U.S. stock markets have witnessed an impressive rally in the first seven months of this year after a highly disappointing 2022. After that volatility returned on Wall Street, which ended in negative territory in the last three successive months.
Fed Chairman Jerome Powell’s warning of further hike in the benchmark interest rate resulted in a massive spike in U.S. government yields. More importantly, the central bank said it would keep interest rates higher for a longer time. The new projection has shown two rate cuts in 2024 instead of the four projected in June. The first cut in interest rate is not expected before September 2024.
Market participants were once again concerned about a near-term recession. However, last week was the best one for U.S. stock markets as investors remained highly optimistic that the Fed may not hike interest rate further. A series of weak economic data, especially a tepid nonfarm payroll for October, boosted investors’ confidence.
However, we are not out of the woods, as inflation is still highly elevated. Even Powell acknowledged that the central bank still has a long way to go to achieve its 2% target for inflation rate. The unresolved war between Russia and Ukraine and the recent geopolitical conflict between Israel and the Palestine-based terrorist group Hamas may also inject more volatility in the near future.
Stocks to Watch
At this stage, dividend-paying stocks should be in demand as investors try to safeguard their portfolios. We believe one should consider stocks that have recently raised their dividend payments.
Five such companies are — Hubbell Inc. HUBB, Adecoagro S.A. AGRO, Western Alliance Bancorporation WAL, SJW Group SJW and First Business Financial Services Inc. FBIZ.
Hubbell is engaged in the design, manufacture and sale of electrical and electronic products to commercial, industrial, utility and telecommunications markets. HUBB’s products include plugs, receptacles, connectors, lighting fixtures, high voltage test and measurement equipment and voice and data signal processing components. HUBB currently carries a Zacks Rank #3 (Hold).
On Oct 27, 2023, Hubbell declared that its shareholders would receive a dividend of $1.22 per share on Dec 15, 2023. It has a dividend yield of 1.7%. Over the past five years, HUBB has increased its dividend six times, and its payout ratio presently stays at 31% of earnings. Check HUBB’s dividend history here.
Adecoagro operates as an agricultural company in South America, with operations in Argentina, Brazil and Uruguay. AGRO is engaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation. HUBB currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On Oct 27, 2023, Adecoagro declared that its shareholders would receive a dividend of $0.165 per share on Nov 24, 2023. It has a dividend yield of 3.1%. Over the past five years, AGRO has increased its dividend three times, and its payout ratio presently stays at 27% of earnings. Check AGRO’s dividend history here.
Western Alliance provides a broad array of banking, leasing, trust, investment, and mortgage services to clients in Nevada, Arizona and California. Staffed with experienced financial professionals, WAL delivers a broader product array and larger credit capacity than community banks, yet is empowered to be more responsive to customers' needs than larger institutions. WAL currently carries a Zacks Rank #3.
On Oct 27, 2023, Western Alliance declared that its shareholders would receive a dividend of $0.37 per share on Dec 1, 2023. It has a dividend yield of 3.6%. Over the past five years, WAL has increased its dividend three times, and its payout ratio presently stays at 16% of earnings. Check WAL’s dividend history here.
Western Alliance Bancorporation Dividend Yield (TTM)
Western Alliance Bancorporation Dividend Yield (TTM)
Western Alliance Bancorporation dividend-yield-ttm | Western Alliance Bancorporation Quote
SJW Group provides water utility services in the United States. SJW operates in two segments, Water Utility Services and Real Estate Services. SJW is engaged in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services. SJW currently carries a Zacks Rank #2 (Buy).
On Oct 30, 2023, SJW Group declared that its shareholders would receive a dividend of $0.38 per share on Dec 1, 2023. It has a dividend yield of 2.6%. Over the past five years, SJW has increased its dividend five times, and its payout ratio presently stays at 48% of earnings. Check SJW’s dividend history here.
SJW Group Dividend Yield (TTM)
SJW Group Dividend Yield (TTM)
SJW Group dividend-yield-ttm | SJW Group Quote
First Business Financial provides cost-effective corporate services including human resources, finance, information technology, and marketing. FBIZ’s subsidiaries include First Business Bank, First Business Bank - Milwaukee, First Business Trust & Investments, First Business Leasing, LLC, and First Business Capital Corp. SJW currently carries a Zacks Rank #2.
On Oct 30, 2023, First Business Financial declared that its shareholders would receive a dividend of $0.2275 per share on Nov 16, 2023. It has a dividend yield of 3.1%. Over the past five years, FBIZ has increased its dividend five times, and its payout ratio presently stays at 21% of earnings. Check FBIZ’s dividend history here.
First Business Financial Services, Inc. Dividend Yield (TTM)
First Business Financial Services, Inc. Dividend Yield (TTM)
First Business Financial Services, Inc. dividend-yield-ttm | First Business Financial Services, Inc. Quote
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
