Watch These 5 Stocks That Recently Hiked Dividends
Wall Street has rewarded investors with positive returns this year after recovering from the lows of 2022. Major U.S. indexes like the Dow, the S&P 500 and the tech-heavy NASDAQ have given 13.1%, 24.2% and 43.6% returns, respectively, over the past year. Since inflation, which was the biggest threat to the economy, has shown signs of cooling off in the past couple of months, the Federal Reserve, in response, will most likely ease its monetary policy outlook in the near future. Investors’ confidence has recovered in anticipation that the worst phase has passed.
The Consumer Price Index for the month of November was 3.1%. The monthly rate indicates a modest rise of 0.1% from October to November, mostly due to an increase in the rental cost. The Fed, in its last policy meeting, kept the interest rate unchanged and hinted at interest rate cuts in 2024 as inflation is inching toward a favorable zone.
The real Gross Domestic Product for the third quarter has fallen below estimates, at 4.9%, according to the third estimate from the Bureau of Economic Analysis. The economy added 199,000 jobs in November versus the monthly average of 240,000 over the past year, suggesting a fairly healthy labor market. Although inflation is expected to cool off further, it is still significantly higher than the Fed’s ambitious target of 2%. Fed Chairman Jerome Powell could still keep the interest rate high for longer to win the inflation battle, which in turn would affect corporate profitability.
On the international front, the persistent war in the Middle East between Israel and Hamas amid ceasefires has disrupted the global supply chain. Such events also hurt corporate performance.
Amid such uncertainties, prudent investors who seek regular income along with capital preservation can invest in dividend stocks. These companies, with proven business models, pay out regular dividends and remain profitable due to their well-established businesses. In a highly volatile market, companies that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks.
On this note, let us look at companies like Fulton Financial FULT, ServisFirst Bancshares SFBS,The Mosaic Company MOS, Abbott Laboratories ABT and The Andersons ANDE that have lately hiked their dividend payouts.
Fulton Financial is a bank holding company. This Zacks Rank #1 (Strong Buy) company provides retail and commercial banking and investment management and trust services in central and eastern Pennsylvania, southern New Jersey, northern Maryland and southern Delaware. You can see the complete list of today's Zacks #1 Rank stocks here.
On Dec 19, FULT declared that its shareholders would receive a dividend of 17 cents a share on Jan 12, 2024. FULT has a dividend yield of 3.8%.
Over the past five years, FULT has increased its dividend nine times, and its payout ratio presently sits at 36% of earnings. Check Fulton Financials’ dividend history here.
Fulton Financial Corporation Dividend Yield (TTM)
Fulton Financial Corporation dividend-yield-ttm | Fulton Financial Corporation Quote
ServisFirst Bancshares is a bank holding company. This Zacks Rank #3 (Hold) company provides business and personal financial services.
On Dec 19, SFBS declared that its shareholders would receive a dividend of 30 cents a share on Jan 8, 2024. SFBS has a dividend yield of 1.7%.
In the past five years, SFBS has increased its dividend six times. Its payout ratio at present sits at 26% of earnings. Check ServisFirst Bancshares’ dividend history here.
ServisFirst Bancshares, Inc. Dividend Yield (TTM)
ServisFirst Bancshares, Inc. dividend-yield-ttm | ServisFirst Bancshares, Inc. Quote
The Mosaic Company is anagriculture company. This Zacks Rank #3 company is a leading producer and marketer of concentrated phosphate and potash globally.
On Dec 15, MOS declared that its shareholders would receive a dividend of 21 cents a share on Mar 21, 2024. MOS has a dividend yield of 2.2%.
In the past five years, MOS has increased its dividend six times. Its payout ratio at present sits at 17% of earnings. Check The Mosaic Company’s dividend history here.
The Mosaic Company Dividend Yield (TTM)
The Mosaic Company dividend-yield-ttm | The Mosaic Company Quote
Abbott Laboratories is headquartered in North Chicago, IL. This Zacks Rank #3 company discovers, develops, manufactures, and sells healthcare products worldwide.
On Dec 15, ABT declared that its shareholders would receive a dividend of 55 cents a share on Feb 15, 2024. ABT has a dividend yield of 1.9%.
In the past five years, ABT has increased its dividend six times. Its payout ratio at present sits at 48% of earnings. Check Abbott Laboratories’ dividend history here.
Abbott Laboratories Dividend Yield (TTM)
Abbott Laboratories dividend-yield-ttm | Abbott Laboratories Quote
The Andersons is headquartered in Maumee, OH. This Zacks Rank #3 company is a regional grain merchandiser with diversified businesses in agriculture, plant nutrient formulation and distribution, turf product production, railcar marketing and general merchandise retailing that generate revenues.
On Dec 14, ANDE announced that its shareholders would receive a dividend of 19 cents a share on Jan 22, 2024. ANDE has a dividend yield of 1.3%.
Over the past five years, ANDE has increased its dividend five times. Its payout ratio now sits at 26% of earnings. Check The Andersons’ dividend history here.
The Andersons, Inc. Dividend Yield (TTM)
The Andersons, Inc. dividend-yield-ttm | The Andersons, Inc. Quote
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Abbott Laboratories (ABT) : Free Stock Analysis Report
The Andersons, Inc. (ANDE) : Free Stock Analysis Report
The Mosaic Company (MOS) : Free Stock Analysis Report
Fulton Financial Corporation (FULT) : Free Stock Analysis Report
ServisFirst Bancshares, Inc. (SFBS) : Free Stock Analysis Report
