Volatility has returned to Wall Street, with the S&P 500 declining for the third straight session on Tuesday after hitting an all-time closing high last week. High inflation and surging oil prices owing to the ongoing Iran war have been weighing on the economy, with consumer confidence hitting rock bottom.

Also, concerns have been growing that the Federal Reserve could go for a rate hike as it struggles to control sky-high inflation.

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. Three such stocks are: Taiwan Semiconductor Manufacturing Company Limited (TSM Quick QuoteTSM - Free Report) , Qiagen N.V. (QGEN Quick QuoteQGEN - Free Report) and First Majestic Silver Corp. (AG Quick QuoteAG - Free Report) . Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Concerns Grow Over Economy

Treasury yields have surged lately on reports that inflation has been on the rise as the Iran war has led to a surge in oil prices. On Tuesday, the yield on the 30-year Treasury briefly climbed above 5.19%, reaching its highest level in nearly 19 years.

Also, the 10-year Treasury note yield — a key benchmark for mortgage rates, auto loans, and credit card borrowing costs — jumped to 4.687%, its highest point since January 2025. The ongoing war with Iran has triggered a nearly 40% jump in oil prices, which has been weighing on the economy.

Inflation, which was steadily heading toward the Federal Reserve’s 2% target, has been on the rise over the past couple of months. 

The latest inflation data showed that consumer prices continued to rise at a faster pace in April. According to the Bureau of Labor Statistics, the consumer price index (CPI) increased 0.6% from the previous month after climbing 0.9% in March. Compared with a year earlier, CPI was up 3.8% in April, marking its highest annual increase since May 2023.

Core CPI, which excludes the more volatile food and energy categories, also moved higher. It rose 0.4% month over month in April and was up 2.8% from the same period last year.

The recent surge in inflation has complicated the Federal Reserve’s plans for interest rate cuts. While the central bank had paused rate cuts this year and previously signaled the possibility of cuts later in 2026, the stronger-than-expected inflation readings over the past two months have made that outlook far more uncertain. As inflation pressures persist, expectations for near-term rate cuts have weakened significantly.

3 Stocks That Recently Announced Dividend Hikes

Taiwan Semiconductor Manufacturing Company Limited

Taiwan Semiconductor Manufacturing Company Limited is the world's largest dedicated integrated circuit foundry. TSM manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes.

On May 12, Taiwan Semiconductor Manufacturing Company Limited announced that its shareholders would receive a dividend of $1.10 a share on Oct. 8. TSM has a dividend yield of 0.75%. Over the past five years, Taiwan Semiconductor Manufacturing Company Limited has increased its dividend 15 times, and its payout ratio presently sits at 25% of earnings. Check Taiwan Semiconductor Manufacturing Company Limited’s dividend history here.

Qiagen N.V.

Qiagen N.V. is one of the world’s leading providers of technologies and products for the separation, purification and handling of nucleic acids, DNA/RNA. QGEN provides innovative technologies and products for pre-analytical sample preparation and molecular diagnostics solutions.

On May 11, Qiagen declared that its shareholders would receive a dividend of $0.35 a share on July 14. QGEN has a dividend yield of 0.78%. Over the past five years, Qiagen has increased its dividend once, and its payout ratio presently sits at 11% of earnings. Check Qiagen’s dividend history here.

First Majestic Silver Corp.

First Majestic Silver Corp. is engaged in the production, development, exploration and acquisition of silver mines in Mexico. 

On May 11, First Majestic Silver announced that its shareholders would receive a dividend of $0.02 a share on May 29. AG has a dividend yield of 0.17%. Over the past five years, First Majestic Silver has increased its dividend 12 times, and its payout ratio presently sits at 5% of earnings. Check First Majestic Silver Corp’s dividend history here.