The domestic macroeconomic scenario in the United States is favorable after the Federal Reserve’s interest-rate easing, declining inflation numbers, and resilient labor market. If future incoming data remains favorable the Fed plans to gradually bring back the key interest rates to the 2.75-3% range by 2026.  However, investors are more worried about the Middle East conflict. The growing war situation hasdisrupted the global supply chain and pushed oil prices higher.

Amid such volatile market conditions, investors who wish to diversify their portfolio can invest in dividend-paying stocks. 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. Some of the prominent names are RPM International (RPM Quick QuoteRPM - Free Report) , Lockheed Martin (LMT Quick QuoteLMT - Free Report) , Bank OZK (OZK Quick QuoteOZK - Free Report) and American Financial Group (AFG Quick QuoteAFG - Free Report) .

Middle East Tensions Drive Crude Oil Prices

Crude oil prices surged due to rising tensions in the Middle East over the past week. The growing concerns on how Israel would respond to Iran's missile strikes have led to an increase, in crude oil prices. Higher energy prices for an extended period raise the possibility of an increase in petrol, gas, and electricity bills, pushing up the inflation rate.

U.S. Predental Election Ahead

All eyes are on the upcoming U.S. Presidential Election which is scheduled for next months. Amid the tussle between Republicans and Democrats, stock markets could enter one of its most volatile periods over the years and witness a variety of policy changes.

Dividend Stocks to Watch: RPM, LMT, OZK, AFG

Given the high volatility in the market, stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.

RPM International

RPM International manufactures and markets high-performance coatings, sealants and specialty chemicals, primarily for maintenance and improvement applications. This Medina, OH-based company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

On Oct. 3, RPM declared that its shareholders would receive a dividend of 51 cents a share on Oct. 31, 2024. RPM has a dividend yield of 1.4%.

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

Lockheed Martin

Lockheed Martin is headquartered in Bethesda, MD. This Zacks Rank #3 company is the largest defense contractor in the world.

On Oct. 2, LMT declared that its shareholders would receive a dividend of $3.30 a share on Dec. 27, 2024. LMT has a dividend yield of 2.1%.

In the past five years, LMT has increased its dividend six times. Its payout ratio at present sits at 45% of earnings. Check Lockheed Martin’s dividend history here.

Bank OZK

Bank OZK is a bank holding company that offers a wide range of retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. The Zacks Rank #3 company is headquartered in Little Rock, AR.               

On Oct. 1, OZK announced that its shareholders would receive a dividend of 41 cents a share on Oct 18, 2024. OZK has a dividend yield of 3.8%.

Over the past five years, OZK has increased its dividend 21 times. Its payout ratio now sits at 26% of earnings. Check Bank OZK's dividend history here.

American Financial Group

American Financial Group engages primarily in property and casualty insurance, with focus on specialized commercial products for businesses. This Cincinnati, OH-based company currently carries a Zacks Rank #3.

On Oct. 1, AFG declared that its shareholders would receive a dividend of 80 cents a share on Oct. 25, 2024. AFG has a dividend yield of 2.1%.

Over the past five years, AFG has increased its dividend 16 times, and its payout ratio presently sits at 27% of earnings. Check American Financial Group’s dividend history here.