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The Zacks Analyst Blog Highlights Virco, Brady, Broadcom and Verizon

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For Immediate Release

Chicago, IL – September 12, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Virco Mfg. Corp. (VIRC - Free Report) , Brady Corp. (BRC - Free Report) , Broadcom Inc. (AVGO - Free Report) and Verizon Communications Inc. (VZ - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

4 Stocks Announce Dividend Hikes Amid Market Volatility

Major indexes have remained volatile over the past couple of weeks to begin a tricky September. Soft economic data released last week raised fresh concerns over the economy’s health. This has been taking a toll on stocks.

The Federal Reserve is expected to begin its rate cuts this month but volatility could continue in the coming weeks. Also, September has historically been one of the worst months for stocks. Given this situation, cautious investors looking for a steady income and preservation of their capital may want to continue holding or buying dividend-paying stocks. Four such stocks are Virco Mfg. Corp., Brady Corp., Broadcom Inc. and Verizon Communications Inc.

Weak Economic Data Dampen Stock Performance

Markets made a solid rebound in August after an early selloff triggered by fears of a softening economy. However, the fears were reignited last week following the release of a softer-than-expected August jobs data.

Private payrolls rose by only 142,000 in August, lower than the consensus estimate of an increase of 161,000. Although the unemployment rate fell to 4.2% in August after increasing to 4.3% in July, concerns have grown over a cooling labor market.

Also, the manufacturing sector has continued to struggle. The Institute of Supply Management (ISM) manufacturing index declined for the fifth straight month in August.

This saw all three major indexes taking a hit last week. The S&P 500 declined 4.3% for the week to record its worst week since March 2023. The Nasdaq ended the week 5.8% lower, its worst weekly performance since 2022, while the Dow closed 2.9% lower.

Rate Cuts Coming But Uncertainty Remains

Inflation has declined substantially over the past few months, with the Federal Reserve finally set to start its easing cycle. Market participants are confident that the Fed will cut rates by 25 basis points in its FOMC meeting scheduled Sept. 17-18. Many are even hopeful about a 50-basis point rate cut.

However, the Federal Reserve hasn’t signaled anything about the extent of the interest rate cut. Also, the nation is less than two months away from the Presidential election, which will take place on Nov. 5.

Markets have historically remained volatile in the two months leading to the Presidential election. The S&P 500 has suffered during this time since 2008, with an average negative return of 5.8%.

September has historically been the toughest month for Wall Street, with stocks often lagging. Since 1950, the S&P 500 has seen its worst performance in September. Experts attribute this to investors returning from summer vacations and making adjustments to their portfolios, which usually leads to selling and puts downward pressure on the markets.

Dividend Stocks That Recently Announced Hikes

Given this situation, it would thus be ideal to invest in dividend stocks. These companies, with their solid operations, consistently deliver dividends and stay profitable thanks to their dependable business models. In a market with high volatility, companies that provide substantial dividend payouts often perform better than those that do not offer dividends.

Virco Mfg. Corp.

Virco Mfg. Corporation designs, produces and distributes quality furniture for the contract and education markets worldwide. Examples of facilities served by VIRC include public and private schools, colleges and universities, convention centers, federal and state institutions, churches and other businesses. Virco Mfg has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On Monday, Virco Mfg announced that its shareholders would receive a dividend of $0.03 a share on Oct. 11, 2024. VIRC has a dividend yield of 0.61%. Over the past five years, Virco Mfg has increased its dividend two times, and its payout ratio at present sits at 5% of earnings.Check Virco Mfg’s dividend history here.

Virco Manufacturing Corporation dividend-yield-ttm | Virco Manufacturing Corporation Quote

Brady Corporation

Brady Corporation is a world leader in complete identification solutions that help companies improve productivity, performance, safety and security. BRC’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Brady Corporation carries a Zacks Rank #2 (Buy).

On Sept. 5, Brady Corporation declared that its shareholders would receive a dividend of $0.24 a share on Oct. 31, 2024. BRC has a dividend yield of 1.29%. Over the past five years, Brady Corporation has increased its dividend six times, and its payout ratio at present sits at 22% of earnings. Check Brady Corporation’s dividend history here.

Brady Corporation dividend-yield-ttm | Brady Corporation Quote

Broadcom Inc.

Broadcom Inc. is a premier designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor-based devices and products based on analog III-V.

AVGO’s semiconductor solutions are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom has a Zacks Rank #3.

On Sept. 5, Broadcom announced that its shareholders would receive a dividend of $0.53 a share on Sept. 30. AVGO has a dividend yield of 1.49%. Over the past five years, Broadcom has increased its dividend six times, and its payout ratio at present sits at 56% of earnings. Check Broadcom’s dividend history here.

Broadcom Inc. dividend-yield-ttm | Broadcom Inc. Quote

Verizon Communications Inc

Verizon Communications Inc. offers communication services in the form of local phone service, long distance, wireless and data services. VZ has a Zacks Rank #3.

On Sept. 4, Verizon Communications announced that its shareholders would receive a dividend of $0.68 a share on Nov. 1. VZ has a dividend yield of 6.23%. Over the past five years, Verizon Communications has increased its dividend six times, and its payout ratio at present sits at 58% of earnings. Check Verizon Communications’ dividend history here.

Verizon Communications Inc. dividend-yield-ttm | Verizon Communications Inc. Quote

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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