The Zacks Analyst Blog Highlights Simmons First National, Independent Bank, S&P Global, HBT Financial and Canadian National Railway
For Immediate Release
Chicago, IL – January 29, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Simmons First National SFNC, Independent Bank IBCP, S&P Global SPGI, HBT Financial HBT and Canadian National Railway CNI.
Here are highlights from Friday’s Analyst Blog:
5 Stocks to Watch on Their Recent Dividend Hikes
Investors are cautious as they eagerly wait for the Federal Reserve's upcoming meeting, scheduled next week. Expansion in both services and manufacturing activity in January, as reported by the S&P Global's flash U.S. Composite PMI Output Index, higher-than-expected Consumer Price Index (CPI) data, and increased retail sales for December are the major drivers for the Fed's interest rate decision.
The S&P Global's flash U.S. Composite PMI Output Index, increased to 52.3 this month from 50.9 in December, marking the highest since last June. A reading above 50 represents an expansion in the manufacturing and services sectors. On a month-over-month basis, CPI, which is the most accepted gauge for inflation, increased 0.3% in December compared to a 0.1% increase in November, mostly due to the rise in shelter costs.
Retail sales were up 5.6% on a year-over-year basis compared to a rise of 4.8% in November during the holiday season. The economy added 216,000 jobs, the unemployment rate was 3.7%, flat month over month, and the average hourly wage rate increased 0.4%, signaling a tight labor market in the month ending December. The U.S. gross domestic product rose 3.3% in Q4, better than the Street's expectation.
Though investors are expecting the central bank to be less hawkish this year, keeping in mind strong retail sales data and a tight labor market, the Fed could keep the interest rate high for longer. By maintaining the interest rates, the Fed wants to cool off demand by making borrowing money more expensive. Currently, the interest rate is in the range of 5.25-5.5%, which is the highest in 22 years.
Keeping in mind that the interest rates could remain high for longer, which will impact corporate performance and, thereby, stock prices, prudent investors who wish to invest their money for regular income and capital preservation can buy dividend stocks. These companies, due to their well-established businesses, pay out regular dividends and remain profitable due to their proven business models. Companies that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.
On that note, let us look at companies like Simmons First National, Independent Bank, S&P Global, HBT Financial and Canadian National Railway that have lately hiked their dividend payouts.
Simmons First National is a bank holding company. Zacks Rank #2 (Buy) SFNC provides a full range of banking and mortgage services to individual and corporate customers. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Jan 24, SFNC announced that its shareholders would receive a dividend of 21 cents a share on Apr 1, 2024. SFNC has a dividend yield of 4.0%.
Over the past five years, SFNC has increased its dividend six times. Its payout ratio now sits at 43% of earnings. Check Simmons First National's dividend history here.
Independent Bank is a bank holding company. This Zacks Rank #2 company principally provides financial services in rural and suburban communities located across Michigan's Lower Peninsula.
On Jan 23, IBCP declared that its shareholders would receive a dividend of 24 cents a share on Feb 15, 2024. IBCP has a dividend yield of 3.5%.
In the past five years, IBCP has increased its dividend six times. Its payout ratio at present sits at 32% of earnings. Check Independent Bank's dividend history here.
S&P Global is headquartered in New York, NY. This Zacks Rank #2 company is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
On Jan 23, SPGI declared that its shareholders would receive a dividend of 91 cents a share on Mar 12, 2024. SPGI has a dividend yield of 0.81%.
Over the past five years, SPGI has increased its dividend six times, and its payout ratio presently sits at 30% of earnings. Check S&P Global's dividend history here.
HBT Financial is headquartered in Bloomington, IL. This Zacks Rank #3 (Hold) company provides business, commercial, wealth management, and retail banking products and services to businesses, families and local governments.
On Jan 23, HBT declared that its shareholders would receive a dividend of 19 cents a share on Feb 13, 2024. HBT has a dividend yield of 3.4%.
In the past five years, HBT has increased its dividend three times. Its payout ratio at present sits at 28% of earnings. Check HBT Financial's dividend history here.
Canadian National Railway is engaged in the rail and related transportation business. This Zacks Rank #3 company operates as the largest rail network in Canada and the only transcontinental network in North America.
On Jan 23, CNI declared that its shareholders would receive a dividend of 64 cents a share on Mar 28, 2024. CNI has a dividend yield of 1.9%.
In the past five years, CNI has increased its dividend 14 times. Its payout ratio at present sits at 42% of earnings. Check Canadian National Railway's dividend history here.
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Canadian National Railway Company (CNI) : Free Stock Analysis Report
Simmons First National Corporation (SFNC) : Free Stock Analysis Report
Independent Bank Corporation (IBCP) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
HBT Financial, Inc. (HBT) : Free Stock Analysis Report
