4 Stocks in Focus That Recently Hiked Their Dividends
Wall Street ended 2023 on a high after struggling for most of 2022. The Dow, the S&P 500 and the Nasdaq returned 43.4%, 24.2% and 13.7%, respectively, for the year and have started 2024 on a high.
The Federal Reserve has also left interest rates steady in its current range of 5.25-5.50% in its past three policy meetings as inflation, which has been a major threat to the economy has sharply declined over the past year.
Expectations are now high that the Federal Reserve will soon end its monetary tightening campaign and start cutting rates. Market participants are now expecting at least three rate cuts in 2024. This bodes well for the economy but uncertainties still loom large.
The Federal Reserve’s favorite inflation gauge, the personal consumption expenditures (PCE) index fell 0.1% in November, recording its first decline since April 2022. Year over year, PCE inflation fell to 2.6% in November from the prior month’s increase of 2.9%.
However, inflation is still above the central bank’s 2% target and Federal Reserve Chair Jerome Powell said that officials will closely monitor inflation data over the coming months.
Also, the Gross Domestic Product (GDP) for the third quarter increased 4.9%, which was below the initial estimates of a jump of 5.2%, according to the Bureau of Economic Analysis.
Moreover, the labor market remains resilient despite a sharp drop in new additions to the economy. The economy added 199,000 jobs in November against the monthly average of 240,000 in the last year, reflecting a robust labor market.
Also, the ongoing conflict in the Middle East between Israel and Hamas, despite intermittent ceasefires, has caused disruptions in the global supply chain. These events also have a negative impact on corporate performance.
Stocks in Focus
Given this situation, investors looking to secure their portfolios may find dividend-yielding stocks to be an excellent choice. We suggest exploring stocks that have recently increased their dividend payments.
Four such stocks are Immersion Corporation IMMR, Bank OZK OZK, United Bancorporation of Alabama, Inc. UBAB and Alamo Group Inc. ALG.
Immersion Corporation develops hardware and software technologies that enable users to interact with computers using their sense of touch. IMMR’s patented technologies, which are branded TouchSense, enable devices such as mice, joysticks, knobs, and medical simulation products to deliver tactile sensations that correspond to on-screen events.
On Jan 4, Immersion announced that its shareholders would receive a dividend of $0.05 a share on Jan 25, 2024. IMMR has a dividend yield of 1.73%. Over the past five years, Immersionhas increased its dividend two times, and its payout ratio at present sits at 12% of earnings. Check Immersion’s dividend history here.
Bank OZK is a bank that provides financial solutions. OZK offers financial products and services that consist of savings accounts, personal and business loans, debit and credit cards, letter of credit, certificate of deposits, mortgages, equipment financing, cash management and online banking services. Bank OZK carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Jan 2, Bank OZK declared that its shareholders would receive a dividend of $0.38 a share on Jan 23, 2024. OZK has a dividend yield of 3.07%. Over the past five years, Bank OZK has increased its dividend 21 times, and its payout ratio at present sits at 25% of earnings. Check Bank OZK’s dividend history here.
United Bancorporation of Alabama, Inc. is a parent company of United Bank and UB Community Development. UBAB provides a range of deposit products and loans, as well as other services such as Internet banking and brokerage services.
On Dec 21, 2023, United Bancorporation of Alabamaannounced that its shareholders would receive a dividend of $0.35 a share on Jan 22, 2024. UBAB has a dividend yield of 1.68%. Over the past five years, United Bancorporation of Alabamahas increased its dividend eight times, and its payout ratio at present sits at 7% of earnings. Check United Bancorporation of Alabama’s dividend history here.
Alamo Group Inc. is a leader in the design, manufacture, distribution and service of high quality equipment for infrastructure maintenance, agriculture and other applications. ALG’s products include truck and tractor-mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements and related after-market parts and services.
On Jan 2, Alamo Groupdeclared that its shareholders would receive a dividend of $0.26 a share on Jan 29, 2024. ALG has a dividend yield of 0.44%. Over the past five years, Alamo Grouphas increased its dividend six times, and its payout ratio at present sits at 8% of earnings. Check Alamo Group’s dividend history here.
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Alamo Group, Inc. (ALG) : Free Stock Analysis Report
Immersion Corporation (IMMR) : Free Stock Analysis Report
Bank OZK (OZK) : Free Stock Analysis Report
United Bancorporation of Alabama, Inc. (UBAB) : Free Stock Analysis Report
