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5 Dividend-Paying Stocks to Watch as Market Volatility Rises

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Key Takeaways

  • A. O. Smith, Lockheed Martin, Avient, Eni and Accenture offer dividend income amid market volatility.
  • Accenture leads the group with a 3.2% dividend yield, followed by Eni at 2.9% and Avient at 2.8%.
  • Eni raised its dividend 11 times in five years, while A. O. Smith and Lockheed Martin did so six times.

The U.S. economy held firm in October, though early signs of strain are becoming visible underneath. Consumer demand remains relatively strong, with the services Purchasing Managers’ Index (PMI) at 54.9 in September, indicating continued expansion. Weekly jobless claims fell to 197,000, suggesting that layoffs remain limited. However, consumer confidence fell to 46.3 in October from 48.1 in September, signaling growing household worries. The U.S. trade deficit also widened to $105.6 billion in August, reflecting strong imports but raising concerns about inflationary pressure.

For investors, the biggest concern is the combination of rising energy prices, persistent inflation, and tighter monetary policy. Brent crude climbed to $106.65 per barrel amid Middle East attacks, threatening to push inflation higher and keep the Federal Reserve’s interest rates elevated. Fed officials are divided over whether further tightening is needed, adding uncertainty to the market outlook. This could put pressure on borrowing, housing, and stock valuations, particularly in technology and AI-related sectors. Investors will closely watch upcoming inflation data, third-quarter earnings, and Fed signals to determine whether economic strength can withstand these growing headwinds.

In 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 A. O. Smith (AOS - Free Report) , Lockheed Martin (LMT - Free Report) , Avient (AVNT - Free Report) , Eni (E - Free Report)  and Accenture (ACN - 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.

A. O. Smith

A. O. Smith is one of the leading manufacturers of commercial and residential water heating equipment and water treatment products in the world. This Zacks Rank #3 (Hold) company is headquartered in Milwaukee, WI. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

On Oct. 12, AOS declared that its shareholders would receive a dividend of 38 cents a share on Nov. 16, 2026. AOS has a dividend yield of 2.5%.

Over the past five years, AOS has increased its dividend six times, and its payout ratio presently sits at 39% of earnings. Check A. O. Smith's dividend history here.

Lockheed Martin

Lockheed Martin is based in Bethesda, MD. This Zacks Rank #3 company is one of the world’s largest aerospace and defense contractors.

On Oct. 9, LMT declared that its shareholders would receive a dividend of $3.60 a share on Dec. 31, 2026. LMT has a dividend yield of 2.7%.

In the past five years, LMT has increased its dividend six times. Its payout ratio is currently 48% of earnings. Check Lockheed Martin’s dividend history here.

Avient

Avient 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. This Avon Lake, OH-headquartered company currently carries a Zacks Rank #3.

On Oct. 6, AVNT declared that its shareholders would receive a dividend of 28 cents a share on Jan. 7, 2027. AVNT has a dividend yield of 2.8%.

Over the past five years, AVNT has increased its dividend six times, and its payout ratio presently sits at 36% of earnings. Check Avient’s dividend history here.

Avient Corporation Dividend Yield (TTM)

Avient Corporation Dividend Yield (TTM)

Avient Corporation dividend-yield-ttm | Avient Corporation Quote

Eni

Eni is headquartered in Rome, Italy. This Zacks Rank #3 integrated energy company has upstream operations that cover exploration, development and production of oil and natural gas.

On Oct. 5, E declared that its shareholders would receive a dividend of 44 cents a share on Dec. 7, 2026. E has a dividend yield of 2.9%.

In the past five years, E has increased its dividend 11 times. Its payout ratio is currently 40% of earnings. Check Eni’s dividend history here.

Eni SpA Dividend Yield (TTM)

Eni SpA Dividend Yield (TTM)

Eni SpA dividend-yield-ttm | Eni SpA Quote

Accenture

Accenture is a leading global professional services company focused on helping enterprises reinvent by building their digital core and applying AI across the organization. This Dublin, Ireland-based company currently carries a Zacks Rank #3.

On Oct. 1, ACN announced that its shareholders would receive a dividend of $1.71 a share on Nov. 13, 2026. ACN has a dividend yield of 3.2%.

Over the past five years, ACN has increased its dividend five times. Its payout ratio now sits at 47% of earnings. Check Accenture's dividend history here.

Accenture PLC Dividend Yield (TTM)

Accenture PLC Dividend Yield (TTM)

Accenture PLC dividend-yield-ttm | Accenture PLC Quote

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