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4 Stocks to Watch That Recently Announced Dividend Hikes
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Wall Street had a solid start to the year after a disappointing 2022 that saw all three major indexes hitting new lows. Also, favorable inflation data has been helping investors regain the lost confidence as they now feel that the economy may have a soft landing in 2023 and a recession might be avoided.
Easing inflation has also made the Fed go slow on its aggressive interest rate hike policy. The Fed increased interest rates by 25 basis points on Feb 1 to the range of 4.50% to 4.75%. This marks the highest interest rate since 2007.
Alongside the interest rate hike, Fed Chair Jerome Powell also said that the central bank finally thinks for the first time that the “deflationary process” has started. The Fed started going slow on its rate hikes in December when it increased interest rates by 50 basis points after four consecutive 75 basis point hikes.
The decision to go slow on rate hikes is definitely a good sign but the crisis is far from over, given that inflation is still at multi-year highs.
Also, on Feb 8, several Fed officials went on record saying that more interest rate hikes can be expected in 2023 as its fight to cool inflation continues. New York Fed President John Williams called a federal funds rate of something between 5.00% and 5.25% would be a “reasonable view” of what the central bank could do this year to further ease inflation. Thus, as indicated by Powell, there are few chances of rate cuts in 2023.
Given this situation, an astute investor should decide to keep an eye on dividend-paying stocks right now. This is because dividend stocks with a proven track record and a solid business plan can withstand market turbulence.
In addition to ensuring a constant flow of income, they minimize the likelihood of price swings. Additionally, during times of market volatility, dividend-paying stocks have consistently outperformed non-dividend-paying companies. Four such companies are Tractor Supply Company (TSCO - Free Report) , Primerica, Inc. (PRI - Free Report) , Yum China Holdings, Inc. (YUMC - Free Report) and Xylem Inc. (XYL - Free Report) .
Tractor Supply Company is the largest retail farm and ranch store chain in the United States. TSCO focuses on recreational farmers and ranchers as well as tradesmen and small businesses. Tractor Supply Company offers a wide array of merchandise, such as livestock, pet and animal products, maintenance products for agricultural and rural use, hardware and tools, lawn and garden power equipment, truck and towing products, and work apparel.
On Feb 8, Tractor Supply Company announced that its shareholders would receive a dividend of $1.03 a share on Mar 14, 2023. TSCO has a dividend yield of 1.58%. Over the past five years, Tractor Supply Company has increased its dividend five times and its payout ratio at present sits at 38% of earnings. Check Tractor Supply Company’s dividend history here.
Primerica, Inc. provides financial products and services. PRI assists its clients in meeting their needs for term life insurance, which it underwrites, and mutual funds, variable annuities and other financial products, which it distributes primarily on behalf of third parties. Primerica’s mission is to serve middle-income families by helping them make informed financial decisions and providing them with a strategy and means to gain financial independence.
On Feb 7, Primerica declared that its shareholders would receive a dividend of $0.65 a share on Mar 14, 2023. PRI has a dividend yield of 1.32%. Over the past five years, Primerica has increased its dividend six times and its payout ratio at present sits at 20% of earnings. Check Primerica’s dividend history here.
Yum China Holdings, Inc.’s U.S. operations are based in Texas. YUMC operates both company-owned and franchised restaurants. Yum China pays a license fee to Yum! Brands, which equals 3% of net system sales from both company-owned and franchise restaurants. The company’s brands include The KFC, Pizza Hut and Taco Bell. Yum China has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Feb 8, Yum China announced that its shareholders would receive a dividend of $0.13 a share on Mar 28, 2023. YUMC has a dividend yield of 0.79%. Over the past five years, Yum China has increased its dividend two times and its payout ratio at present sits at 50% of earnings. Check Yum China’s dividend history here.
Xylem Inc. is one of the leading providers of water solutions worldwide. XYL is involved in the full water-process cycle, including the collection, distribution and returning of water to the environment. Xylemhas a significant presence in the United States, the Asia Pacific, Europe and various other nations.
On Feb 7, Xylemannounced that its shareholders would receive a dividend of $0.33 a share on Feb 21, 2023. XYL has a dividend yield of 1.11%. Over the past five years, Xylemhas increased its dividend six times and its payout ratio at present sits at 47% of earnings. Check Xylem’s dividend history here.
Image: Bigstock
4 Stocks to Watch That Recently Announced Dividend Hikes
Wall Street had a solid start to the year after a disappointing 2022 that saw all three major indexes hitting new lows. Also, favorable inflation data has been helping investors regain the lost confidence as they now feel that the economy may have a soft landing in 2023 and a recession might be avoided.
Easing inflation has also made the Fed go slow on its aggressive interest rate hike policy. The Fed increased interest rates by 25 basis points on Feb 1 to the range of 4.50% to 4.75%. This marks the highest interest rate since 2007.
Alongside the interest rate hike, Fed Chair Jerome Powell also said that the central bank finally thinks for the first time that the “deflationary process” has started. The Fed started going slow on its rate hikes in December when it increased interest rates by 50 basis points after four consecutive 75 basis point hikes.
The decision to go slow on rate hikes is definitely a good sign but the crisis is far from over, given that inflation is still at multi-year highs.
Also, on Feb 8, several Fed officials went on record saying that more interest rate hikes can be expected in 2023 as its fight to cool inflation continues. New York Fed President John Williams called a federal funds rate of something between 5.00% and 5.25% would be a “reasonable view” of what the central bank could do this year to further ease inflation. Thus, as indicated by Powell, there are few chances of rate cuts in 2023.
Given this situation, an astute investor should decide to keep an eye on dividend-paying stocks right now. This is because dividend stocks with a proven track record and a solid business plan can withstand market turbulence.
In addition to ensuring a constant flow of income, they minimize the likelihood of price swings. Additionally, during times of market volatility, dividend-paying stocks have consistently outperformed non-dividend-paying companies. Four such companies are Tractor Supply Company (TSCO - Free Report) , Primerica, Inc. (PRI - Free Report) , Yum China Holdings, Inc. (YUMC - Free Report) and Xylem Inc. (XYL - Free Report) .
Tractor Supply Company is the largest retail farm and ranch store chain in the United States. TSCO focuses on recreational farmers and ranchers as well as tradesmen and small businesses. Tractor Supply Company offers a wide array of merchandise, such as livestock, pet and animal products, maintenance products for agricultural and rural use, hardware and tools, lawn and garden power equipment, truck and towing products, and work apparel.
On Feb 8, Tractor Supply Company announced that its shareholders would receive a dividend of $1.03 a share on Mar 14, 2023. TSCO has a dividend yield of 1.58%. Over the past five years, Tractor Supply Company has increased its dividend five times and its payout ratio at present sits at 38% of earnings. Check Tractor Supply Company’s dividend history here.
Tractor Supply Company Dividend Yield (TTM)
Tractor Supply Company dividend-yield-ttm | Tractor Supply Company Quote
Primerica, Inc. provides financial products and services. PRI assists its clients in meeting their needs for term life insurance, which it underwrites, and mutual funds, variable annuities and other financial products, which it distributes primarily on behalf of third parties. Primerica’s mission is to serve middle-income families by helping them make informed financial decisions and providing them with a strategy and means to gain financial independence.
On Feb 7, Primerica declared that its shareholders would receive a dividend of $0.65 a share on Mar 14, 2023. PRI has a dividend yield of 1.32%. Over the past five years, Primerica has increased its dividend six times and its payout ratio at present sits at 20% of earnings. Check Primerica’s dividend history here.
Primerica, Inc. Dividend Yield (TTM)
Primerica, Inc. dividend-yield-ttm | Primerica, Inc. Quote
Yum China Holdings, Inc.’s U.S. operations are based in Texas. YUMC operates both company-owned and franchised restaurants. Yum China pays a license fee to Yum! Brands, which equals 3% of net system sales from both company-owned and franchise restaurants. The company’s brands include The KFC, Pizza Hut and Taco Bell. Yum China has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Feb 8, Yum China announced that its shareholders would receive a dividend of $0.13 a share on Mar 28, 2023. YUMC has a dividend yield of 0.79%. Over the past five years, Yum China has increased its dividend two times and its payout ratio at present sits at 50% of earnings. Check Yum China’s dividend history here.
Yum China Dividend Yield (TTM)
Yum China dividend-yield-ttm | Yum China Quote
Xylem Inc. is one of the leading providers of water solutions worldwide. XYL is involved in the full water-process cycle, including the collection, distribution and returning of water to the environment. Xylemhas a significant presence in the United States, the Asia Pacific, Europe and various other nations.
On Feb 7, Xylemannounced that its shareholders would receive a dividend of $0.33 a share on Feb 21, 2023. XYL has a dividend yield of 1.11%. Over the past five years, Xylemhas increased its dividend six times and its payout ratio at present sits at 47% of earnings. Check Xylem’s dividend history here.
Xylem Inc. Dividend Yield (TTM)
Xylem Inc. dividend-yield-ttm | Xylem Inc. Quote