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3 Stocks in Focus on Recently Announced Dividend Hikes

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Key Takeaways

  • A. O. Smith declared a $0.36 dividend per share, payable Nov. 17, with a 2.01% yield.
  • Lockheed Martin announced a $3.45 dividend per share, payable Dec. 30, with a 2.62% yield.
  • THOR Industries raised its dividend to $0.52 per share, payable Nov. 6, with a 1.98% yield.

Volatility has returned to Wall Street, with all three major indexes retreating from their all-time highs. Concerns over high inflation, a shrinking labor market and renewed trade war fears with China have been denting investors’ sentiment. Also, the ongoing government shutdown has now been worrying investors.

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. Three such stocks are A. O. Smith Corporation (AOS - Free Report) , Lockheed Martin Corporation (LMT - Free Report) and THOR Industries, Inc. (THO - Free Report) .

Volatility Returns to Wall Street

Markets have remained volatile since the end of September, as multiple factors continue to unsettle investors. On Tuesday, stocks nosedived once again. The S&P 500 and the Nasdaq ended 0.2% and 0.8% lower, respectively, on renewed fears of a trade spat with China that began last week.

Last week, Trump threatened to impose 100% tariffs on China, and on Tuesday, once again slammed Beijing for not buying soybeans from the United States. Trump’s tariff threats created further pressure on markets.

Investors have lately been deprived of any economic data owing to the ongoing government shutdown. This has made them unable to gauge the future of the economy’s health. Inflation is still high and a shrinking labor market has raised fears of the economy slipping into a recession.

Although the Federal Reserve cut interest rates by 25 basis points last month and has hinted at two more rate cuts this year, high inflation and a shrinking jobs market continue to worry investors.

3Stocks That Recently Announced Dividend Hikes

A. O. Smith Corporation

A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. AOS specializes in offering innovative, and energy-efficient solutions and products, which are developed and sold globally. A. O. Smith Corporation has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On Oct. 13, A. O. Smith Corporationannounced that its shareholders would receive a dividend of $0.36 a share on Nov. 17. AOS has a dividend yield of 2.01%. Over the past five years, A. O. Smith Corporationhas increased its dividend six times, and its payout ratio presently sits at 37% of earnings. Check A. O. Smith Corporation’s dividend history here.

Lockheed Martin Corporation

Lockheed Martin Corporation is the largest defense contractor in the world. LMT’s main areas of focus are in defense, space, intelligence, homeland security and information technology, including cyber security. Lockheed Martin Corporation has a Zacks Rank #3 (Hold).

On Oct. 9, Lockheed Martindeclared that its shareholders would receive a dividend of $3.45 a share on Dec. 30. LMT has a dividend yield of 2.62%. Over the past five years, Lockheed Martinhas increased its dividend six times, and its payout ratio presently sits at 45% of earnings. Check Lockheed Martin’s dividend history here.

THOR Industries

THOR Industries, Inc. is the largest manufacturer of RVs in the world. THO builds a variety of RVs in North America and Europe and sells those vehicles along with related parts and accessories to independent, non-franchise dealers throughout the United States, Canada and Europe.

On Oct. 8, THOR Industriesannounced that its shareholders would receive a dividend of $0.52 a share on Nov. 6. Zacks Rank #3 THO has a dividend yield of 1.98%. Over the past five years, THOR Industries has increased its dividend six times, and its payout ratio presently sits at 43% of earnings. Check THOR Industries’ dividend history here.


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