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4 Solid Stocks to Buy That Recently Declared Dividend Hikes

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Volatility has returned to Wall Street this year, with investors’ confidence getting dented by concerns over the economy’s future. President Donald Trump’s return to the White House lifted investors’ sentiment for a while, but the euphoria has faded as fears of a trade war have escalated over the past week.

Given this situation, cautious investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Four such stocks are Hanmi Financial Corporation (HAFC - Free Report) , Hancock Whitney Corporation (HWC - Free Report) , CMS Energy Corporation (CMS - Free Report) and FirstService Corporation (FSV - Free Report) .

Multiple Factors Denting Investors’ Sentiment

Earlier this week, Trump announced 25% tariffs on Canadian and Mexican imports and 10% on Chinese goods. Stocks immediately took a hit on fears of an impending trade war as both Canada and Mexico announced retaliatory tariffs.

The tariffs have since been halted for 30 days following negotiations, which helped the markets rebound. However, the fears are far from over, and investors are now waiting to see Trump’s next step after the one-month hold is over.

Also, inflation rose in the final months of 2024, and the Federal Reserve, which already indicated a cautious approach with its easing policy, kept interest rates unaltered in its January FOMC meeting after cutting rates by 100 basis points on three consecutive occasions since September.

Investors are now worried that if inflation doesn’t slow, the Fed will hold its benchmark policy rate at its current range of 4.25-4.5% for a longer period. Markets are now pricing in an 85.5% chance of the Federal Reserve keeping interest rates unchanged in its March policy meeting.  Higher borrowing rates could keep markets volatile for a longer period.

4 Stocks That Recently Announced Dividend Hikes

Considering the current situation, investing in dividend-paying stocks may be a wise decision. These companies typically maintain stability, regularly paying dividends while remaining profitable through sound business practices. In a volatile market, businesses that offer substantial dividend payouts tend to perform better than those that do not.

Hanmi Financial Corporation

Hanmi Financial Corporation is the holding company for Hanmi Bank, one of the leading banks providing services to the multi-ethnic communities of Southern California with full-service offices. HAFC is a business bank conducting a general community banking business, with its primary market encompassing multi-ethnic small business customers. Hanmi Financial Corporation presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

On Feb. 6, Hanmi Financial Corporation announced that its shareholders would receive a dividend of $0.27 a share on Feb. 26. HAFC has a dividend yield of 4.05%. Over the past five years, Hanmi Financial Corporation has increased its dividend seven times, and its payout ratio at present sits at 49% of earnings.Check Hanmi Financial Corporation’s dividend history here.

Hancock Whitney Corporation

Hancock Whitney Corporation is a bank and financial holding company. HWC operates through 180 full-service bank branches and 223 automated teller machines (ATMs) across the states of Mississippi, Alabama, Louisiana, Florida and Texas. HWC currently has a Zacks Rank #1.

On Feb. 6, Hancock Whitney Corporation declared that its shareholders would receive a dividend of $0.45 a share on March 17. HWC has a dividend yield of 2.64%. Over the past five years, Hancock Whitney Corporation has increased its dividend three times, and its payout ratio at present sits at 30% of earnings. Check Hancock Whitney Corporation’s dividend history here.

CMS Energy Corporation

CMS Energy Corporation is an energy company. CMS is the parent holding company of Consumers, an electric and gas utility, and NorthStar Clean Energy, a primarily domestic independent power producer and marketer. CMS currently carries a Zacks Rank #2.

On Feb. 6, CMS Energy Corporation announced that its shareholders would receive a dividend of $0.54 a share on Feb. 28. HWC has a dividend yield of 3.07%. Over the past five years, CMS Energy Corporation has increased its dividend six times, and its payout ratio at present sits at 59% of earnings. Check CMS Energy Corporation’s dividend history here.

FirstService Corporation

FirstService Corporation offers property services to commercial, institutional and residential customers primarily in North America and internationally. FSV’s operating segment consists of Commercial Real Estate Services, Residential Real Estate Services and Property Services. FSV currently carries a Zacks Rank #2.

On Feb. 4, FirstService Corporation declared that its shareholders would receive a dividend of $0.28 a share on April 7. FSV has a dividend yield of 0.57%. Over the past five years, FirstService Corporation has increased its dividend six times, and its payout ratio at present sits at 23% of earnings. Check FirstService Corporation’s dividend history here.


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