U.S. markets closed
  • S&P 500

    4,071.70
    -4.87 (-0.12%)
     
  • Dow 30

    34,429.88
    +34.87 (+0.10%)
     
  • Nasdaq

    11,461.50
    -20.95 (-0.18%)
     
  • Russell 2000

    1,892.84
    +11.16 (+0.59%)
     
  • Crude Oil

    80.34
    -0.88 (-1.08%)
     
  • Gold

    1,797.30
    -3.80 (-0.21%)
     
  • Silver

    23.17
    +0.53 (+2.33%)
     
  • EUR/USD

    1.0531
    +0.0002 (+0.02%)
     
  • 10-Yr Bond

    3.5060
    -0.0230 (-0.65%)
     
  • GBP/USD

    1.2296
    +0.0040 (+0.33%)
     
  • USD/JPY

    134.2900
    -1.0160 (-0.75%)
     
  • BTC-USD

    16,972.12
    +20.43 (+0.12%)
     
  • CMC Crypto 200

    404.33
    +2.91 (+0.72%)
     
  • FTSE 100

    7,556.23
    -2.26 (-0.03%)
     
  • Nikkei 225

    27,777.90
    -448.18 (-1.59%)
     

Buy These 5 Stocks That Recently Announced Dividend Hikes

U.S. stocks were performing well after a rebound in July, but the rally seems to have lost steam over the past week, following hawkish comments from Fed Chair Jerome Powell. According to Powell, the central bank will continue with its aggressive rate hikes to combat inflation. Powell’s comments dashed hopes of a less steep rate hike in the coming months as was expected earlier.

Higher inflation had already been worrying people, and now concerns of a steep rate hike in September have reignited fears of the economy slowing down further.

Markets Unstable

The August rally came to a sudden halt on Aug 26 after Powell said that the Fed would continue its inflation fight and go for steep rate hikes for as long as it isn’t able to check surging inflation. Investors knew that the Fed would be going for a few more rounds of interest rate hikes but were divided between a 50-basis point and a 75-basis point increase.  A 75-basis-point hike is now widely expected in the Fed’s September meeting.

Following Powell’s comments, the rebound rally halted, with all the three major indexes losing more than 3% each on Aug 26. Since then, stocks have failed to recover, with the S&P 500 giving up all its gains for August in the last four trading sessions.

Higher interest rates make borrowing more expensive as well as bear the risk of an economic slowdown. Neither of these bodes well for the markets. Markets have already been subject to massive volatile trading throughout the year, and concerns of an economic slowdown continue to impact stocks.

Moreover, geopolitical tensions between Russia and Ukraine have added to the market woes as energy costs are being impacted because of sanctions on Russia.

So, it makes sense for an astute investor to keep an eye on dividend-paying stocks right now. This is because dividend stocks have a long history of profitability and a solid business model, both of which help them survive market volatility.

They don't just offer a consistent stream of income, but also have a lower risk of their prices fluctuating dramatically. Actually, during times of market turbulence, dividend-paying equities have generally outperformed non-dividend-paying stocks. Five such companies are Harley-Davidson, Inc. HOG, Greif, Inc. GEF, Bank of Montreal BMO, Ubiquiti Inc. UI and Northrim BanCorp, Inc. NRIM.

Harley-Davidson is one of the leading motorcycle makers of the world. HOG is the parent entity of company groups doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). From 2021, Harley-Davidsonhas expanded into Adventure Touring with its new Pan America motorcycle.

On Aug 31, 2022, Harley-Davidsonannounced that its shareholders would receive a dividend of $0.16 per share on Sep 22, 2022. HOG has a dividend yield of 1.62%. Over the past 5 years, Harley-Davidsonhas increased its dividend five times, and its payout ratio is presently 15% of earnings. Check HOG’s dividend history here.

Greif is a leading global producer of industrial packaging products and services with manufacturing facilities in over 40 countries. GEF offers a comprehensive line of rigid industrial packaging products and containerboard and corrugated products for the niche markets in North America. Greifis also a leading global producer of flexible intermediate bulk containers. Greif has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On Aug 31, 2022, Grief declared that its shareholders would receive a dividend of $0.50 per share on Oct 1, 2022. GEF has a dividend yield of 2.69%. Over the past 5 years, Grief has increased its dividend three times, and its payout ratio is presently 24% of earnings. Check GEF’s dividend history here.

Bank of Montreal is one of the largest banks in North America and one of Canada's oldest banks. The bank offers a complete range of financial services in our chosen markets on both sides of the Canada-United States border. The bank offers all of their clients not just financial products, but knowledge-based solutions, custom-made to add value to their financial affairs.

On Aug 30, 2022, Bank of Montreal declared that its shareholders would receive a dividend of $1.09 per share on Nov 28, 2022. BMO has a dividend yield of 4.57%. Over the past 5 years, Bank of Montreal has increased its dividend 14 times, and its payout ratio is presently 38% of earnings. Check BMO’s dividend history here.

Ubiquiti Inc. along with its subsidiaries, offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. UI’s service-provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing; while enterprise product platforms provide wireless local area network infrastructure, video surveillance products and machine-to-machine communication components.

On Aug 26, 2022, Ubiquitiannounced that its shareholders would receive a dividend of $0.60 per share on Sep 13, 2022. UI has a dividend yield of 0.75%. Over the past 5 years, Ubiquitihas increased its dividend four times, and its payout ratio is presently 39% of earnings. Check UI’s dividend history here.

Northrim BanCorp, Inc. is a full-service commercial bank that provides a full range of personal and business banking services. NRIM’s two business segments are home mortgage lending and community banking. Northrim BanCorp provides checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, business sweep accounts, interest-bearing time deposits, and noninterest-bearing checking accounts.

On Aug 26, 2022, Northrim BanCorp declared that its shareholders would receive a dividend of $0.50 per share on Sep 16, 2022. NRIM has a dividend yield of 4.03%. Over the past 5 years, Northrim BanCorp has increased its dividend 11 times, and its payout ratio is presently 34% of earnings. Check NRIM’s dividend history here.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
HarleyDavidson, Inc. (HOG) : Free Stock Analysis Report
 
Bank Of Montreal (BMO) : Free Stock Analysis Report
 
Greif, Inc. (GEF) : Free Stock Analysis Report
 
Northrim BanCorp Inc (NRIM) : Free Stock Analysis Report
 
Ubiquiti Inc. (UI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research