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5 Stocks to Watch on Dividend Hikes as Inflation Softens
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Among the three major U.S. indexes, the Nasdaq Composite and the Dow Jones Industrial Average, have lost 1.03% and 0.52%, respectively, over the year-to-date period, whereas the S&P 500 has gained a marginal 0.60%. Investors are still hesitant to make any bold moves due to President Donald Trump’s announcement of sweeping tariffs on all the trading partners of the United States. However, a truce between China and the United States, the world's top two economies, indicates that import duties may be significantly reduced if a deal is reached.
The consumer price index (CPI) rose 0.2% sequentially in April and 2.3% from the year-ago levels, the lowest since February 2021. Federal Reserve Chair Jerome Powell said that the Federal Reserve needs more clarity before considering further interest rate cuts. Analysts expect the Fed to wait until September at the earliest before making further interest rate cuts since inflation is cooling steadily and is in line with the central bank’s 2% target. Market participants fear that the possibility of a recession persists due to the ongoing trade conflicts, which could negatively impact inflation and key economic indicators.
Amid such volatile market conditions, investors who wish to diversify their portfolios can pick dividend-paying stocks. Some of the prominent names are Marriott International (MAR - Free Report) , HNI (HNI - Free Report) , Sun Life Financial (SLF - Free Report) , ESAB Corporation (ESAB - Free Report) and Victory Capital Holdings (VCTR - Free Report) . Companies that pay out dividends indicate a consistently healthy business model. Stocks that have recently raised dividends exhibit a sound financial structure and can counter market upheavals. Stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.
Our Choices
Marriott International
Marriott International is a leading worldwide hospitality company engaged in the operation, franchising and licensing of hotel, residential, timeshare and other lodging properties worldwide. This Bethesda, MD-based company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On May 9, MAR declared that its shareholders would receive a dividend of 67 cents a share on June 30, 2025. MAR has a dividend yield of 0.9%.
Sun Life Financial is the third-largest insurer in Canada, providing protection and wealth management products and services to individual and group customers worldwide. The Zacks Rank #3 company is headquartered in Toronto, Canada.
On May 8, SLF announced that its shareholders would receive a dividend of 61 cents a share on June 30, 2025. SLF has a dividend yield of 3.7%.
ESAB Corporationis a premier global fabrication and specialty gas control technology company focused on welding technology, advanced equipment, consumables, specialty gas control, robotics and digital solutions. This North Bethesda, MD-based company currently carries a Zacks Rank #3.
On May 8, ESAB declared that its shareholders would receive a dividend of 10 cents a share on July 18, 2025. ESAB has a dividend yield of 0.3%.
Victory Capital Holdings is an integrated multi-boutique asset management firm that provides institutions, financial advisors and retirement platforms, including separately managed accounts, collective trusts, mutual funds, ETFs and UMA/SMA vehicles. The Zacks Rank #3 company is headquartered in Cleveland, OH.
On May 8, VCTR announced that its shareholders would receive a dividend of 49 cents a share on June 25, 2025. VCTR has a dividend yield of 2.9%.
Image: Bigstock
5 Stocks to Watch on Dividend Hikes as Inflation Softens
Among the three major U.S. indexes, the Nasdaq Composite and the Dow Jones Industrial Average, have lost 1.03% and 0.52%, respectively, over the year-to-date period, whereas the S&P 500 has gained a marginal 0.60%. Investors are still hesitant to make any bold moves due to President Donald Trump’s announcement of sweeping tariffs on all the trading partners of the United States. However, a truce between China and the United States, the world's top two economies, indicates that import duties may be significantly reduced if a deal is reached.
The consumer price index (CPI) rose 0.2% sequentially in April and 2.3% from the year-ago levels, the lowest since February 2021. Federal Reserve Chair Jerome Powell said that the Federal Reserve needs more clarity before considering further interest rate cuts. Analysts expect the Fed to wait until September at the earliest before making further interest rate cuts since inflation is cooling steadily and is in line with the central bank’s 2% target. Market participants fear that the possibility of a recession persists due to the ongoing trade conflicts, which could negatively impact inflation and key economic indicators.
Amid such volatile market conditions, investors who wish to diversify their portfolios can pick dividend-paying stocks. Some of the prominent names are Marriott International (MAR - Free Report) , HNI (HNI - Free Report) , Sun Life Financial (SLF - Free Report) , ESAB Corporation (ESAB - Free Report) and Victory Capital Holdings (VCTR - Free Report) . Companies that pay out dividends indicate a consistently healthy business model. Stocks that have recently raised dividends exhibit a sound financial structure and can counter market upheavals. Stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.
Our Choices
Marriott International
Marriott International is a leading worldwide hospitality company engaged in the operation, franchising and licensing of hotel, residential, timeshare and other lodging properties worldwide. This Bethesda, MD-based company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On May 9, MAR declared that its shareholders would receive a dividend of 67 cents a share on June 30, 2025. MAR has a dividend yield of 0.9%.
Over the past five years, MAR has increased its dividend five times, and its payout ratio presently sits at 26% of earnings. Check Marriott International’s dividend history here.
Marriott International, Inc. Dividend Yield (TTM)
Marriott International, Inc. dividend-yield-ttm | Marriott International, Inc. Quote
HNI
HNI is headquartered in Muscatine, IA. This Zacks Rank #2 (Buy) company provides products and solutions for the home and workplace environments.
On May 12, HNI declared that its shareholders would receive a dividend of 34 cents a share on June 11, 2025. HNI has a dividend yield of 2.8%.
In the past five years, HNI has increased its dividend four times. Its payout ratio is currently 42% of earnings. Check HNI’s dividend history here.
HNI Corporation Dividend Yield (TTM)
HNI Corporation dividend-yield-ttm | HNI Corporation Quote
Sun Life Financial
Sun Life Financial is the third-largest insurer in Canada, providing protection and wealth management products and services to individual and group customers worldwide. The Zacks Rank #3 company is headquartered in Toronto, Canada.
On May 8, SLF announced that its shareholders would receive a dividend of 61 cents a share on June 30, 2025. SLF has a dividend yield of 3.7%.
Over the past five years, SLF has increased its dividend 13 times. Its payout ratio now sits at 46% of earnings. Check Sun Life Financial's dividend history here.
Sun Life Financial Inc. Dividend Yield (TTM)
Sun Life Financial Inc. dividend-yield-ttm | Sun Life Financial Inc. Quote
ESAB Corporation
ESAB Corporationis a premier global fabrication and specialty gas control technology company focused on welding technology, advanced equipment, consumables, specialty gas control, robotics and digital solutions. This North Bethesda, MD-based company currently carries a Zacks Rank #3.
On May 8, ESAB declared that its shareholders would receive a dividend of 10 cents a share on July 18, 2025. ESAB has a dividend yield of 0.3%.
Over the past five years, ESAB has increased its dividend three times, and its payout ratio presently sits at 6% of earnings. Check ESAB Corporation’s dividend history here.
ESAB Corporation Dividend Yield (TTM)
ESAB Corporation dividend-yield-ttm | ESAB Corporation Quote
Victory Capital Holdings
Victory Capital Holdings is an integrated multi-boutique asset management firm that provides institutions, financial advisors and retirement platforms, including separately managed accounts, collective trusts, mutual funds, ETFs and UMA/SMA vehicles. The Zacks Rank #3 company is headquartered in Cleveland, OH.
On May 8, VCTR announced that its shareholders would receive a dividend of 49 cents a share on June 25, 2025. VCTR has a dividend yield of 2.9%.
Over the past five years, VCTR has increased its dividend 14 times. Its payout ratio now sits at 35% of earnings. Check Victory Capital Holdings' dividend history here.
Victory Capital Holdings, Inc. Dividend Yield (TTM)
Victory Capital Holdings, Inc. dividend-yield-ttm | Victory Capital Holdings, Inc. Quote