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4 Stocks That Recently Hiked Dividends Amid Geopolitical Tensions
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Key Takeaways
Geopolitical tensions and rising oil prices have renewed inflation concerns and market volatility.
SJM, PPG, SPFI and CNP recently announced higher dividends for shareholders.
June inflation eased, but higher oil prices could renew price pressures and affect rate expectations.
Volatility has returned to Wall Street as geopolitical tensions have resumed over the past week. Oil prices, which eased in June, are rising again, igniting fears that inflation could increase.
Amid the ongoing market uncertainty, conservative investors looking for stable income while protecting their capital may find dividend-paying stocks appealing. These stocks offer a steady stream of income through regular dividend payments and can help reduce the impact of market volatility.
The United States continued its attack on Iran for the ninth straight day on Monday, as hostilities intensified. The attacks come as President Donald Trump said earlier this month that he is no longer interested in negotiations while Iran scrapped the temporary memorandum of association to end hostilities.
On Monday, oil prices rose further after Trump, in a Truth Social post, said that Iran will have to pay for the deaths of three U.S. soldiers “many more times.”
Inflation declined in June after a temporary memorandum of understanding was signed by the United States and Iran in mid-June to end hostilities. The consumer price index (CPI) fell 0.4% sequentially in June, after increasing 0.5% in May.
Year over year, CPI declined to 3.5% in June, surpassing the consensus estimate of a reading of 3.8%. The decline follows a reading of 4.2% in May. The monthly decline in CPI was the biggest since April 2020.
However, with surging oil prices, inflation could once again resume its climb. The Federal Reserve has kept interest rates unchanged this year in its current range of 3.5-3.75%. Markets are pricing in a quarter-percentage-point rate hike by the end of this year, as the Federal Reserve continues to tame sky-high inflation.
4 Stocks That Recently Announced Dividend Hikes
The J. M. Smucker Company
The J. M. Smucker Company is a leading marketer and manufacturer of branded food and beverage products and pet food and pet snacks in North America. SJM’s operations are primarily U.S.-based, with additional international activities, principally in Canada.
On July 17, The J. M. Smucker Company announced that its shareholders would receive a dividend of $1.12 a share on Sept. 1. SJM has a dividend yield of 3.93%. Over the past five years, The J. M. Smucker Company has increased its dividend six times, and its payout ratio presently sits at 48% of earnings. Check The J. M. Smucker Company’s dividend history here.
PPG Industries
PPG Industries, Inc. is a global supplier of paints, coatings, chemicals, specialty materials, glass, and fiberglass. PPG has manufacturing facilities and equity affiliates in about 70 countries.
On July 16, PPG Industries declared that its shareholders would receive a dividend of $0.74 a share on Sept. 11. PPG has a dividend yield of 2.42%. Over the past five years, PPG Industries has increased its dividend six times, and its payout ratio presently sits at 37% of earnings. Check PPG Industries’ dividend history here.
South Plains Financial
South Plains Financial, Inc. is the bank holding company for City Bank, a chartered bank. SPFI provides commercial and consumer financial services to small and medium-sized businesses and individuals. South Plains Financial’s principal business activities include commercial and retail banking along with insurance, investment trust and mortgage services.
On July 16, South Plains Financial announced that its shareholders would receive a dividend of $0.18 a share on Aug. 10. SPFI has a dividend yield of 1.48%. Over the past five years, South Plains Financial has increased its dividend nine times, and its payout ratio presently sits at 19% of earnings. Check South Plains Financial’s dividend history here.
CenterPoint Energy
CenterPoint Energy, Inc. is a domestic energy delivery company that provides electric transmission and distribution, power generation, and natural gas distribution operations to more than 7 million metered customers across six states — Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas.
On July 15, CenterPoint Energy declared that its shareholders would receive a dividend of $0.24 a share on Sept. 10. CNP has a dividend yield of 2.13%. Over the past five years, CenterPoint Energy has increased its dividend eight times, and its payout ratio presently sits at 51% of earnings. Check CenterPoint Energy’s dividend history here.
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4 Stocks That Recently Hiked Dividends Amid Geopolitical Tensions
Key Takeaways
Volatility has returned to Wall Street as geopolitical tensions have resumed over the past week. Oil prices, which eased in June, are rising again, igniting fears that inflation could increase.
Amid the ongoing market uncertainty, conservative investors looking for stable income while protecting their capital may find dividend-paying stocks appealing. These stocks offer a steady stream of income through regular dividend payments and can help reduce the impact of market volatility.
Four such stocks are The J. M. Smucker Company (SJM - Free Report) , PPG Industries, Inc. (PPG - Free Report) , South Plains Financial, Inc. (SPFI - Free Report) and CenterPoint Energy, Inc. (CNP - 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.
Geopolitical Tensions Return
The United States continued its attack on Iran for the ninth straight day on Monday, as hostilities intensified. The attacks come as President Donald Trump said earlier this month that he is no longer interested in negotiations while Iran scrapped the temporary memorandum of association to end hostilities.
On Monday, oil prices rose further after Trump, in a Truth Social post, said that Iran will have to pay for the deaths of three U.S. soldiers “many more times.”
Inflation declined in June after a temporary memorandum of understanding was signed by the United States and Iran in mid-June to end hostilities. The consumer price index (CPI) fell 0.4% sequentially in June, after increasing 0.5% in May.
Year over year, CPI declined to 3.5% in June, surpassing the consensus estimate of a reading of 3.8%. The decline follows a reading of 4.2% in May. The monthly decline in CPI was the biggest since April 2020.
However, with surging oil prices, inflation could once again resume its climb. The Federal Reserve has kept interest rates unchanged this year in its current range of 3.5-3.75%. Markets are pricing in a quarter-percentage-point rate hike by the end of this year, as the Federal Reserve continues to tame sky-high inflation.
4 Stocks That Recently Announced Dividend Hikes
The J. M. Smucker Company
The J. M. Smucker Company is a leading marketer and manufacturer of branded food and beverage products and pet food and pet snacks in North America. SJM’s operations are primarily U.S.-based, with additional international activities, principally in Canada.
On July 17, The J. M. Smucker Company announced that its shareholders would receive a dividend of $1.12 a share on Sept. 1. SJM has a dividend yield of 3.93%. Over the past five years, The J. M. Smucker Company has increased its dividend six times, and its payout ratio presently sits at 48% of earnings. Check The J. M. Smucker Company’s dividend history here.
PPG Industries
PPG Industries, Inc. is a global supplier of paints, coatings, chemicals, specialty materials, glass, and fiberglass. PPG has manufacturing facilities and equity affiliates in about 70 countries.
On July 16, PPG Industries declared that its shareholders would receive a dividend of $0.74 a share on Sept. 11. PPG has a dividend yield of 2.42%. Over the past five years, PPG Industries has increased its dividend six times, and its payout ratio presently sits at 37% of earnings. Check PPG Industries’ dividend history here.
South Plains Financial
South Plains Financial, Inc. is the bank holding company for City Bank, a chartered bank. SPFI provides commercial and consumer financial services to small and medium-sized businesses and individuals. South Plains Financial’s principal business activities include commercial and retail banking along with insurance, investment trust and mortgage services.
On July 16, South Plains Financial announced that its shareholders would receive a dividend of $0.18 a share on Aug. 10. SPFI has a dividend yield of 1.48%. Over the past five years, South Plains Financial has increased its dividend nine times, and its payout ratio presently sits at 19% of earnings. Check South Plains Financial’s dividend history here.
CenterPoint Energy
CenterPoint Energy, Inc. is a domestic energy delivery company that provides electric transmission and distribution, power generation, and natural gas distribution operations to more than 7 million metered customers across six states — Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas.
On July 15, CenterPoint Energy declared that its shareholders would receive a dividend of $0.24 a share on Sept. 10. CNP has a dividend yield of 2.13%. Over the past five years, CenterPoint Energy has increased its dividend eight times, and its payout ratio presently sits at 51% of earnings. Check CenterPoint Energy’s dividend history here.