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3 Stocks to Watch That Announced Dividend Hikes Amid Trade War Fears

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President Donald Trump’s hefty tariffs on several trading partners of the United States have raised fears of a trade war that could push the nation’s economy into recession. A rise in inflation over the past few months has already sparked market volatility, which could last for a longer period or till investors get clarity over the impact of the tariffs.

Given the ongoing market turmoil, cautious investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Three such stocks are: Adecoagro S.A. (AGRO - Free Report) , Salesforce, Inc. (CRM - Free Report) and The TJX Companies, Inc. (TJX - Free Report) .

Trump’s Tariffs Escalate Recession Fears

Last week, Trump announced 25% tariffs on all imported cars and mini trucks in the United States, which go into effect on April 2. He also announced 25% tariffs on imported auto parts. This came as investors braced for a spate of reciprocal tariffs that will be announced over the coming days.

Trump had already announced 25% tariffs on all Canadian and Mexican imports, which also go into effect on Wednesday after a brief delay. Besides, the President has already imposed a 10% levy on Chinese imports.

Trump said that most of the reciprocal tariffs would remain in place until the end of his term. However, he added that the tariffs will be flexible and narrower in scope and he may give some countries a break from the reciprocal tariffs. 

Markets Feel the Heat

Investors are still awaiting a clearer picture of how the tariffs will impact the economy. Markets have turned volatile over the past month on fears that the move will prompt other countries to slap retaliatory tariffs, which could weigh on the economy and push it into inflation.

Higher inflation was already rattling stocks as the Federal Reserve has halted interest rate cuts this year. This came after the Fed cut interest rates by 100 basis points between September and December after inflation declined sharply in the second half of 2024.

However, the Federal Reserve has now adopted a cautious approach and is unlikely to go for a rate cut before the second half of this year or till inflation shows signs of a steady decline.

3 Stocks That Recently Announced Dividend Hikes

Given the present circumstances, investing in stocks that pay dividends could be a smart choice. Such companies usually remain stable, consistently distributing dividends while sustaining profitability through strong business strategies. In a fluctuating market, companies that provide significant dividend payments often outperform those that do not.

Adecoagro S.A.

Adecoagro S.A. is engaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation. Adecoagro has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

On March 28, Adecoagro announced that its shareholders would receive a dividend of $0.18 a share on May 16. AGRO has a dividend yield of 3.12%. Over the past five years, Adecoagro has increased its dividend six times, and its payout ratio at present sits at 17% of earnings.  Check Adecoagro’s dividend history here.

Salesforce

Salesforce, Inc. is the leading provider of on-demand Customer Relationship Management (“CRM”) software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development. CRM has a Zacks Rank #3.

On March 27, Salesforce declared that its shareholders would receive a dividend of $0.42 a share on April 24. CRM has a dividend yield of 0.60%. Over the past five years, Salesforce has increased its dividend once, and its payout ratio at present sits at 20% of earnings. Check Salesforce’s dividend history here.

The TJX Companies

The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the United States and worldwide. TJX’s broad range of assortments at varying prices helps it reach out to a broad range of consumers. In addition, The TJX Companies tries to attract consumers through a rapid turn of inventories. TJX carries a Zacks Rank #3.

On April 1, The TJX Companies announced that its shareholders would receive a dividend of $0.43 a share on June 5. TJX has a dividend yield of 1.23%. Over the past five years, The TJX Companies has increased its dividend five times, and its payout ratio at present sits at 35% of earnings. Check The TJX Companies’ dividend history here.


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