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U.S. stock markets have been witnessing an astonishing rally in 2023 after a highly disappointing 2022. The rally is likely to continue in 2024 amid a clear indication from the central bank that the current interest rate hike cycle, which elevated the Fed fund rate to a 22-year high of 5.25-5.50% from 0-0.25% in March 2022, has finally ended.
Moreover, the December FOMC meeting dot plot has shown that on average, Fed officials are expecting at least three rate cuts of 25 basis points each in 2024, followed by four more rate cuts of a full one percentage point in 2025. The dot plot has also indicated three more rate cuts in 2026, which would take down the benchmark lending rate to the range of 2-2.25%.
Despite these positives, we should remain watchful since any external disturbances like geopolitical conflict or oil price fluctuation may create volatility in markets. Moreover, we are not out of the woods, as inflation is still highly elevated.
The Israel-Hamas war is a key concern. Major global carries have diverted more than $30 billion worth of cargo away from the Red Sea due to the threat of attacks from Houthi militants in Yemen. Fifteen attacks have taken place on this route since the beginning of the war.
Stocks to Watch
At this stage, dividend-paying stocks should be in demand as investors try to safeguard their portfolios. We believe one should consider stocks that have recently raised their dividend payments. Five such companies are — Bristol-Myers Squibb Co. (BMY - Free Report) , Quanta Services Inc. (PWR - Free Report) , Carrier Global Corp. (CARR - Free Report) , Broadcom Inc. (AVGO - Free Report) and Owens Corning (OC - Free Report) . Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bristol-Myers Squibb discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. Growth in Opdivo and its new product portfolio (primarily Opdualag, Reblozyl and Zeposia) is being offset by declining revenues due to generic competition for Revlimid and Eliquis (outside the United States).
Nevertheless, the label expansion of Opdivo for first-line lung cancer, bladder cancer and gastric cancer continues to boost sales. The approval of drugs like Opdualag, Reblozyl, Breyanzi and Sotyktu diversifies BMY’s revenue base. The impending acquisition of Mirati Therapeutics should strengthen BMY’s oncology portfolio.
On Dec 6, 2023, Bristol-Myers Squibb declared that its shareholders would receive a dividend of $0.60 per share on Feb 2, 2024. It has a dividend yield of 4.8%. Over the past five years, BMY has increased its dividend six times, and its payout ratio presently stays at 30% of earnings. Check BMY’s dividend history here.
Quanta Services has been benefiting from strong contributions from the Electric Power Infrastructure Solutions and Renewable Energy Infrastructure Solutions segments. This was backed by high demand for PWR’s infrastructure solutions and increased project activity associated with renewable generation. PWR raised its 2023 guidance on the back of this uptrend.
On Dec 6, 2023, Quanta Services declared that its shareholders would receive a dividend of $0.09 per share on Jan 12, 2024. It has a dividend yield of 0.2%. Over the past five years, PWR has increased its dividend five times, and its payout ratio presently stays at 5% of earnings. Check PWR’s dividend history here.
Carrier Global expects light commercial HVAC sales to be up about 30% compared with the previous projection of 20%. CARR expects the container business, commercial refrigeration and the entire Refrigeration segment to return to organic sales growth. CARR raised adjusted operating margin guidance for 2023 based on strong year-to-date results. CARR also increased its earnings guidance for 2023, along with free cash flow.
CARR’s prospects benefit from secular trends around sustainability and healthy buildings. Increasing adoption of its intelligent climate and energy solutions is aiding top-line growth. Abound is likely to continue driving growth in recurring revenues. Embedding AI and generative AI capabilities into Abound will drive solutions for CARR’s customers.
On Dec 6, 2023, Carrier Global declared that its shareholders would receive a dividend of $0.19 per share on Feb 9, 2024. It has a dividend yield of 1.4%. Over the past five years, CARR has increased its dividend four times, and its payout ratio presently stays at 28% of earnings. Check CARR’s dividend history here.
Broadcom has been benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises. AVGO expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022.
Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids AVGO’s prospects. An expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst. AVGO expects networking revenues to grow nearly 20% year over year in the fiscal third quarter.
On Dec 7, 2023, Broadcom declared that its shareholders would receive a dividend of $5.25 per share on Dec 29, 2023. It has a dividend yield of 2.3%. Over the past five years, AVGO has increased its dividend five times, and its payout ratio presently stays at 48% of earnings. Check AVGO’s dividend history here.
Owens Corning is benefiting from the solid performance of the Roofing segment driven by higher volumes related to storm activity, favorable mix and positive price realization. Customer mix and strategic buyouts are added benefits. OC’s focus on new product and process innovation bodes well. In the first three quarters, OC has unveiled 25 new or refreshed products across the three businesses.
On Dec 7, 2023, Owens Corning declared that its shareholders would receive a dividend of $0.60 per share on Jan 19, 2023. It has a dividend yield of 1.7%. Over the past five years, OC has increased its dividend six times, and its payout ratio presently stays at 15% of earnings. Check OC’s dividend history here.
Image: Bigstock
5 Stocks to Watch on Their Recent Dividend Hike
U.S. stock markets have been witnessing an astonishing rally in 2023 after a highly disappointing 2022. The rally is likely to continue in 2024 amid a clear indication from the central bank that the current interest rate hike cycle, which elevated the Fed fund rate to a 22-year high of 5.25-5.50% from 0-0.25% in March 2022, has finally ended.
Moreover, the December FOMC meeting dot plot has shown that on average, Fed officials are expecting at least three rate cuts of 25 basis points each in 2024, followed by four more rate cuts of a full one percentage point in 2025. The dot plot has also indicated three more rate cuts in 2026, which would take down the benchmark lending rate to the range of 2-2.25%.
Despite these positives, we should remain watchful since any external disturbances like geopolitical conflict or oil price fluctuation may create volatility in markets. Moreover, we are not out of the woods, as inflation is still highly elevated.
The Israel-Hamas war is a key concern. Major global carries have diverted more than $30 billion worth of cargo away from the Red Sea due to the threat of attacks from Houthi militants in Yemen. Fifteen attacks have taken place on this route since the beginning of the war.
Stocks to Watch
At this stage, dividend-paying stocks should be in demand as investors try to safeguard their portfolios. We believe one should consider stocks that have recently raised their dividend payments.
Five such companies are — Bristol-Myers Squibb Co. (BMY - Free Report) , Quanta Services Inc. (PWR - Free Report) , Carrier Global Corp. (CARR - Free Report) , Broadcom Inc. (AVGO - Free Report) and Owens Corning (OC - Free Report) . Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bristol-Myers Squibb discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. Growth in Opdivo and its new product portfolio (primarily Opdualag, Reblozyl and Zeposia) is being offset by declining revenues due to generic competition for Revlimid and Eliquis (outside the United States).
Nevertheless, the label expansion of Opdivo for first-line lung cancer, bladder cancer and gastric cancer continues to boost sales. The approval of drugs like Opdualag, Reblozyl, Breyanzi and Sotyktu diversifies BMY’s revenue base. The impending acquisition of Mirati Therapeutics should strengthen BMY’s oncology portfolio.
On Dec 6, 2023, Bristol-Myers Squibb declared that its shareholders would receive a dividend of $0.60 per share on Feb 2, 2024. It has a dividend yield of 4.8%. Over the past five years, BMY has increased its dividend six times, and its payout ratio presently stays at 30% of earnings. Check BMY’s dividend history here.
Bristol Myers Squibb Company Dividend Yield (TTM)
Bristol Myers Squibb Company dividend-yield-ttm | Bristol Myers Squibb Company Quote
Quanta Services has been benefiting from strong contributions from the Electric Power Infrastructure Solutions and Renewable Energy Infrastructure Solutions segments. This was backed by high demand for PWR’s infrastructure solutions and increased project activity associated with renewable generation. PWR raised its 2023 guidance on the back of this uptrend.
On Dec 6, 2023, Quanta Services declared that its shareholders would receive a dividend of $0.09 per share on Jan 12, 2024. It has a dividend yield of 0.2%. Over the past five years, PWR has increased its dividend five times, and its payout ratio presently stays at 5% of earnings. Check PWR’s dividend history here.
Quanta Services, Inc. Dividend Yield (TTM)
Quanta Services, Inc. dividend-yield-ttm | Quanta Services, Inc. Quote
Carrier Global expects light commercial HVAC sales to be up about 30% compared with the previous projection of 20%. CARR expects the container business, commercial refrigeration and the entire Refrigeration segment to return to organic sales growth. CARR raised adjusted operating margin guidance for 2023 based on strong year-to-date results. CARR also increased its earnings guidance for 2023, along with free cash flow.
CARR’s prospects benefit from secular trends around sustainability and healthy buildings. Increasing adoption of its intelligent climate and energy solutions is aiding top-line growth. Abound is likely to continue driving growth in recurring revenues. Embedding AI and generative AI capabilities into Abound will drive solutions for CARR’s customers.
On Dec 6, 2023, Carrier Global declared that its shareholders would receive a dividend of $0.19 per share on Feb 9, 2024. It has a dividend yield of 1.4%. Over the past five years, CARR has increased its dividend four times, and its payout ratio presently stays at 28% of earnings. Check CARR’s dividend history here.
Carrier Global Corporation Dividend Yield (TTM)
Carrier Global Corporation dividend-yield-ttm | Carrier Global Corporation Quote
Broadcom has been benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises. AVGO expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022.
Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids AVGO’s prospects. An expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst. AVGO expects networking revenues to grow nearly 20% year over year in the fiscal third quarter.
On Dec 7, 2023, Broadcom declared that its shareholders would receive a dividend of $5.25 per share on Dec 29, 2023. It has a dividend yield of 2.3%. Over the past five years, AVGO has increased its dividend five times, and its payout ratio presently stays at 48% of earnings. Check AVGO’s dividend history here.
Broadcom Inc. Dividend Yield (TTM)
Broadcom Inc. dividend-yield-ttm | Broadcom Inc. Quote
Owens Corning is benefiting from the solid performance of the Roofing segment driven by higher volumes related to storm activity, favorable mix and positive price realization. Customer mix and strategic buyouts are added benefits. OC’s focus on new product and process innovation bodes well. In the first three quarters, OC has unveiled 25 new or refreshed products across the three businesses.
On Dec 7, 2023, Owens Corning declared that its shareholders would receive a dividend of $0.60 per share on Jan 19, 2023. It has a dividend yield of 1.7%. Over the past five years, OC has increased its dividend six times, and its payout ratio presently stays at 15% of earnings. Check OC’s dividend history here.
Owens Corning Inc Dividend Yield (TTM)
Owens Corning Inc dividend-yield-ttm | Owens Corning Inc Quote