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Watch These 5 Stocks That Have Hiked Dividend Recently
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U.S. stock markets continue to show momentum in January after some initial hiccups following an astonishing 2023. Month to date, the Dow, the S&P 500, and the Nasdaq Composite are up 1.1%, 2.5% and 3%, respectively.
A strong U.S. economy along with a steadily dwindling inflation rate, put an end to the fear of a near-term recession and restored hope among market participants that the Fed is likely to achieve the much-hyped soft landing of the economy.
However, market participants remain concerned regarding when the Fed would initiate the first cut in the benchmark interest rate. Recently, a few key Fed FOMC members said that although they believe that the rate hike regime is over, they are yet to be convinced that the economic condition is conducive enough for an immediate rate cut.
The CME FedWatch tool currently shows a 47.7% probability that the central bank will initiate the first rate cut. The probability of the first rate cut was 73% just two weeks ago and more than 90% at the beginning of 2024.
Stocks to Watch
At this stage, it should be wise for investors to accumulate dividend-paying stocks to safeguard their portfolios. In this regard, one should consider stocks that have recently raised their dividend payments. Five such companies are — Yum! Brands Inc. (YUM - Free Report) , Hexcel Corp. (HXL - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) , United Rentals Inc. (URI - Free Report) and Heritage Financial Corp. (HFWA - Free Report) .
Yum! Brands is likely to benefit from continued focus on off-premise channels, strategic investments in digital technology and refranchising. YUM has implemented various digital features in mobile and online platforms across all brand segments to enhance the guest experience.
YUM has been working toward accelerating its delivery services and the results have been positive so far. YUM stated that its in-house developed AI module, Automated Inventory Management is expected to be launched across the KFC US system. Also, the emphasis on unit expansion efforts bodes well. YUM currently carries a Zacks Rank #3 (Hold).
On Jan 24, 2024, Yum! Brands declared that its shareholders would receive a dividend of $0.67 per share on Mar 8, 2024. It has a dividend yield of 2.1%. Over the past five years, YUM has increased its dividend six times, and its payout ratio presently stays at 46% of earnings. Check YUM’s dividend history here.
Hexcel’s commercial aerospace business is benefiting from the improvement in global air traffic and demand for Airbus and Boeing’s wide-body programs. The unit may continue to deliver robust performance in the near term.
HXL will also gain from increased defense spending of various nations like the United States. HXL also boasts a solid solvency position. HXL’s current ratio of 3.03 at the end of the third quarter indicates the stock’s capability to pay off its short-term debt. HXL currently carries a Zacks Rank #3.
On Jan 24, 2024, Hexcel declared that its shareholders would receive a dividend of $0.15 per share on Feb 16, 2024. It has a dividend yield of 0.8%. Over the past five years, HXL has increased its dividend three times, and its payout ratio presently stays at 28% of earnings. Check HXL’s dividend history here.
Arthur J. Gallagher is on track to generate both organic (particularly international) and inorganic growth. AJG’s focus on tapping opportunities across the globe bodes well for growth. AJG expects 2023 organic revenues and adjusted EBITDAC margins for the Risk Management and Brokerage segment to be better than the 2022 level.
This solid performance is expected to lead to an increase in cash flows, facilitating the return of wealth to shareholders via share buybacks and dividends. A higher return on equity bodes well. AJG currently carries a Zacks Rank #3.
On Jan 24, 2024, Arthur J. Gallagher declared that its shareholders would receive a dividend of $0.60 per share on Mar 15, 2024. It has a dividend yield of 1%. Over the past five years, AJG has increased its dividend six times, and its payout ratio presently stays at 25% of earnings. Check AJG’s dividend history here.
United Rentals is benefiting from sustained demand in its end markets and the strength of its core rental business. URI’s third-quarter 2023 earnings and revenues grew 26.5% and 23.4%, respectively, driven by higher rental revenues (up 18%), owing to the broad-based recovery of activity across end markets served by the company.
In 2023, URI expects to deliver another profitable year, strong cash flow, and attractive returns for shareholders backed by substantial opportunities across various federally funded projects. URI sees multi-year tailwinds across infrastructure, manufacturing, and energy and power. URI currently carries a Zacks Rank #3.
On Jan 24, 2024, United Rentals declared that its shareholders would receive a dividend of $1.63 per share on Feb 28, 2024. It has a dividend yield of 1.1%. Over the past five years, URI has increased its dividend once, and its payout ratio presently stays at 15% of earnings. Check URI’s dividend history here.
Heritage Financial operates as the bank holding company for Heritage Bank, which provides various financial services to small and medium sized businesses and individuals in the United States. HFWA accepts various deposit products, such as noninterest demand deposits, interest-bearing demand deposits, money-market accounts, savings accounts, personal checking accounts, and certificates of deposit.
HFWA’s loan portfolio includes commercial and industrial loans, owner-occupied and non-owner-occupied commercial real estate loans, one-to-four family residential loans, real estate construction and land development loans, consumer loans, commercial business loans, lines of credit, term equipment financing, and term real estate loans, as well as commercial business loans to a range of businesses in industries. HFWA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Jan 24, 2024, Heritage Financial declared that its shareholders would receive a dividend of $0.23 per share on Feb 22, 2024. It has a dividend yield of 4.6%. Over the past five years, HFWA has increased its dividend six times, and its payout ratio presently stays at 43% of earnings. Check HFWA’s dividend history here.
Image: Bigstock
Watch These 5 Stocks That Have Hiked Dividend Recently
U.S. stock markets continue to show momentum in January after some initial hiccups following an astonishing 2023. Month to date, the Dow, the S&P 500, and the Nasdaq Composite are up 1.1%, 2.5% and 3%, respectively.
A strong U.S. economy along with a steadily dwindling inflation rate, put an end to the fear of a near-term recession and restored hope among market participants that the Fed is likely to achieve the much-hyped soft landing of the economy.
However, market participants remain concerned regarding when the Fed would initiate the first cut in the benchmark interest rate. Recently, a few key Fed FOMC members said that although they believe that the rate hike regime is over, they are yet to be convinced that the economic condition is conducive enough for an immediate rate cut.
The CME FedWatch tool currently shows a 47.7% probability that the central bank will initiate the first rate cut. The probability of the first rate cut was 73% just two weeks ago and more than 90% at the beginning of 2024.
Stocks to Watch
At this stage, it should be wise for investors to accumulate dividend-paying stocks to safeguard their portfolios. In this regard, one should consider stocks that have recently raised their dividend payments. Five such companies are — Yum! Brands Inc. (YUM - Free Report) , Hexcel Corp. (HXL - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) , United Rentals Inc. (URI - Free Report) and Heritage Financial Corp. (HFWA - Free Report) .
Yum! Brands is likely to benefit from continued focus on off-premise channels, strategic investments in digital technology and refranchising. YUM has implemented various digital features in mobile and online platforms across all brand segments to enhance the guest experience.
YUM has been working toward accelerating its delivery services and the results have been positive so far. YUM stated that its in-house developed AI module, Automated Inventory Management is expected to be launched across the KFC US system. Also, the emphasis on unit expansion efforts bodes well. YUM currently carries a Zacks Rank #3 (Hold).
On Jan 24, 2024, Yum! Brands declared that its shareholders would receive a dividend of $0.67 per share on Mar 8, 2024. It has a dividend yield of 2.1%. Over the past five years, YUM has increased its dividend six times, and its payout ratio presently stays at 46% of earnings. Check YUM’s dividend history here.
Yum! Brands, Inc. Dividend Yield (TTM)
Yum! Brands, Inc. dividend-yield-ttm | Yum! Brands, Inc. Quote
Hexcel’s commercial aerospace business is benefiting from the improvement in global air traffic and demand for Airbus and Boeing’s wide-body programs. The unit may continue to deliver robust performance in the near term.
HXL will also gain from increased defense spending of various nations like the United States. HXL also boasts a solid solvency position. HXL’s current ratio of 3.03 at the end of the third quarter indicates the stock’s capability to pay off its short-term debt. HXL currently carries a Zacks Rank #3.
On Jan 24, 2024, Hexcel declared that its shareholders would receive a dividend of $0.15 per share on Feb 16, 2024. It has a dividend yield of 0.8%. Over the past five years, HXL has increased its dividend three times, and its payout ratio presently stays at 28% of earnings. Check HXL’s dividend history here.
Hexcel Corporation Dividend Yield (TTM)
Hexcel Corporation dividend-yield-ttm | Hexcel Corporation Quote
Arthur J. Gallagher is on track to generate both organic (particularly international) and inorganic growth. AJG’s focus on tapping opportunities across the globe bodes well for growth. AJG expects 2023 organic revenues and adjusted EBITDAC margins for the Risk Management and Brokerage segment to be better than the 2022 level.
This solid performance is expected to lead to an increase in cash flows, facilitating the return of wealth to shareholders via share buybacks and dividends. A higher return on equity bodes well. AJG currently carries a Zacks Rank #3.
On Jan 24, 2024, Arthur J. Gallagher declared that its shareholders would receive a dividend of $0.60 per share on Mar 15, 2024. It has a dividend yield of 1%. Over the past five years, AJG has increased its dividend six times, and its payout ratio presently stays at 25% of earnings. Check AJG’s dividend history here.
Arthur J. Gallagher & Co. Dividend Yield (TTM)
Arthur J. Gallagher & Co. dividend-yield-ttm | Arthur J. Gallagher & Co. Quote
United Rentals is benefiting from sustained demand in its end markets and the strength of its core rental business. URI’s third-quarter 2023 earnings and revenues grew 26.5% and 23.4%, respectively, driven by higher rental revenues (up 18%), owing to the broad-based recovery of activity across end markets served by the company.
In 2023, URI expects to deliver another profitable year, strong cash flow, and attractive returns for shareholders backed by substantial opportunities across various federally funded projects. URI sees multi-year tailwinds across infrastructure, manufacturing, and energy and power. URI currently carries a Zacks Rank #3.
On Jan 24, 2024, United Rentals declared that its shareholders would receive a dividend of $1.63 per share on Feb 28, 2024. It has a dividend yield of 1.1%. Over the past five years, URI has increased its dividend once, and its payout ratio presently stays at 15% of earnings. Check URI’s dividend history here.
United Rentals, Inc. Dividend Yield (TTM)
United Rentals, Inc. dividend-yield-ttm | United Rentals, Inc. Quote
Heritage Financial operates as the bank holding company for Heritage Bank, which provides various financial services to small and medium sized businesses and individuals in the United States. HFWA accepts various deposit products, such as noninterest demand deposits, interest-bearing demand deposits, money-market accounts, savings accounts, personal checking accounts, and certificates of deposit.
HFWA’s loan portfolio includes commercial and industrial loans, owner-occupied and non-owner-occupied commercial real estate loans, one-to-four family residential loans, real estate construction and land development loans, consumer loans, commercial business loans, lines of credit, term equipment financing, and term real estate loans, as well as commercial business loans to a range of businesses in industries. HFWA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Jan 24, 2024, Heritage Financial declared that its shareholders would receive a dividend of $0.23 per share on Feb 22, 2024. It has a dividend yield of 4.6%. Over the past five years, HFWA has increased its dividend six times, and its payout ratio presently stays at 43% of earnings. Check HFWA’s dividend history here.
Heritage Financial Corporation Dividend Yield (TTM)
Heritage Financial Corporation dividend-yield-ttm | Heritage Financial Corporation Quote