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4 Stocks to Watch That Recently Announced Dividend Hikes

Wall Street had a great first quarter but volatility appears to have returned to markets amid concerns over inflation. Although all three major indexes are holding ground, investors are unsure about the Federal Reserve’s next move.

Inflation, which declined sharply in 2023, has resumed its climb, increasing for the third straight month. The consumer price index (CPI) rose 3.5% year over year in March after increasing 3.1% and 3.2% in January and February, respectively.

Higher costs of gasoline and shelter are being held responsible for the uptick in inflation.

Moreover, economic growth also slowed drastically in the first quarter. The U.S. GDP grew a modest 1.6% in the first quarter against expectations of a rise of 2.2% and sharply lower than the fourth-quarter 2023 growth of 3.4%.

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This was also the slowest growth in nearly two years. The Federal Reserve left interest rates unchanged in its April Federal Open Market Committee meeting and said that any further interest rate hike is unlikely.

However, inflation remains a lot higher than its 2% target and the Federal Reserve said that it doesn’t see any sign of inflation declining sharply.

Rising inflation has seen the optimism surrounding rate cuts fade over the past couple of months. Higher borrowing rates could keep markets volatile for a longer period.

Stocks in Focus

Given this situation, investors seeking steady income and capital preservation should opt for dividend stocks. These companies, known for their stable operations, pay out regular dividends and maintain profitability, thanks to their reliable business models. High-dividend-paying stocks typically outperform those that don't pay dividends in volatile markets.

Four such stocks are Curtiss-Wright Corporation CW, Murphy USA Inc. MUSA, ESAB Corporation ESAB and Victory Capital Holdings, Inc. VCTR.

Curtiss-Wright Corporation is a diversified multinational company that designs and overhauls precision components. CW provides engineered products and services for high-performance platforms, and critical applications in key areas such as commercial aerospace and defense electronics, reactor coolant pumps for next-generation nuclear reactors as well as advanced surface treatment technologies. Curtiss-Wright Corporation has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On May 10, Curtiss-Wright Corporation declared that its shareholders would receive a dividend of $0.21 a share on Jul 5, 2024. CW has a dividend yield of 0.29%. Over the past five years, Curtiss-Wright Corporation has increased its dividend five times, and its payout ratio at present sits at 8% of earnings. Check Curtiss-Wright Corporation’s dividend history here.

Murphy USA Inc. is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA markets refined products through a chain of retail stations, almost all of which are located near a Walmart supercenter, primarily in the Southeast, Southwest and Midwest United States.

On May 9, Murphy USAannounced that its shareholders would receive a dividend of $0.44 a share on Jun 3, 2024. MUSA has a dividend yield of 0.39%. Over the past five years, Murphy USA has increased its dividend 10 times, and its payout ratio at present sits at 7% of earnings. Check Murphy USA’s dividend history here.

ESAB Corporation is a premier global fabrication and specialty gas control technology company focused on welding technology, advanced equipment, consumables, specialty gas control, robotics and digital solutions. ESAB is based in North Bethesda, MD.

On May 9, ESAB Corporation announced that its shareholders would receive a dividend of $0.08 a share on Jul 12, 2024. ESAB has a dividend yield of 0.22%. Over the past five years, ESAB Corporation has increased its dividend two times, and its payout ratio at present sits at 5% of earnings. Check ESAB Corporation’s dividend history here.

Victory Capital Holdings, Inc. is an integrated multi-boutique asset management firm. VCTR provides institutions, financial advisors and retirement platforms which include separately managed accounts, collective trusts, mutual funds, ETFs and UMA/SMA vehicles. Victory Capital Holdings, Inc. is headquartered in Cleveland, OH.

On May 9, Victory Capital Holdingsdeclared that its shareholders would receive a dividend of $0.37 a share on Jun 25, 2024. VCTR has a dividend yield of 2.64%. Over the past five years, Victory Capital Holdings has increased its dividend 10 times, and its payout ratio at present sits at 29% of earnings. Check Victory Capital Holdings’ 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

Murphy USA Inc. (MUSA) : Free Stock Analysis Report

Curtiss-Wright Corporation (CW) : Free Stock Analysis Report

Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report

ESAB Corporation (ESAB) : Free Stock Analysis Report

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