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3 Stocks That Announced Dividend Hikes Amid Geopolitical Tensions
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Key Takeaways
CASY declared a $0.65 dividend payable Aug. 14 and has raised payouts six times in five years.
CX announced a $0.03 dividend payable June 29 and has increased dividends four times in five years.
UNH declared a $2.32 dividend payable June 23, with six dividend hikes over five years.
Geopolitical tensions, a surge in global oil prices and economic uncertainties, owing to rising inflation, have turned Wall Street volatile. Stocks have been suffering lately as uncertainty over an end to the war with Iran has dented investors’ confidence.
Also, hopes of a rate cut are a distant dream as the Federal Reserve has indicated a rate hike if inflation remains elevated.
Amid the ongoing uncertainty, conservative investors seeking reliable income and looking for ways to protect their capital may want to 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: Casey's General Stores, Inc. (CASY - Free Report) , CEMEX, S.A.B. de C.V. (CX - Free Report) and UnitedHealth Group (UNH - Free Report) .
Geopolitical Uncertainty, High Inflation Raise Concerns
President Donald Trump on Wednesday suggested that the Iran war is far from over as negotiations with Tehran were taking “too long.” Investors had remained hopeful for over a month that the United States and Iran could reach a peace deal soon. However, a fresh round of attacks carried out earlier this week has again proved that the ceasefire remains fragile.
Oil prices have spiked nearly 40% since the beginning of the war, leading to a surge in inflation over the past two months.
Consumer price index (CPI) climbed 0.6% in April after increasing 0.9% in March. On an annual basis, CPI was up 3.8% in April compared with the same month a year earlier, marking its highest year-over-year reading since May 2023. Economists believe inflation rose further in May.
Investors were hopeful that the Federal Reserve would go for a rate cut in the second half of the year. However, several Fed officials believe a 25-basis-point rate cut will be necessary if inflation remains above the Fed’s 2% target. A rate hike could keep markets volatile for a longer period.
3 Stocks That Recently Announced Dividend Hikes
Casey's General Stores
Casey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 states, mainly Iowa, Missouri and Illinois. CASY offers a comprehensive range of products and services to meet the needs of its customers. Casey’s General Stores has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On June 9, Casey's General Stores announced that its shareholders would receive a dividend of $0.65 a share on Aug. 14. CASY has a dividend yield of 0.30%. Over the past five years, Casey's General Stores has increased its dividend six times, and its payout ratio presently sits at 13% of earnings. Check Casey's General Stores' dividend history here.
CEMEX
CEMEX, S.A.B. de C.V. is one of the largest cement companies in the world, with close to 78 million metric tons of production capacity. Through operating subsidiaries in four continents, CX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. CEMEX has a Zacks Rank #3.
On June 5, CEMEX declared that its shareholders would receive a dividend of $0.03 a share on June 29. CX has a dividend yield of 0.75%. Over the past five years, CEMEX has increased its dividend four times, and its payout ratio presently sits at 25% of earnings. Check CEMEX’s dividend history here.
UnitedHealth Group
UnitedHealth Group provides a wide range of healthcare products and services, such as health maintenance organizations, point of service plans, preferred provider organizations and managed fee-for-service programs. UNH has the largest and most diverse membership base within the managed-care organization market, which gives it significant competitive advantages.
On June 3, UnitedHealth Group announced that its shareholders would receive a dividend of $2.32 a share on June 23. UNH has a dividend yield of 2.14%. Over the past five years, UnitedHealth Group has increased its dividend six times, and its payout ratio at present sits at 54% of earnings. Check UnitedHealth Group’s dividend history here.
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3 Stocks That Announced Dividend Hikes Amid Geopolitical Tensions
Key Takeaways
Geopolitical tensions, a surge in global oil prices and economic uncertainties, owing to rising inflation, have turned Wall Street volatile. Stocks have been suffering lately as uncertainty over an end to the war with Iran has dented investors’ confidence.
Also, hopes of a rate cut are a distant dream as the Federal Reserve has indicated a rate hike if inflation remains elevated.
Amid the ongoing uncertainty, conservative investors seeking reliable income and looking for ways to protect their capital may want to 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: Casey's General Stores, Inc. (CASY - Free Report) , CEMEX, S.A.B. de C.V. (CX - Free Report) and UnitedHealth Group (UNH - Free Report) .
Geopolitical Uncertainty, High Inflation Raise Concerns
President Donald Trump on Wednesday suggested that the Iran war is far from over as negotiations with Tehran were taking “too long.” Investors had remained hopeful for over a month that the United States and Iran could reach a peace deal soon. However, a fresh round of attacks carried out earlier this week has again proved that the ceasefire remains fragile.
Oil prices have spiked nearly 40% since the beginning of the war, leading to a surge in inflation over the past two months.
Consumer price index (CPI) climbed 0.6% in April after increasing 0.9% in March. On an annual basis, CPI was up 3.8% in April compared with the same month a year earlier, marking its highest year-over-year reading since May 2023. Economists believe inflation rose further in May.
Investors were hopeful that the Federal Reserve would go for a rate cut in the second half of the year. However, several Fed officials believe a 25-basis-point rate cut will be necessary if inflation remains above the Fed’s 2% target. A rate hike could keep markets volatile for a longer period.
3 Stocks That Recently Announced Dividend Hikes
Casey's General Stores
Casey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 states, mainly Iowa, Missouri and Illinois. CASY offers a comprehensive range of products and services to meet the needs of its customers. Casey’s General Stores has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On June 9, Casey's General Stores announced that its shareholders would receive a dividend of $0.65 a share on Aug. 14. CASY has a dividend yield of 0.30%. Over the past five years, Casey's General Stores has increased its dividend six times, and its payout ratio presently sits at 13% of earnings. Check Casey's General Stores' dividend history here.
CEMEX
CEMEX, S.A.B. de C.V. is one of the largest cement companies in the world, with close to 78 million metric tons of production capacity. Through operating subsidiaries in four continents, CX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. CEMEX has a Zacks Rank #3.
On June 5, CEMEX declared that its shareholders would receive a dividend of $0.03 a share on June 29. CX has a dividend yield of 0.75%. Over the past five years, CEMEX has increased its dividend four times, and its payout ratio presently sits at 25% of earnings. Check CEMEX’s dividend history here.
UnitedHealth Group
UnitedHealth Group provides a wide range of healthcare products and services, such as health maintenance organizations, point of service plans, preferred provider organizations and managed fee-for-service programs. UNH has the largest and most diverse membership base within the managed-care organization market, which gives it significant competitive advantages.
On June 3, UnitedHealth Group announced that its shareholders would receive a dividend of $2.32 a share on June 23. UNH has a dividend yield of 2.14%. Over the past five years, UnitedHealth Group has increased its dividend six times, and its payout ratio at present sits at 54% of earnings. Check UnitedHealth Group’s dividend history here.