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5 Quality Stocks Set to Reward Investors With Dividend Hikes
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Key Takeaways
DRH raised its dividend to 11 cents per share, payable Oct. 14, 2026, with a 2.7% dividend yield.
STE, BCC, KWR and WHD recently announced higher dividends alongside solid payout ratios.
Recent dividend hikes come as mixed economic data keep income-focused investors cautious.
The U.S. economy has remained resilient so far this year, even though the pace of growth has slowed. Gross domestic product (GDP) expanded 1.5% in the second quarter, slowing from 2.1% in the first quarter and missing expectations. Inflation showed signs of cooling, with the Personal Consumption Expenditures (PCE) index rising 3.7% year over year in June, down from 4.1% in May, while core PCE eased to 3.3%.
Consumer spending, which drives much of the economy, rose 0.3% in June. Manufacturing offered brighter news; the ISM PMI stayed in expansion territory, climbing to 55.6 in July, its strongest reading since May 2022. Also, the Chicago PMI beat expectations, coming in at 57.6. Consumer sentiment has improved as the University of Michigan's sentiment index rose to 55.2 in July, reflecting growing confidence.
The labor market remained relatively steady, although there were hints of moderation. Weekly jobless claims increased to 197,000, while continuing claims edged lower to 1.782 million. Meanwhile, JOLTS data showed job openings slipping to 7.359 million, even as hiring improved. Personal income increased 0.2%. Despite these encouraging signs, investors still have several reasons to stay cautious.
The Federal Reserve has kept interest rates unchanged, but markets remain worried that stubborn inflation could force another rate hike later this year. Treasury yields have climbed to multi-year highs, increasing borrowing costs and putting pressure on high-growth stocks. Geopolitical tensions in the Middle East continue to create uncertainty in oil prices, although recent easing has offered some relief. At the same time, questions remain about whether AI leaders can generate enough returns to justify their rich valuations. Even so, strong corporate earnings and improving economic data have helped Wall Street recover, keeping hopes alive for a soft landing.
Amid such market conditions, cautious investors who wish to diversify their portfolios and pick dividend-paying stocks can keep a tab on some prominent names, such as DiamondRock Hospitality (DRH - Free Report) , STERIS (STE - Free Report) , Boise Cascade (BCC - Free Report) , Quaker Houghton (KWR - Free Report) and Cactus (WHD - Free Report) . Companies that pay out dividends consistently indicate a healthy business model. Stocks that have raised dividends recently exhibit a sound financial structure and can counter market upheavals. Moreover, stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying entities in a highly volatile market.
DiamondRock Hospitality
DiamondRock Hospitality is a self-advised real estate company that owns, acquires and invests in upper upscale and upscale hotel properties located primarily in North America. This Zacks Rank #3 (Hold) company is based in Bethesda, MD. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On July 30, DRH declared that its shareholders would receive a dividend of 11 cents a share on Oct. 14, 2026. DRH has a dividend yield of 2.7%.
STERIS is headquartered in Mentor, OH. This Zacks Rank #3 develops, manufactures and markets infection prevention, decontamination, microbial reduction, and surgical and gastrointestinal support products and services.
On July 30, STE declared that its shareholders would receive a dividend of 69 cents a share on Sept. 25, 2026. STE has a dividend yield of 1.1%.
In the past five years, STE has increased its dividend six times. Its payout ratio is currently 25% of earnings. Check STERIS’s dividend history here.
Boise Cascade is one of the largest wood products manufacturers and a leading United States wholesale distributor of building products. This Boise, ID-based company currently carries a Zacks Rank #2 (Buy).
On July 30, BCC declared that its shareholders would receive a dividend of 23 cents a share on Sept. 16, 2026. BCC has a dividend yield of 1%.
Quaker Houghton is headquartered in Conshohocken, PA. This Zacks Rank #2 company is a global developer, producer and marketer of industrial process fluids and related specialty chemicals.
On July 29, KWR declared that its shareholders would receive a dividend of 53 cents a share on Oct. 30, 2026. KWR has a dividend yield of 1.2%.
Cactus is involved in manufacturing, designing and selling wellhead and pressure control equipment. This Houston, TX-based company currently carries a Zacks Rank #2.
On July 29, WHD announced that its shareholders would receive a dividend of 15 cents a share on Sept. 11, 2026. WHD has a dividend yield of 0.8%.
Over the past five years, WHD has increased its dividend six times. Its payout ratio now sits at 19% of earnings. Check Cactus' dividend history here.
View the Zacks #1 Rank List
Image: Shutterstock
5 Quality Stocks Set to Reward Investors With Dividend Hikes
Key Takeaways
The U.S. economy has remained resilient so far this year, even though the pace of growth has slowed. Gross domestic product (GDP) expanded 1.5% in the second quarter, slowing from 2.1% in the first quarter and missing expectations. Inflation showed signs of cooling, with the Personal Consumption Expenditures (PCE) index rising 3.7% year over year in June, down from 4.1% in May, while core PCE eased to 3.3%.
Consumer spending, which drives much of the economy, rose 0.3% in June. Manufacturing offered brighter news; the ISM PMI stayed in expansion territory, climbing to 55.6 in July, its strongest reading since May 2022. Also, the Chicago PMI beat expectations, coming in at 57.6. Consumer sentiment has improved as the University of Michigan's sentiment index rose to 55.2 in July, reflecting growing confidence.
The labor market remained relatively steady, although there were hints of moderation. Weekly jobless claims increased to 197,000, while continuing claims edged lower to 1.782 million. Meanwhile, JOLTS data showed job openings slipping to 7.359 million, even as hiring improved. Personal income increased 0.2%. Despite these encouraging signs, investors still have several reasons to stay cautious.
The Federal Reserve has kept interest rates unchanged, but markets remain worried that stubborn inflation could force another rate hike later this year. Treasury yields have climbed to multi-year highs, increasing borrowing costs and putting pressure on high-growth stocks. Geopolitical tensions in the Middle East continue to create uncertainty in oil prices, although recent easing has offered some relief. At the same time, questions remain about whether AI leaders can generate enough returns to justify their rich valuations. Even so, strong corporate earnings and improving economic data have helped Wall Street recover, keeping hopes alive for a soft landing.
Amid such market conditions, cautious investors who wish to diversify their portfolios and pick dividend-paying stocks can keep a tab on some prominent names, such as DiamondRock Hospitality (DRH - Free Report) , STERIS (STE - Free Report) , Boise Cascade (BCC - Free Report) , Quaker Houghton (KWR - Free Report) and Cactus (WHD - Free Report) . Companies that pay out dividends consistently indicate a healthy business model. Stocks that have raised dividends recently exhibit a sound financial structure and can counter market upheavals. Moreover, stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying entities in a highly volatile market.
DiamondRock Hospitality
DiamondRock Hospitality is a self-advised real estate company that owns, acquires and invests in upper upscale and upscale hotel properties located primarily in North America. This Zacks Rank #3 (Hold) company is based in Bethesda, MD. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On July 30, DRH declared that its shareholders would receive a dividend of 11 cents a share on Oct. 14, 2026. DRH has a dividend yield of 2.7%.
Over the past five years, DRH has increased its dividend five times, and its payout ratio presently sits at 30% of earnings. Check DiamondRock Hospitality's dividend history here.
DiamondRock Hospitality Company Dividend Yield (TTM)
DiamondRock Hospitality Company dividend-yield-ttm | DiamondRock Hospitality Company Quote
STERIS
STERIS is headquartered in Mentor, OH. This Zacks Rank #3 develops, manufactures and markets infection prevention, decontamination, microbial reduction, and surgical and gastrointestinal support products and services.
On July 30, STE declared that its shareholders would receive a dividend of 69 cents a share on Sept. 25, 2026. STE has a dividend yield of 1.1%.
In the past five years, STE has increased its dividend six times. Its payout ratio is currently 25% of earnings. Check STERIS’s dividend history here.
STERIS plc Dividend Yield (TTM)
STERIS plc dividend-yield-ttm | STERIS plc Quote
Boise Cascade
Boise Cascade is one of the largest wood products manufacturers and a leading United States wholesale distributor of building products. This Boise, ID-based company currently carries a Zacks Rank #2 (Buy).
On July 30, BCC declared that its shareholders would receive a dividend of 23 cents a share on Sept. 16, 2026. BCC has a dividend yield of 1%.
Over the past five years, BCC has increased its dividend nine times, and its payout ratio presently sits at 28% of earnings. Check Boise Cascade’s dividend history here.
Boise Cascade, L.L.C. Dividend Yield (TTM)
Boise Cascade, L.L.C. dividend-yield-ttm | Boise Cascade, L.L.C. Quote
Quaker Houghton
Quaker Houghton is headquartered in Conshohocken, PA. This Zacks Rank #2 company is a global developer, producer and marketer of industrial process fluids and related specialty chemicals.
On July 29, KWR declared that its shareholders would receive a dividend of 53 cents a share on Oct. 30, 2026. KWR has a dividend yield of 1.2%.
In the past five years, KWR has increased its dividend six times. Its payout ratio is currently 27% of earnings. Check Quaker Houghton’s dividend history here.
Quaker Houghton Dividend Yield (TTM)
Quaker Houghton dividend-yield-ttm | Quaker Houghton Quote
Cactus
Cactus is involved in manufacturing, designing and selling wellhead and pressure control equipment. This Houston, TX-based company currently carries a Zacks Rank #2.
On July 29, WHD announced that its shareholders would receive a dividend of 15 cents a share on Sept. 11, 2026. WHD has a dividend yield of 0.8%.
Over the past five years, WHD has increased its dividend six times. Its payout ratio now sits at 19% of earnings. Check Cactus' dividend history here.
Cactus, Inc. Dividend Yield (TTM)
Cactus, Inc. dividend-yield-ttm | Cactus, Inc. Quote