Advertisement
Australia markets open in 2 hours 36 minutes
  • ALL ORDS

    7,817.40
    -81.50 (-1.03%)
     
  • AUD/USD

    0.6419
    -0.0006 (-0.10%)
     
  • ASX 200

    7,567.30
    -74.80 (-0.98%)
     
  • OIL

    83.24
    +0.10 (+0.12%)
     
  • GOLD

    2,406.70
    -7.10 (-0.29%)
     
  • Bitcoin AUD

    101,082.87
    +154.02 (+0.15%)
     
  • CMC Crypto 200

    1,405.99
    +93.37 (+7.11%)
     

5 Stocks to Watch That Recently Announced Dividend Hikes

Wall Street started 2024 on a high as stocks rallied on hopes that the Federal Reserve would soon begin to its rate cuts, with inflation sharply declining over the past year. The Dow, S&P 500 and Nasdaq ended January 1.2%, 1.6% and 1% higher, respectively.

The consumer confidence level also touched a 25-month high in January, with the index reading coming in at 114.8. Investors now believe that the economy will have a softer landing than expected earlier.

The Federal Reserve, at the end of its January FOMC meeting, indicated that interest rate hikes have likely ended. However, the optimism among market participants somewhat faded after Federal Reserve Chairman Jerome Powell said that it is unlikely that the central bank would be ready for a rate cut in March as inflation is still above its 2% target.

Investors were hopeful that the Fed would go for the first rate cut in March and follow up with two more rate cuts of 25 basis points each. Although markets are still pricing in three rate cuts of 25 basis points each this year, the Fed has indicated that higher interest rates are likely to stay for a longer period.

ADVERTISEMENT

According to the CME FedWatch tool, the probability of the first rate cut in March was 73% just three weeks back and more than 90% in early January, but has now plummeted to 19.5%. This may make markets volatile again.

Stocks in Focus

In light of the current circumstances, investors seeking to protect their portfolios might consider dividend-yielding stocks as a prudent option. We recommend investigating stocks that have recently raised their dividend payouts.

Five such stocks are PACCAR Inc PCAR, Church & Dwight Co., Inc. CHD, Imperial Oil Limited IMO, Ramaco Resources, Inc. METC and The Cigna Group CI.

PACCAR Inc is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. PCAR also designs and manufactures diesel engines and other powertrain components for use in its products and sale to third-party manufacturers of trucks and buses. PACCAR sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

On Feb 5, PACCAR announced that its shareholders would receive a dividend of $3.20 a share on Mar 6, 2024. PCAR has a dividend yield of 1.04%. Over the past five years, PACCAR has increased its dividend nine times, and its payout ratio at present sits at 11% of earnings. Check PACCAR’s dividend history here.

Church & Dwight Co., Inc. develops, manufactures and markets a broad range of household, personal care and specialty products. CHD is the leading U.S. producer of sodium bicarbonate, popularly known as baking soda, a natural product that cleans, deodorized, leavens and buffers.

On Feb 2, Church & Dwight declared that its shareholders would receive a dividend of $0.28 a share on Mar 1, 2024. CHD has a dividend yield of 1.09%. Over the past five years, Church & Dwight has increased its dividend six times, and its payout ratio at present sits at 34% of earnings. Check Church & Dwight’s dividend history here.

Imperial Oil Limited is one of the largest integrated oil companies in Canada, mainly engaged in oil and gas production, petroleum products refining and marketing and chemical business. Notably, IMO is the subsidiary of one the world’s largest publicly traded oil and gas companies, Exxon Mobil Corporation, which holds a 69.6% ownership stake.

On Feb 5, Imperial Oil Limited announced that its shareholders would receive a dividend of $0.45 a share on Apr 1, 2024. IMO has a dividend yield of 2.63%. Over the past five years, Imperial Oil Limited has increased its dividend 13 times, and its payout ratio at present sits at 23% of earnings. Check Imperial Oil Limited’s dividend history here.

Ramaco Resources, Inc. is an operator and developer of metallurgical coal primarily in southern West Virginia, southwestern Virginia and southwestern Pennsylvania. METC operates principally in Charleston, WV. Ramaco Resources Inc. is based in Lexington, KY.

On Feb 5, Ramaco Resources declared that its shareholders would receive a dividend of $0.14 a share on Mar 15, 2024. METC has a dividend yield of 3.02%. Over the past five years, Ramaco Resources has increased its dividend four times, and its payout ratio at present sits at 33% of earnings. Check Ramaco Resources’ dividend history here.

The Cigna Group was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. At the end of 2023, CI’s reportable segments are Evernorth Health Services and Cigna Healthcare.

On Feb 2, The Cigna Group announced that its shareholders would receive a dividend of $1.40 a share on Mar 21, 2024. CI has a dividend yield of 1.50%. Over the past five years, The Cigna Group has increased its dividend four times, and its payout ratio at present sits at 20% of earnings. Check The Cigna Group’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

PACCAR Inc. (PCAR) : Free Stock Analysis Report

Cigna Group (CI) : Free Stock Analysis Report

Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report

Imperial Oil Limited (IMO) : Free Stock Analysis Report

Ramaco Resources, Inc. (METC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research