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Wall Street’s impressive bull run for the last 15 months has been facing severe hurdles in April. Historically, this month is known as being favorable to equity investors. However, this year it is turning out to be different. Month to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have tumbled 3.4%, 3.5% and 4.1%, respectively.
On Apr 19, both the S&P 500 and the Nasdaq Composite recorded the sixth-straight days of negative closing, the longest losing streak for both benchmarks since October 2022. Last week, the S&P 500 fell more than 3%, marking its third straight negative week.
The Nasdaq Composite plunged 5.5%, reflecting the tech-heavy index’s fourth straight declining week, its longest negative streak since December 2022. Last week, the tech-laden index posted its worst week since November 2022.
The sticky inflation rate pushed investors’ expectations to June. Following the release of the March CPI data, the CME FedWatch shows just a 15% chance of a rate cut in June. The majority of respondents are now expecting the first reduction of the benchmark lending rate in September. What is more important is that 16% of respondents are expecting no rate cut in 2024.
Stocks in Focus
At this stage, dividend-paying stocks should be in demand as investors try to safeguard their portfolios. We believe one should consider stocks that have recently raised their dividend payments.
Johnson & Johnson’s Innovative Medicine unit is performing at above-market levels. JNJ’s growth is being driven by existing products like Darzalex, Stelara, Tremfya and Erleada, and by the continued uptake of new launches, including Spravato, Carvykti and Tecvayli.
JNJ’s MedTech unit is showing improving trends, driven by a recovery in surgical procedures and contribution from new products. Johnson & Johnson is making rapid progress with its pipeline and line extensions. JNJ currently carries a Zacks Rank #3 (Hold).
On Apr 16, 2024, Johnson & Johnson declared that its shareholders would receive a dividend of $1.24 per share on Jun 4, 2024. It has a dividend yield of 3.4%. Over the past five years, JNJ has increased its dividend six times, and its payout ratio presently stays at 46% of earnings. Check JNJ’s dividend history here.
The Travelers Companies boasts a strong market presence in auto, homeowners’ insurance and commercial U.S. property-casualty insurance with solid inorganic growth. A high retention rate, a rise in new business and positive renewal premium change bode well. TRV’s commercial businesses should perform well owing to market stability.
TRV remains optimistic about the personal line of business, given growth at profitable agencies like auto and homeowners businesses. Strong and reliable returns from the growing fixed-income portfolio should drive net investment income. Sufficient capital boosts shareholder value. TRV aims for a mid-teens core return on equity over time. TRV currently carries a Zacks Rank #3.
On Apr 17, 2024, The Travelers Companies declared that its shareholders would receive a dividend of $1.05 per share on Jun 28, 2024. It has a dividend yield of 2.1%. Over the past five years, TRV has increased its dividend six times, and its payout ratio presently stays at 29% of earnings. Check TRV’s dividend history here.
The Travelers Companies, Inc. Dividend Yield (TTM)
Sonoco Products has benefited from the Ball Metalpack acquisition and strong recovery in price across most of its businesses will help somewhat offset these headwinds. SON’s ongoing focus on increasing investment in its core consumer and industrial businesses will aid growth in the upcoming quarters. SON’s recent acquisitions will also aid its performance. SON currently carries a Zacks Rank #3.
On Apr 17, 2024, Sonoco Products declared that its shareholders would receive a dividend of $0.52 per share on Jun 10, 2024. It has a dividend yield of 3.7%. Over the past five years, SON has increased its dividend five times, and its payout ratio presently stays at 39% of earnings. Check SON’s dividend history here.
KB Home saw a 9% increase in homes delivered year over year in first-quarter 2024. KBH has been further benefiting from its intent focus on implementing the built-to-order model, reducing cycle times and offering various forms of mortgage concessions. Owing to these tailwinds, KBH witnessed 55% year-over-year net orders growth in the last quarter. KBH currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On Apr 18, 2024, KB Home declared that its shareholders would receive a dividend of $0.25 per share on May 23, 2024. It has a dividend yield of 1.3%. Over the past five years, KBH has increased its dividend five times, and its payout ratio presently stays at 11% of earnings. Check KBH’s dividend history here.
South Plains Financial is the bank holding company for City Bank, a chartered bank. SPFI provides commercial and consumer financial services to small and mid-sized businesses and individuals. SPFI’s principal business activities include commercial and retail banking along with insurance, investment trust and mortgage services. SPFI currently carries a Zacks Rank #3.
On Apr 18, 2024, South Plains Financial declared that its shareholders would receive a dividend of $0.14 per share on May 13, 2024. It has a dividend yield of 2.2%. Over the past five years, SPFI has increased its dividend seven times, and its payout ratio presently stays at 21% of earnings. Check SPFI’s dividend history here.
Image: Shutterstock
5 Stocks in Focus on Their Recent Dividend Hike
Wall Street’s impressive bull run for the last 15 months has been facing severe hurdles in April. Historically, this month is known as being favorable to equity investors. However, this year it is turning out to be different. Month to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have tumbled 3.4%, 3.5% and 4.1%, respectively.
On Apr 19, both the S&P 500 and the Nasdaq Composite recorded the sixth-straight days of negative closing, the longest losing streak for both benchmarks since October 2022. Last week, the S&P 500 fell more than 3%, marking its third straight negative week.
The Nasdaq Composite plunged 5.5%, reflecting the tech-heavy index’s fourth straight declining week, its longest negative streak since December 2022. Last week, the tech-laden index posted its worst week since November 2022.
The sticky inflation rate pushed investors’ expectations to June. Following the release of the March CPI data, the CME FedWatch shows just a 15% chance of a rate cut in June. The majority of respondents are now expecting the first reduction of the benchmark lending rate in September. What is more important is that 16% of respondents are expecting no rate cut in 2024.
Stocks in Focus
At this stage, dividend-paying stocks should be in demand as investors try to safeguard their portfolios. We believe one should consider stocks that have recently raised their dividend payments.
Five such companies are — Johnson & Johnson (JNJ - Free Report) , The Travelers Companies Inc. (TRV - Free Report) , Sonoco Products Co. (SON - Free Report) , KB Home (KBH - Free Report) and South Plains Financial Inc. (SPFI - Free Report) .
Johnson & Johnson’s Innovative Medicine unit is performing at above-market levels. JNJ’s growth is being driven by existing products like Darzalex, Stelara, Tremfya and Erleada, and by the continued uptake of new launches, including Spravato, Carvykti and Tecvayli.
JNJ’s MedTech unit is showing improving trends, driven by a recovery in surgical procedures and contribution from new products. Johnson & Johnson is making rapid progress with its pipeline and line extensions. JNJ currently carries a Zacks Rank #3 (Hold).
On Apr 16, 2024, Johnson & Johnson declared that its shareholders would receive a dividend of $1.24 per share on Jun 4, 2024. It has a dividend yield of 3.4%. Over the past five years, JNJ has increased its dividend six times, and its payout ratio presently stays at 46% of earnings. Check JNJ’s dividend history here.
Johnson & Johnson Dividend Yield (TTM)
Johnson & Johnson dividend-yield-ttm | Johnson & Johnson Quote
The Travelers Companies boasts a strong market presence in auto, homeowners’ insurance and commercial U.S. property-casualty insurance with solid inorganic growth. A high retention rate, a rise in new business and positive renewal premium change bode well. TRV’s commercial businesses should perform well owing to market stability.
TRV remains optimistic about the personal line of business, given growth at profitable agencies like auto and homeowners businesses. Strong and reliable returns from the growing fixed-income portfolio should drive net investment income. Sufficient capital boosts shareholder value. TRV aims for a mid-teens core return on equity over time. TRV currently carries a Zacks Rank #3.
On Apr 17, 2024, The Travelers Companies declared that its shareholders would receive a dividend of $1.05 per share on Jun 28, 2024. It has a dividend yield of 2.1%. Over the past five years, TRV has increased its dividend six times, and its payout ratio presently stays at 29% of earnings. Check TRV’s dividend history here.
The Travelers Companies, Inc. Dividend Yield (TTM)
The Travelers Companies, Inc. dividend-yield-ttm | The Travelers Companies, Inc. Quote
Sonoco Products has benefited from the Ball Metalpack acquisition and strong recovery in price across most of its businesses will help somewhat offset these headwinds. SON’s ongoing focus on increasing investment in its core consumer and industrial businesses will aid growth in the upcoming quarters. SON’s recent acquisitions will also aid its performance. SON currently carries a Zacks Rank #3.
On Apr 17, 2024, Sonoco Products declared that its shareholders would receive a dividend of $0.52 per share on Jun 10, 2024. It has a dividend yield of 3.7%. Over the past five years, SON has increased its dividend five times, and its payout ratio presently stays at 39% of earnings. Check SON’s dividend history here.
Sonoco Products Company Dividend Yield (TTM)
Sonoco Products Company dividend-yield-ttm | Sonoco Products Company Quote
KB Home saw a 9% increase in homes delivered year over year in first-quarter 2024. KBH has been further benefiting from its intent focus on implementing the built-to-order model, reducing cycle times and offering various forms of mortgage concessions. Owing to these tailwinds, KBH witnessed 55% year-over-year net orders growth in the last quarter. KBH currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On Apr 18, 2024, KB Home declared that its shareholders would receive a dividend of $0.25 per share on May 23, 2024. It has a dividend yield of 1.3%. Over the past five years, KBH has increased its dividend five times, and its payout ratio presently stays at 11% of earnings. Check KBH’s dividend history here.
KB Home Dividend Yield (TTM)
KB Home dividend-yield-ttm | KB Home Quote
South Plains Financial is the bank holding company for City Bank, a chartered bank. SPFI provides commercial and consumer financial services to small and mid-sized businesses and individuals. SPFI’s principal business activities include commercial and retail banking along with insurance, investment trust and mortgage services. SPFI currently carries a Zacks Rank #3.
On Apr 18, 2024, South Plains Financial declared that its shareholders would receive a dividend of $0.14 per share on May 13, 2024. It has a dividend yield of 2.2%. Over the past five years, SPFI has increased its dividend seven times, and its payout ratio presently stays at 21% of earnings. Check SPFI’s dividend history here.
South Plains Financial, Inc. Dividend Yield (TTM)
South Plains Financial, Inc. dividend-yield-ttm | South Plains Financial, Inc. Quote