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3 Stocks in Focus That Hiked Dividends Amid Ongoing Market Volatility

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Key Takeaways

  • AVNT announced a $0.28 dividend payable Jan. 7, yielding 2.68%, after six hikes in five years.
  • OZK declared a $0.49 dividend payable Oct. 20, yielding 4.41%, after 21 hikes in five years.
  • AFG announced a $0.97 dividend payable Oct. 23, yielding 2.53%, after 17 hikes in five years.

Wall Street has been gripped by volatility. A surge in crude prices amid ongoing tensions in the Middle East and fears of another rate hike by the Federal Reserve have dented investors’ confidence.

Inflation remains a major challenge for the Federal Reserve, and investors believe the situation could worsen if the U.S.-Iran war continues for a longer period.

With market uncertainty continuing, conservative investors seeking reliable income and some cushion against volatility may want to explore dividend-paying stocks.

These stocks can generate a regular income stream through consistent payouts while potentially offering greater stability during turbulent market conditions. Here are three dividend stocks worth considering: Avient Corporation (AVNT - Free Report) , Bank OZK (OZK - Free Report) and  American Financial Group, Inc. (AFG - Free Report) .

Inflation, Geopolitical Tensions Rattle Wall Street

Markets have stayed volatile over the past several months as concerns over rising inflation and a weakening economy continue to unsettle investors. Oil prices have remained mostly high since February, after war broke out between the United States and Iran.

Since then, there has been little progress in peace talks, as both the warring nations have continued attacks on each other. The Federal Reserve was already struggling to bring inflation under control, and a surge in oil prices worsened the situation.

The Federal Reserve finally hiked interest rates by a quarter percentage point in its September policy meeting, but inflation remains sharply higher than its 2% target. Fears grew further this week after President Donald Trump said that he has no plans to reach a deal with Iran to end the war, as the United States is reportedly gearing up to carry out massive attacks in the Middle East

Investors are now worried that another interest rate hike by the Fed in its October policy meeting could put further pressure on their spending power. Higher borrowing costs could weigh on the broader economy as consumers will struggle to make purchases. These fears could keep markets volatile for a longer period.

3 Stocks That Recently Announced Dividend Hikes

Avient Corporation

Avient Corporation is a global specialty-materials company focused on color, additives, inks, engineered polymers, advanced composites and performance fibers, combining materials science, formulation expertise and manufacturing scale. AVNT serves consumer, packaging, defense, healthcare, industrial, transportation, building & construction, telecommunications and energy markets from 98 manufacturing sites across North America, Latin America, Europe, the Middle East and Africa and Asia. Avient Corporation carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On Oct. 6, Avient Corporation announced that its shareholders would receive a dividend of $0.28 a share on Jan. 7. AVNT has a dividend yield of 2.68%. Over the past five years, Avient Corporation has increased its dividend six times, and its payout ratio presently sits at 36% of earnings. Check Avient Corporation’s dividend history here.

Bank OZK

Bank OZK conducts operations through 267 offices in nine states, including Arkansas, Georgia, Florida, North Carolina, Texas, Tennessee, California, New York and Mississippi. OZK offers a wide range of retail and commercial banking services to businesses, individuals and non-profit and governmental entities. Bank OZK carries a Zacks Rank #3. 

On Oct. 1, Bank OZK declared that its shareholders would receive a dividend of $0.49 a share on Oct. 20. OZK has a dividend yield of 4.41%. Over the past five years, Bank OZK has increased its dividend 21 times, and its payout ratio presently sits at 31% of earnings. Check Bank OZK’s dividend history here.

American Financial Group

American Financial Group, Inc. is a holding company that, through its subsidiaries, primarily engages in property and casualty insurance. AFG focuses on specialized commercial products for businesses. American Financial Group has a Zacks Rank #3. 

On Oct. 1, American Financial Group announced that its shareholders would receive a dividend of $0.97 a share on Oct. 23. AFG has a dividend yield of 2.53%. Over the past five years, American Financial Group has increased its dividend 17 times, and its payout ratio presently sits at 30% of earnings. Check American Financial Group’s dividend history here.

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