The Nasdaq hit an all-time closing high on Friday. However, markets have turned volatile over the past couple of weeks, with the Dow and S&P 500 snapping their six-week winning streak last week.
Concerns over the economy’s health, after fresh data showed an uptick in inflation in September, have reignited fear among investors. Also, the countdown to the U.S. presidential election is approaching, which could make markets more volatile.
Given this situation, cautious investors looking for a steady income and safeguarding their capital may look to hold or buy dividend-paying stocks. Four such stocks are The Gorman-Rupp Company GRC, Kontoor Brands, Inc. KTB, West Pharmaceutical Services, Inc. WST and Standex International Corporation SXI.
Market Volatility Returns to Wall Street
The Federal Reserve announced a 50-basis point rate cut last month, its first since March 2020 and the biggest since 2008. The jumbo rate cut was cheered by investors, setting a Wall Street rally.
This month, the rally has faced a roadblock after data showed that inflation rose again in September. The consumer price index (CPI) climbed 0.2% in September, higher than the consensus estimate of a rise of 0.1%.
Year over year, CPI rose 2.4%, the smallest jump in over three and a half years. However, core CPI, which excludes the volatile food and energy prices, jumped 3.3% year over year, higher than economists’ expectation of a rise of 3.2%.
Investors are still hopeful that the Federal Reserve will go for two more rate cuts this year. However, growing concerns over a slowing economy have reignited fears that the Federal Reserve could slow its pace of rate cuts. Moreover, with the U.S. presidential election approaching in less than three weeks, market volatility may persist for an extended period.
4 Stocks That Announced Dividend Hikes
Given this scenario, investing in dividend-paying stocks would be a prudent choice. These companies maintain strong operations and regularly provide dividends, yet stay profitable because of their sound business models. In a highly volatile market, companies that offer high dividend payouts tend to outperform those that do not pay dividends.
The Gorman-Rupp Company
The Gorman-Rupp Company designs, manufactures and sells pumps and related equipment (pump and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agricultural, fire protection, military and other liquid-handling applications. GRC has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
On Oct. 25, The Gorman-Rupp Company announced that its shareholders would receive a dividend of $0.19 a share on Dec. 10, 2024. GRC has a dividend yield of 1.93%. Over the past five years, The Gorman-Rupp Company has increased its dividend six times, and its payout ratio at present sits at 43% of earnings.Check The Gorman-Rupp Company’s dividend history here.
Gorman-Rupp Company (The) Dividend Yield (TTM)
Gorman-Rupp Company (The) Dividend Yield (TTM)
Gorman-Rupp Company (The) dividend-yield-ttm | Gorman-Rupp Company (The) Quote
Kontoor Brands, Inc.
Kontoor Brands, Inc. is an apparel company. It designs, manufactures and distributes products. KTB’s brands include Wrangler, Lee and Rock & Republic. Kontoor Brands carries a Zacks Rank #3.
On Oct. 25, Kontoor Brandsdeclared that its shareholders would receive a dividend of $0.52 a share on Dec. 19, 2024. KTB has a dividend yield of 2.60%. Over the past five years, Kontoor Brands has increased its dividend four times, and its payout ratio at present sits at 42% of earnings. Check Kontoor Brands’ dividend history here.
Kontoor Brands, Inc. Dividend Yield (TTM)
Kontoor Brands, Inc. Dividend Yield (TTM)
Kontoor Brands, Inc. dividend-yield-ttm | Kontoor Brands, Inc. Quote
West Pharmaceutical Services, Inc.
West Pharmaceutical Services, Inc. is a leading global manufacturer with respect to design and production of technologically advanced, high-quality, integrated containment and delivery systems for injectable drugs and healthcare products. WST designs and produces these medical products in the Americas, Europe, the Middle East, Africa and the Asia Pacific. West Pharmaceutical Services has a Zacks Rank #3.
On Oct. 24, West Pharmaceutical Servicesannounced that its shareholders would receive a dividend of $0.21 a share on Nov. 20, 2024. WST has a dividend yield of 0.26%. Over the past five years, West Pharmaceutical Serviceshas increased its dividend five times, and its payout ratio at present sits at 12% of earnings.Check West Pharmaceutical Services’ dividend history here.
West Pharmaceutical Services, Inc. Dividend Yield (TTM)
West Pharmaceutical Services, Inc. Dividend Yield (TTM)
West Pharmaceutical Services, Inc. dividend-yield-ttm | West Pharmaceutical Services, Inc. Quote
Standex International Corporation
Standex International Corporation is a diversified manufacturer, producing and marketing a wide variety of useful, quality products. SXI enjoys a broad and well-balanced earnings base by virtue of its strong market position in selected areas of operation. Standex Internationa lcarries a Zacks Rank #3.
On Oct. 24, Standex International declared that its shareholders would receive a dividend of $0.32 a share on Nov. 22, 2024. SXI has a dividend yield of 0.68%. Over the past five years, Standex Internationalhas increased its dividend six times, and its payout ratio at present sits at 17% of earnings.Check Standex International’s dividend history here.
Standex International Corporation Dividend Yield (TTM)
Standex International Corporation Dividend Yield (TTM)
Standex International Corporation dividend-yield-ttm | Standex International Corporation Quote
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