carries a Zacks Rank #3 (Hold).
On Jun 14, 2023, Banco Bradesco declared that its shareholders would receive a dividend of $0.0039 per share on Aug 8, 2023. It has a dividend yield of 4.7%. Over the past five years, BBD has increased its dividend 32 times, and its payout ratio presently stays at 11% of earnings. Check BBD’s dividend history here.
Banco Bradesco SA Dividend Yield (TTM)
Banco Bradesco SA dividend-yield-ttm | Banco Bradesco SA Quote
Itau Unibanco has been benefiting from a strong network franchise and electronic distribution channels. A strong funding base helps ITUB to maintain a healthy credit portfolio. Itau Unibanco has been diversifying loan composition for a while, focusing on the origination of products, lower risks, and more guarantees. ITUB is focused on building strategies to expand operations in Brazil and abroad. Itau Unibanco currently carries a Zacks Rank #3.
On Jun 8, 2023, Itau Unibanco declared that its shareholders would receive a dividend of $0.04 per share on Sep 5, 2023. It has a dividend yield of 0.6%. Over the past five years, ITUB has increased its dividend 27 times, and its payout ratio presently stays at 31% of earnings. Check ITUB’s dividend history here.
Itau Unibanco Holding S.A. Dividend Yield (TTM)
Itau Unibanco Holding S.A. dividend-yield-ttm | Itau Unibanco Holding S.A. Quote
W. R. Berkley has been benefiting from its insurance business, performing well on the increase in premiums written over the past many years. WRB has been investing in numerous startups since 2006 and has established new units in growing international markets.
WRB’s international business is poised for growth supported by emerging markets. WRB’s solid capital position enables capital deployment. Investment in alternative assets should help improve investment income going forward. W. R. Berkley currently carries a Zacks Rank #3.
On Jun 14, 2023, W. R. Berkley declared that its shareholders would receive a dividend of $0.11 per share on Jun 30, 2023. It has a dividend yield of 0.8%. Over the past five years, WRB has increased its dividend eight times, and its payout ratio presently stays at 9% of earnings. Check WRB’s dividend history here.
W.R. Berkley Corporation Dividend Yield (TTM)
W.R. Berkley Corporation dividend-yield-ttm | W.R. Berkley Corporation Quote
Host Hotels & Resorts has a portfolio of luxury and upper-upscale hotels that is well-poised to benefit from its presence in the lucrative Sunbelt region and the top U.S. markets, with strong demand. Solid leisure travel demand for HST’s properties in the Sunbelt and Hawaii regions has been aiding its performance in recent quarters.
HST’s strategic buyouts, capital-recycling efforts and solid balance sheet bode well. Amid these tailwinds, we expect 2023 total revenues to grow 4.1% year over year. Host Hotels & Resorts currently carries a Zacks Rank #3.
On Jun 14, 2023, Host Hotels & Resorts declared that its shareholders would receive a dividend of $0.15 per share on Jul 17, 2023. It has a dividend yield of 3.4%. Over the past five years, HST has increased its dividend five times, and its payout ratio presently stays at 25% of earnings. Check HST’s dividend history here.
Host Hotels & Resorts, Inc. Dividend Yield (TTM)
Host Hotels & Resorts, Inc. dividend-yield-ttm | Host Hotels & Resorts, Inc. Quote