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Buy These 4 Stocks That Recently Announced Dividend Hikes

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Key Takeaways

  • MSCI, FHN, SF and TRMK announced dividend increases on Jan. 27, with payments between February and April.
  • MSCI raised its payout as the Fed kept rates unchanged and investors look to dividends for steady income.
  • FHN, SF and TRMK offer yields above 1%, backed by payout ratios ranging f rom the mid-20% to low-40%.

The Federal Reserve left interest rates unchanged after its first policy meeting of the year that concluded on Wednesday. The decision was highly anticipated. However, markets have remained volatile for most of the month, as several factors, including geopolitical tensions, continue to dampen investors’ sentiment.

Investors are hopeful that the Federal Reserve will likely go for more rate cuts as inflation eases, but are yet to get a clear picture from the central bank. Given the uncertainty, cautious investors looking for steady income and ways to protect their capital may consider holding or investing in dividend-paying stocks.

Such stocks provide steady earnings through regular dividend payouts and can help mitigate the effects of market volatility. Four such stocks are: MSCI Inc. (MSCI - Free Report) ), First Horizon Corporation (FHN - Free Report) , Stifel Financial Corp. (SF - Free Report) and Trustmark Corporation (TRMK - Free Report) .                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

Fed Holds Interest Rates, Uncertainty Continues

The Federal Reserve held interest rates unchanged at its current range of 3.5% to 3.75% at the end of its two-day January FOMC meeting. According to the FOMC’s post-meeting statement, the economy has been “expanding at a solid pace.”

Federal Reserve Chairman Jerome Powell said, “I think, and many of my colleagues think, it’s hard to look at the incoming data and say the policy is significantly restrictive at this time.” However, the Federal Reserve didn’t give a clear picture of its future rate cut path.

Wall Street’s major indexes hit fresh all-time highs earlier in the month. However, a lot of the gains have been given up, and markets have remained volatile for most of the month. Several other factors have been contributing to the market instability.

The Department of Justice is conducting a criminal investigation into Powell, and President Donald Trump is already scouting for a new Fed Chairman. Also, inflation rose in October and November, drifting from the Fed’s 2% target.

4 Stocks That Recently Declared Announced Hikes

MSCI Inc.                                                                                       

MSCI Inc. provides investment decision support tools, including indexes; portfolio construction and risk management products and services; Environmental, Social and Governance research and ratings; and real estate research, reporting and benchmarking offerings. MSCI carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On Jan. 27, MSCIannounced that its shareholders would receive a dividend of $2.05 a share on Feb. 27. MSCI has a dividend yield of 1.24%. Over the past five years, MSCI has increased its dividend six times, and its payout ratio presently sits at 43% of earnings. Check MSCI’s dividend history here.

First Horizon Corporation 

First Horizon Corporation is a financial services company based in Memphis, TN. FHN provides diversified financial services, mainly via its principal subsidiary, First Horizon Bank. First Horizon Corporation sports a Zacks Rank #1.

On Jan. 27, First Horizon Corporation declared that its shareholders would receive a dividend of $0.17 a share on April 1. FHN has a dividend yield of 2.47%. Over the past five years, First Horizon Corporation has increased its dividend once, and its payout ratio presently sits at 32% of earnings. Check First Horizon Corporation’s dividend history here.

Stifel Financial

Stifel Financial Corp. is a holding company for Stifel Nicolaus & Company, Incorporated. SF has a Zacks Rank #2.

On Jan. 27, Stifel Financialannounced that its shareholders would receive a dividend of $0.51 a share on March 16. FHN has a dividend yield of 1.46%. Over the past five years, Stifel Financialhas increased its dividend six times, and its payout ratio presently sits at 29% of earnings. Check Stifel Financial’s dividend history here.

Trustmark Corporation 

Trustmark Corporation is a multi-bank holding company. Its primary business activities are conducted through its wholly owned subsidiary, Trustmark National Bank, and Trustmark National Bank's wholly owned nonbanking subsidiaries, Trustmark Financial Services, Inc. and Trustmark Insurance Agency, Inc. TRMK has a Zacks Rank #2.

On Jan. 27, Trustmarkdeclared that its shareholders would receive a dividend of $0.25 a share on March 15. TRMK has a dividend yield of 2.33%. Over the past five years, Trustmarkhas increased its dividend two times, and its payout ratio presently sits at 26% of earnings. Check Trustmark’s dividend history here.

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