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4 Stocks in Focus That Announced Dividend Hikes Recently
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Wall Street is on a rally, with all three major indexes hitting new all-time closing highs. On Jul 10, the S&P 500 and the Nasdaq closed at fresh record highs of 5,633.91 and 18,647.45 points, respectively.
The rally follows impressive economic data that shows a decline in inflation and a cooling labor market. The consumer price index (CPI) remained unchanged month over month in May after rising 0.3% in April. May’s reading was also 0.1% lower than the consensus estimate and the softest reading since July 2022.
Year over year, CPI increased 3.3%, falling short of analysts’ expectations of a rise of 3.4%.
Inflation has declined sharply over the past year after the Federal Reserve adopted an aggressive monetary policy and hiked interest rates by 525 basis points. However, inflation remains higher than the Federal Reserve’s 2% target, which has made it delay its planned rate cuts.
The Federal Reserve also said last month that there will likely be only one 25 basis point rate cut this year, which is sharply lower than the three projected in March.
Also, consumer sentiment is hitting rock bottom. The Michigan Consumer Sentiment Index hit a seven-month low in June. The overall index of consumer sentiment fell to 65.6 in June after declining to 69.1 in May as consumers remain concerned about inflation price pressures.
Stocks to Watch
Given this situation, investors looking for a steady income and capital preservation should consider dividend stocks. These companies have stable operations, regularly pay dividends, and sustain profitability due to their dependable business models. In volatile markets, high-dividend stocks generally perform better than non-dividend stocks.
Cummins Inc. is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. CMI offers products to original equipment manufacturers (OEMs), distributors and dealers through a network of roughly 600 company-owned and independent distributor facilities in over 9,000 dealer locations in more than 190 countries and territories.
On Jul 9, Cummins declared that its shareholders would receive a dividend of $1.82 a share on Sep 5, 2024. CMI has a dividend yield of 2.50%. Over the past five years, Cummins has increased its dividend six times, and its payout ratio at present sits at 35% of earnings. Check Cummins Inc’s dividend history here.
The Kroger Co. which operates in the thin-margin grocery industry, has been undergoing a complete makeover, not only with respect to products but also in terms of the way consumers prefer shopping grocery. KR is focusing on plant-based products as well as eyeing technological expansion.
On Jun 27, The Kroger Co announced that its shareholders would receive a dividend of $0.32 a share on Sep 1, 2024. KR has a dividend yield of 2.24%. Over the past five years, The Kroger Co has increased its dividend six times, and its payout ratio at present sits at 25% of earnings. Check The Kroger Co’s dividend history here.
Lindsay Corporation provides a variety of proprietary water management, and road infrastructure products and services. LNN has been operating since 1955 and is one of the pioneers in the automated irrigation industry.
On Jun 28, Lindsay Corporation declared that its shareholders would receive a dividend of $0.36 a share on Aug 30, 2024. LNN has a dividend yield of 1.28%. Over the past five years, Lindsay Corporation has increased its dividend five times, and its payout ratio at present sits at 23% of earnings. Check Lindsay Corporation’s dividend history here.
Matson, Inc. operates as an ocean transportation and logistics company. MATX offers shipping services in Hawaii, Guam and Micronesia islands and expedited service from China to southern California. Matson has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On Jun 27, Matson announced that its shareholders would receive a dividend of $0.34 a share on Sep 5, 2024. MATX has a dividend yield of 1.28%. Over the past five years, Matson has increased its dividend six times, and its payout ratio at present sits at 15% of earnings. Check Matson’s dividend history here.
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4 Stocks in Focus That Announced Dividend Hikes Recently
Wall Street is on a rally, with all three major indexes hitting new all-time closing highs. On Jul 10, the S&P 500 and the Nasdaq closed at fresh record highs of 5,633.91 and 18,647.45 points, respectively.
The rally follows impressive economic data that shows a decline in inflation and a cooling labor market. The consumer price index (CPI) remained unchanged month over month in May after rising 0.3% in April. May’s reading was also 0.1% lower than the consensus estimate and the softest reading since July 2022.
Year over year, CPI increased 3.3%, falling short of analysts’ expectations of a rise of 3.4%.
Inflation has declined sharply over the past year after the Federal Reserve adopted an aggressive monetary policy and hiked interest rates by 525 basis points. However, inflation remains higher than the Federal Reserve’s 2% target, which has made it delay its planned rate cuts.
The Federal Reserve also said last month that there will likely be only one 25 basis point rate cut this year, which is sharply lower than the three projected in March.
Also, consumer sentiment is hitting rock bottom. The Michigan Consumer Sentiment Index hit a seven-month low in June. The overall index of consumer sentiment fell to 65.6 in June after declining to 69.1 in May as consumers remain concerned about inflation price pressures.
Stocks to Watch
Given this situation, investors looking for a steady income and capital preservation should consider dividend stocks. These companies have stable operations, regularly pay dividends, and sustain profitability due to their dependable business models. In volatile markets, high-dividend stocks generally perform better than non-dividend stocks.
Four such stocks are Cummins Inc. (CMI - Free Report) , The Kroger Co. (KR - Free Report) , Lindsay Corporation (LNN - Free Report) and Matson, Inc. (MATX - Free Report) .
Cummins Inc. is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. CMI offers products to original equipment manufacturers (OEMs), distributors and dealers through a network of roughly 600 company-owned and independent distributor facilities in over 9,000 dealer locations in more than 190 countries and territories.
On Jul 9, Cummins declared that its shareholders would receive a dividend of $1.82 a share on Sep 5, 2024. CMI has a dividend yield of 2.50%. Over the past five years, Cummins has increased its dividend six times, and its payout ratio at present sits at 35% of earnings. Check Cummins Inc’s dividend history here.
The Kroger Co. which operates in the thin-margin grocery industry, has been undergoing a complete makeover, not only with respect to products but also in terms of the way consumers prefer shopping grocery. KR is focusing on plant-based products as well as eyeing technological expansion.
On Jun 27, The Kroger Co announced that its shareholders would receive a dividend of $0.32 a share on Sep 1, 2024. KR has a dividend yield of 2.24%. Over the past five years, The Kroger Co has increased its dividend six times, and its payout ratio at present sits at 25% of earnings. Check The Kroger Co’s dividend history here.
Lindsay Corporation provides a variety of proprietary water management, and road infrastructure products and services. LNN has been operating since 1955 and is one of the pioneers in the automated irrigation industry.
On Jun 28, Lindsay Corporation declared that its shareholders would receive a dividend of $0.36 a share on Aug 30, 2024. LNN has a dividend yield of 1.28%. Over the past five years, Lindsay Corporation has increased its dividend five times, and its payout ratio at present sits at 23% of earnings. Check Lindsay Corporation’s dividend history here.
Matson, Inc. operates as an ocean transportation and logistics company. MATX offers shipping services in Hawaii, Guam and Micronesia islands and expedited service from China to southern California. Matson has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On Jun 27, Matson announced that its shareholders would receive a dividend of $0.34 a share on Sep 5, 2024. MATX has a dividend yield of 1.28%. Over the past five years, Matson has increased its dividend six times, and its payout ratio at present sits at 15% of earnings. Check Matson’s dividend history here.