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3 Stocks to Watch That Recently Announced Dividend Hikes

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Key Takeaways

  • InterDigital declared a $0.70 dividend, marking four raises in five years with a 15% payout ratio.
  • JPMorgan announced a $1.50 dividend, its sixth hike in five years, with a payout ratio of 29%.
  • Microsoft declared a $0.91 dividend, raising payouts six times in five years with a 24% ratio.

Volatility has returned to Wall Street, with indexes retreating from their all-time highs attained earlier this week, as concerns over a weakening economy continue to dent investor sentiment. The decline came even after the Federal Reserve implemented an interest rate cut last week for the first time this year.

Also, inflation continues to be high and the Federal Reserve has not ruled out tougher times ahead. Given this situation, an astute investor would prefer to keep a close watch on dividend-paying stocks. These stocks, supported by solid business models and a track record of consistent performance, often withstand market fluctuations more effectively.

They provide a reliable income stream while helping to mitigate the risk of sudden price drops. Historically, companies that pay dividends have also outperformed non-dividend stocks during periods of market turbulence. Three such stocks are InterDigital, Inc. (IDCC - Free Report) , JPMorgan Chase & Co. (JPM - Free Report) and Microsoft Corporation (MSFT - Free Report) .

Volatility Returns to Wall Street

Major indexes closed lower for the second consecutive session on Wednesday, with the Dow closing 0.4% lower, while the S&P 500 and the Nasdaq were each down 0.3%. The decline comes days after all three major indexes registered record closing highs.

Stocks initially rallied after the Federal Reserve announced a quarter basis point rate cut last week and hinted at two more 25-basis-point rate cuts later this year. However, the Federal Reserve cautioned that the rate cut came as a weak jobs report hinted at a shrinking labor market.

On Tuesday, Federal Reserve Chairman Jerome Powell once again warned that the economy could weaken further and the central bank needs to balance inflation worries amid a shrinking labor market before deciding on the next rate cut.

This has reignited fears of a slowing economy, leading to massive selloffs over the past two sessions. The ongoing sentiment could keep markets volatile for a longer period.

3 Stocks That Recently Declared Dividend Hikes

InterDigital, Inc.

InterDigital, Inc. is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. IDCC engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. InterDigital has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

On Sept. 17, InterDigital announced that its shareholders would receive a dividend of $0.70 a share on Oct. 22. IDCC has a dividend yield of 0.69%. Over the past five years, InterDigital has increased its dividend four times, and its payout ratio presently sits at 15% of earnings. Check InterDigital’s dividend history here.

JPMorgan Chase & Co.

JPMorgan Chase & Co. is one of the biggest global banks with assets worth $4.55 trillion and total stockholders’ equity worth $256.9 billion as of June 30, 2025. With operations in more than 60 countries, JPM is one of the largest financial service firms globally. JPMorgan Chase and Co. carries a Zacks Rank #3 (Hold).

On Sept. 16, JPMorgan Chase & Co.declared that its shareholders would receive a dividend of $1.50 a share on Oct. 31. JPM has a dividend yield of 1.79%. Over the past five years, JPMorgan Chase & Co.has increased its dividend six times, and its payout ratio presently sits at 29% of earnings. Check JPMorgan Chase & Co.’s dividend history here.

Microsoft Corporation 

Microsoft Corporation is one of the largest broad-based technology providers in the world. MSFT dominates the PC software market with more than 73% of the market share for desktop operating systems. Microsoft Corporation has a Zacks Rank #2 (Buy).

On Sept. 15, Microsoft Corporation announced that its shareholders would receive a dividend of $0.91 a share on Dec. 11. MSFT has a dividend yield of 0.65%. Over the past five years, Microsoft Corporation has increased its dividend six times, and its payout ratio presently sits at 24% of earnings. Check Microsoft Corporation’s dividend history here.


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