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3 Stocks to Watch That Hiked Dividends Despite Economic Uncertainty
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Key Takeaways
ALRS declared a $0.22 dividend payable July 10 and has raised payouts six times in five years.
LII announced a $1.36 dividend for July 15, with a 1.03% yield and 23% payout ratio.
ESEA declared a $0.80 dividend payable June 16 and currently offers a 4.59% dividend yield.
Wall Street has remained volatile for most of the year despite all three major indexes hitting multiple all-time closing highs. High inflation, geopolitical tensions and labor market concerns have dented consumer confidence and have time and again unsettled markets.
Hopes of a rate cut by the Federal Reserve anytime soon are fast fading, and uncertainty over an end to the Iran war, which has resulted in a surge in global oil prices, continues to raise concerns.
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: AlerusFinancial Corporation (ALRS - Free Report) , Lennon International Inc. (LII - Free Report) and Euroseas Ltd. (ESEA - Free Report) .
High Inflation, Geopolitical Tensions Dent Investors’ Confidence
Inflation has been on the rise over the past couple of months after easing in the first few months of the year. Inflation increased for the second consecutive month in April.
The consumer price index (CPI) jumped 0.6% in April following a 0.9% rise in March, according to data released by the Bureau of Labor Statistics. Compared to the same period last year, CPI rose 3.8% in April, reaching its highest annual level since May 2023.
Core CPI, which excludes the volatile food and energy categories, gained 0.4% from the previous month and increased 2.8% year over year. Much of April’s inflation growth was fueled by a 3.8% jump in energy costs, which accounted for nearly 40% of the total increase.
Oil prices have surged nearly 40% since the beginning of the Iran war. President Donald Trump announced a ceasefire last month, but there has been little progress on a peace deal after the first round of talks between the two warring nations failed.
On Wednesday night, the United States reportedly resumed its attack on Iran, raising fresh concerns over renewed tensions.
The Federal Reserve left interest rates unchanged in its current range of 3.5%-3.75% in its last meeting. However, the minutes of the Fed’s last FOMC show that several policymakers are in favor of a rate hike if inflation continues to remain above the 2% target.
3 Stocks That Recently Announced Dividend Hikes
Alerus Financial Corporation
Alerus Financial Corporation is a financial services company. Through its subsidiary Alerus Financial, National Association, ALRS offers financial solutions to businesses and consumers. The company's segment consists of banking, retirement and benefit services, wealth management and mortgage. Alerus Financial Corporation has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On May 22, Alerus Financial Corporation announced that its shareholders would receive a dividend of $0.22 a share on July 10. ALRS has a dividend yield of 2.91%. Over the past five years, Alerus Financial Corporation has increased its dividend six times, and its payout ratio presently sits at 27% of earnings. Check Alerus Financial Corporation’s dividend history here.
Lennon International Inc.
Lennon International Inc. is a leading global provider of climate control solutions. LII designs, manufactures and markets a broad range of products for the heating, ventilation, air conditioning and refrigeration markets. Lennon International has a Zacks Rank #3.
On May 21, Lennon International declared that its shareholders would receive a dividend of $1.36 a share on July 15. LII has a dividend yield of 1.03%. Over the past five years, Lennon International has increased its dividend six times, and its payout ratio presently sits at 23% of earnings. Check Lennon International’s dividend history here.
Euroseas Ltd.
Euroseas Ltd. has been in the shipping business for the past 136 years. ESEA operates in the dry cargo, drybulk and container shipping markets. Euroseas has a Zacks Rank #2.
On May 21, Euroseas Ltd announced that its shareholders would receive a dividend of $0.80 a share on June 16. ESEA has a dividend yield of 4.59%. Over the past five years, Euroseas Ltd has increased its dividend six times, and its payout ratio presently sits at 17% of earnings. Check Euroseas Ltd’s dividend history here.
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3 Stocks to Watch That Hiked Dividends Despite Economic Uncertainty
Key Takeaways
Wall Street has remained volatile for most of the year despite all three major indexes hitting multiple all-time closing highs. High inflation, geopolitical tensions and labor market concerns have dented consumer confidence and have time and again unsettled markets.
Hopes of a rate cut by the Federal Reserve anytime soon are fast fading, and uncertainty over an end to the Iran war, which has resulted in a surge in global oil prices, continues to raise concerns.
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: Alerus Financial Corporation (ALRS - Free Report) , Lennon International Inc. (LII - Free Report) and Euroseas Ltd. (ESEA - Free Report) .
High Inflation, Geopolitical Tensions Dent Investors’ Confidence
Inflation has been on the rise over the past couple of months after easing in the first few months of the year. Inflation increased for the second consecutive month in April.
The consumer price index (CPI) jumped 0.6% in April following a 0.9% rise in March, according to data released by the Bureau of Labor Statistics. Compared to the same period last year, CPI rose 3.8% in April, reaching its highest annual level since May 2023.
Core CPI, which excludes the volatile food and energy categories, gained 0.4% from the previous month and increased 2.8% year over year. Much of April’s inflation growth was fueled by a 3.8% jump in energy costs, which accounted for nearly 40% of the total increase.
Oil prices have surged nearly 40% since the beginning of the Iran war. President Donald Trump announced a ceasefire last month, but there has been little progress on a peace deal after the first round of talks between the two warring nations failed.
On Wednesday night, the United States reportedly resumed its attack on Iran, raising fresh concerns over renewed tensions.
The Federal Reserve left interest rates unchanged in its current range of 3.5%-3.75% in its last meeting. However, the minutes of the Fed’s last FOMC show that several policymakers are in favor of a rate hike if inflation continues to remain above the 2% target.
3 Stocks That Recently Announced Dividend Hikes
Alerus Financial Corporation
Alerus Financial Corporation is a financial services company. Through its subsidiary Alerus Financial, National Association, ALRS offers financial solutions to businesses and consumers. The company's segment consists of banking, retirement and benefit services, wealth management and mortgage. Alerus Financial Corporation has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On May 22, Alerus Financial Corporation announced that its shareholders would receive a dividend of $0.22 a share on July 10. ALRS has a dividend yield of 2.91%. Over the past five years, Alerus Financial Corporation has increased its dividend six times, and its payout ratio presently sits at 27% of earnings. Check Alerus Financial Corporation’s dividend history here.
Lennon International Inc.
Lennon International Inc. is a leading global provider of climate control solutions. LII designs, manufactures and markets a broad range of products for the heating, ventilation, air conditioning and refrigeration markets. Lennon International has a Zacks Rank #3.
On May 21, Lennon International declared that its shareholders would receive a dividend of $1.36 a share on July 15. LII has a dividend yield of 1.03%. Over the past five years, Lennon International has increased its dividend six times, and its payout ratio presently sits at 23% of earnings. Check Lennon International’s dividend history here.
Euroseas Ltd.
Euroseas Ltd. has been in the shipping business for the past 136 years. ESEA operates in the dry cargo, drybulk and container shipping markets. Euroseas has a Zacks Rank #2.
On May 21, Euroseas Ltd announced that its shareholders would receive a dividend of $0.80 a share on June 16. ESEA has a dividend yield of 4.59%. Over the past five years, Euroseas Ltd has increased its dividend six times, and its payout ratio presently sits at 17% of earnings. Check Euroseas Ltd’s dividend history here.