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5 Stocks to Watch on Recent Dividend Hikes Amid Volatility
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Various domestic and geopolitical news have clouded the investment landscape recently. After managing a strong recovery in the first half of 2023 from the previous-year lows, inflation fears and interest rate hikes by the Federal Reserve to counter inflation have impacted investors’ decision. The S&P 500 and the DOW posted a negative return of 0.59% and 1.74%, respectively, in the past three months.
The Consumer Price Index, which is the most accepted gauge for inflation, showed a favorable declining trend till June to 3% year on year in response to the Federal Reserve’s aggressive monetary policy tightening. However, inflation numbers increased to 3.2% year on year in July, and 3.7% in August and September. Fed Chairman Jerome Powell continues to stress on a stable inflation rate of 2% in the long run. To achieve its target, the Fed has keptthe overnight interest rate at 5.25-5.5%, which is the highest in 22 years and has kept the table set for further rate hikes if needed.
Investors are awaiting the upcoming October inflation report, which is expected on Nov 14, 2023. Though inflation is expected to cool off, it will likely be significantly higher than the Fed’s target. Market participants are anticipating another interest rate hike before the end of this year if the current interest rates remain higher for longer to win the inflation battle. The impact of higher cost of borrowing will affect profitability of American corporates. Also, Moody's Investors Services on Nov 11 lowered its outlook on U.S. credit rating to "negative" from “stable," sighting concerns over a very large fiscal deficit, which will significantly weaken debt affordability.
On the international front, escalating tensions in the Middle East due to the incessant war between Israel and the Palestine-based militant group Hamas has disrupted the global supply chain. Such events will impact corporate performance.
Keeping such a critical situation in mind, prudent investors seeking regular income and capital preservation can invest in dividend stocks. These companies, due to their well-established businesses, pay out regular dividends and remain profitable due to their proven business models. Companies that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.
Autoliv is headquartered in Stockholm, Sweden. This Zacks Rank #3 (Hold) company is one of the leading manufacturers and suppliers of a wide range of product offerings, which majorly include passive safety systems. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Nov 9, ALV declared that its shareholders would receive a dividend of 68 cents a share on Dec 13, 2023. ALV has a dividend yield of 2.7%.
Over the past five years, ALV has increased its dividend three times, and its payout ratio presently sits at 42% of earnings. Check Autoliv’s dividend history here.
Assurant is headquartered in Atlanta, GE. This Zacks Rank #2 is a global provider of risk management solutions in the housing and lifestyle markets, protecting where people live and the goods they buy.
On Nov 9, AIZ declared that its shareholders would receive a dividend of 72 cents a share on Dec 18, 2023. AIZ has a dividend yield of 1.7%.
In the past five years, AIZ has increased its dividend six times. Its payout ratio at present sits at 20% of earnings. Check Assurant’s dividend history here.
Lam Research is headquartered in Fremont, CA. This Zacks Rank #3 company is a leading supplier of wafer fabrication equipment and services to the semiconductor industry.
On Nov 9, LRCX declared that its shareholders would receive a dividend of $2 a share on Jan 3, 2024. LRCX has a dividend yield of 1.2%.
F&G Annuities & Life, Inc. is headquartered in Des Moines, IO. This Zacks Rank #1 (Strong Buy) company provides fixed annuities and life insurance products.
On Nov 7, FG announced that its shareholders would receive a dividend of 21 cents a share on Dec 29, 2023. FG has a dividend yield of 2.1%.
Image: Bigstock
5 Stocks to Watch on Recent Dividend Hikes Amid Volatility
Various domestic and geopolitical news have clouded the investment landscape recently. After managing a strong recovery in the first half of 2023 from the previous-year lows, inflation fears and interest rate hikes by the Federal Reserve to counter inflation have impacted investors’ decision. The S&P 500 and the DOW posted a negative return of 0.59% and 1.74%, respectively, in the past three months.
The Consumer Price Index, which is the most accepted gauge for inflation, showed a favorable declining trend till June to 3% year on year in response to the Federal Reserve’s aggressive monetary policy tightening. However, inflation numbers increased to 3.2% year on year in July, and 3.7% in August and September. Fed Chairman Jerome Powell continues to stress on a stable inflation rate of 2% in the long run. To achieve its target, the Fed has keptthe overnight interest rate at 5.25-5.5%, which is the highest in 22 years and has kept the table set for further rate hikes if needed.
Investors are awaiting the upcoming October inflation report, which is expected on Nov 14, 2023. Though inflation is expected to cool off, it will likely be significantly higher than the Fed’s target. Market participants are anticipating another interest rate hike before the end of this year if the current interest rates remain higher for longer to win the inflation battle. The impact of higher cost of borrowing will affect profitability of American corporates. Also, Moody's Investors Services on Nov 11 lowered its outlook on U.S. credit rating to "negative" from “stable," sighting concerns over a very large fiscal deficit, which will significantly weaken debt affordability.
On the international front, escalating tensions in the Middle East due to the incessant war between Israel and the Palestine-based militant group Hamas has disrupted the global supply chain. Such events will impact corporate performance.
Keeping such a critical situation in mind, prudent investors seeking regular income and capital preservation can invest in dividend stocks. These companies, due to their well-established businesses, pay out regular dividends and remain profitable due to their proven business models. Companies that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.
On this note, let us look at companies like Autoliv (ALV - Free Report) , Scorpio Tankers (STNG - Free Report) , Assurant (AIZ - Free Report) , Lam Research (LRCX - Free Report) and F&G Annuities & Life, Inc. (FG - Free Report) that have lately hiked their dividend payouts.
Autoliv is headquartered in Stockholm, Sweden. This Zacks Rank #3 (Hold) company is one of the leading manufacturers and suppliers of a wide range of product offerings, which majorly include passive safety systems. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Nov 9, ALV declared that its shareholders would receive a dividend of 68 cents a share on Dec 13, 2023. ALV has a dividend yield of 2.7%.
Over the past five years, ALV has increased its dividend three times, and its payout ratio presently sits at 42% of earnings. Check Autoliv’s dividend history here.
Autoliv, Inc. Dividend Yield (TTM)
Autoliv, Inc. dividend-yield-ttm | Autoliv, Inc. Quote
Scorpio Tankers is headquartered in Monaco. This Zacks Rank #2 (Buy) company is a provider of marine transportation of petroleum products worldwide.
On Nov 9, STNG declared that its shareholders would receive a dividend of 35 cents a share on Dec 15, 2023. STNG has a dividend yield of 1.7%.
In the past five years, STNG has increased its dividend three times. Its payout ratio at present sits at 8% of earnings. Check Scorpio Tanker’s dividend history here.
Scorpio Tankers Inc. Dividend Yield (TTM)
Scorpio Tankers Inc. dividend-yield-ttm | Scorpio Tankers Inc. Quote
Assurant is headquartered in Atlanta, GE. This Zacks Rank #2 is a global provider of risk management solutions in the housing and lifestyle markets, protecting where people live and the goods they buy.
On Nov 9, AIZ declared that its shareholders would receive a dividend of 72 cents a share on Dec 18, 2023. AIZ has a dividend yield of 1.7%.
In the past five years, AIZ has increased its dividend six times. Its payout ratio at present sits at 20% of earnings. Check Assurant’s dividend history here.
Assurant, Inc. Dividend Yield (TTM)
Assurant, Inc. dividend-yield-ttm | Assurant, Inc. Quote
Lam Research is headquartered in Fremont, CA. This Zacks Rank #3 company is a leading supplier of wafer fabrication equipment and services to the semiconductor industry.
On Nov 9, LRCX declared that its shareholders would receive a dividend of $2 a share on Jan 3, 2024. LRCX has a dividend yield of 1.2%.
In the past five years, LRCX has increased its dividend five times. Its payout ratio at present sits at 26% of earnings. Check Lam Research’s dividend history here.
Lam Research Corporation Dividend Yield (TTM)
Lam Research Corporation dividend-yield-ttm | Lam Research Corporation Quote
F&G Annuities & Life, Inc. is headquartered in Des Moines, IO. This Zacks Rank #1 (Strong Buy) company provides fixed annuities and life insurance products.
On Nov 7, FG announced that its shareholders would receive a dividend of 21 cents a share on Dec 29, 2023. FG has a dividend yield of 2.1%.
Over the past five years, FG has increased its dividend once. Its payout ratio now sits at 26 of earnings. Check F&G Annuities & life's dividend history here.
F&G Annuities & Life, Inc. Dividend Yield (TTM)
F&G Annuities & Life, Inc. dividend-yield-ttm | F&G Annuities & Life, Inc. Quote