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4 Stocks to Watch That Declared Dividend Hikes Amid Rate-Cut Uncertainty

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Key Takeaways

  • CHMG raised its dividend to $0.34 per share, with a 2.52% yield and a payout ratio of 26%.
  • MTB declared a $1.50 per share dividend, offering a 2.84% yield and a 34% payout ratio.
  • MLM set a dividend of $0.83 per share, with a 0.52% yield and an 18% payout ratio.

Volatility has returned to Wall Street, with all three major indexes giving up gains this week as concerns grow over the economy’s health and uncertainty over an interest rate cut in September by the Federal Reserve continues.

Also, inflation remains elevated, and uncertainty over the impact of new tariffs has kept investors worried.

Given this scenario, cautious investors seeking steady income and ways to protect their capital might want to retain or invest in dividend-paying stocks. These stocks can deliver consistent earnings through regular dividends and help cushion the impact of market fluctuations. Four such stocks are Chemung Financial Corporation (CHMG - Free Report) , M&T Bank Corporation (MTB - Free Report) , Martin Marietta Materials, Inc. (MLM - Free Report) and United Community Banks, Inc. (UCB - Free Report) .

Volatility Returns on Rate Cut Uncertainty

The S&P 500 recorded its fourth straight day of losses on Wednesday, while the Nasdaq closed lower for the second consecutive day. Both indexes had hit multiple all-time closing highs last month. However, a weak jobs report and higher-than-expected wholesale inflation data raised fresh concerns over a rate cut by the Federal Reserve in September.

The producer price index (PPI), a gauge of the prices of final demand goods and services, rose 0.9% in July, sharply higher than the consensus estimate of a rise of 0.3%. Core PPI, which excludes the volatile food and energy prices, also jumped 0.9% month over month in July.

President Donald Trump’s tariffs have already led to a price spike in consumer goods. Market participants and Federal Reserve officials had already been anticipating a rise in inflation due to rising prices. The Federal Reserve has already taken a wait-and-watch stance as it wants to gauge the inflation meter before going for a rate cut.

On Wednesday, investors’ sentiment was further dented after the minutes of the Fed’s July meeting suggested that the central bank is in no rush to cut interest rates as officials showed concern over a shrinking labor market and inflation. High inflation and a delay in interest rate cuts could keep markets volatile for a longer period.

4 Stocks That Recently Announced Dividend Hikes

Chemung Financial Corporation

Chemung Financial Corporation is a bank holding company, engaged through the bank in full-service commercial and consumer banking and trust business. CHMG has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

On Aug. 19, Chemung Financial Corporation announced that its shareholders would receive a dividend of $0.34 a share on Oct. 1. CHMG has a dividend yield of 2.52%. Over the past five years, Chemung Financial Corporation has increased its dividend three times, and its payout ratio presently sits at 26% of earnings. Check Chemung Financial Corporation’s dividend history here.

M&T Bank Corporation

M&T Bank Corporation operates in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia and the District of Columbia through more than 961 domestic banking offices. MTB has a Zacks Rank #3 (Hold).

On Aug. 19, M&T Bank Corporation declared that its shareholders would receive a dividend of $1.50 a share on Sept. 30. MTB has a dividend yield of 2.84%. Over the past five years, M&T Bank Corporation has increased its dividend four times, and its payout ratio presently sits at 34% of earnings. Check M&T Bank Corporation’s dividend history here.

Martin Marietta Materials

Martin Marietta Materials, Inc. produces and supplies construction aggregates and other heavy building materials, mainly cement, in the United States. The end uses of the MLM’s aggregates and cement are infrastructure, private residential and private non-residential construction. MLM has a Zacks Rank #3.

On Aug. 14, Martin Marietta Materials announced that its shareholders would receive a dividend of $0.83 a share on Sept. 30. MLM has a dividend yield of 0.52%. Over the past five years, Martin Marietta Materials has increased its dividend six times, and its payout ratio presently sits at 18% of earnings. Check Martin Marietta Materials’ dividend history here.

United Community Banks, Inc. 

United Community Banks, Inc. is a bank holding company. UCB conducts its operations through a community-focused operating model of separate community banks. UCB has a Zacks Rank #2.

On Aug. 14, United Community Banks declared that its shareholders would receive a dividend of $0.25 a share on Oct. 3. UCB has a dividend yield of 3.07%. Over the past five years, United Community Banks has increased its dividend seven times, and its payout ratio presently sits at 39% of earnings. Check United Community Banks’ dividend history here.

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