For Immediate Release
Chicago, IL – January 31, 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: Yum! Brands Inc. YUM, Hexcel Corp. HXL, Arthur J. Gallagher & Co. AJG, United Rentals Inc. URI and Heritage Financial Corp. HFWA.
Here are highlights from Tuesday’s Analyst Blog:
Watch These 5 Stocks with Recently Hiked Dividends
U.S. stock markets continue to show momentum in January after some initial hiccups following an astonishing 2023. Month to date, the Dow, the S&P 500, and the Nasdaq Composite are up 1.1%, 2.5% and 3%, respectively.
A strong U.S. economy along with a steadily dwindling inflation rate, put an end to the fear of a near-term recession and restored hope among market participants that the Fed is likely to achieve the much-hyped soft landing of the economy.
However, market participants remain concerned regarding when the Fed would initiate the first cut in the benchmark interest rate. Recently, a few key Fed FOMC members said that although they believe that the rate hike regime is over, they are yet to be convinced that the economic condition is conducive enough for an immediate rate cut.
The CME FedWatch tool currently shows a 47.7% probability that the central bank will initiate the first rate cut. The probability of the first rate cut was 73% just two weeks ago and more than 90% at the beginning of 2024.
Stocks to Watch
At this stage, it should be wise for investors to accumulate dividend-paying stocks to safeguard their portfolios. In this regard, one should consider stocks that have recently raised their dividend payments. Five such companies are — Yum! Brands Inc., Hexcel Corp., Arthur J. Gallagher & Co., United Rentals Inc. and Heritage Financial Corp..
Yum! Brands is likely to benefit from continued focus on off-premise channels, strategic investments in digital technology and refranchising. YUM has implemented various digital features in mobile and online platforms across all brand segments to enhance the guest experience.
YUM has been working toward accelerating its delivery services and the results have been positive so far. YUM stated that its in-house developed AI module, Automated Inventory Management is expected to be launched across the KFC US system. Also, the emphasis on unit expansion efforts bodes well. YUM currently carries a Zacks Rank #3 (Hold).
On Jan 24, 2024, Yum! Brands declared that its shareholders would receive a dividend of $0.67 per share on Mar 8, 2024. It has a dividend yield of 2.1%. Over the past five years, YUM has increased its dividend six times, and its payout ratio presently stays at 46% of earnings. Check YUM's dividend history here.
Hexcel's commercial aerospace business is benefiting from the improvement in global air traffic and demand for Airbus and Boeing's wide-body programs. The unit may continue to deliver robust performance in the near term.
HXL will also gain from increased defense spending of various nations like the United States. HXL also boasts a solid solvency position. HXL's current ratio of 3.03 at the end of the third quarter indicates the stock's capability to pay off its short-term debt. HXL currently carries a Zacks Rank #3.
On Jan 24, 2024, Hexcel declared that its shareholders would receive a dividend of $0.15 per share on Feb 16, 2024. It has a dividend yield of 0.8%. Over the past five years, HXL has increased its dividend three times, and its payout ratio presently stays at 28% of earnings. Check HXL's dividend history here.
Arthur J. Gallagher is on track to generate both organic (particularly international) and inorganic growth. AJG's focus on tapping opportunities across the globe bodes well for growth. AJG expects 2023 organic revenues and adjusted EBITDAC margins for the Risk Management and Brokerage segment to be better than the 2022 level.
This solid performance is expected to lead to an increase in cash flows, facilitating the return of wealth to shareholders via share buybacks and dividends. A higher return on equity bodes well. AJG currently carries a Zacks Rank #3.
On Jan 24, 2024, Arthur J. Gallagher declared that its shareholders would receive a dividend of $0.60 per share on Mar 15, 2024. It has a dividend yield of 1%. Over the past five years, AJG has increased its dividend six times, and its payout ratio presently stays at 25% of earnings. Check AJG's dividend history here.
United Rentals is benefiting from sustained demand in its end markets and the strength of its core rental business. URI's third-quarter 2023 earnings and revenues grew 26.5% and 23.4%, respectively, driven by higher rental revenues (up 18%), owing to the broad-based recovery of activity across end markets served by the company.
In 2023, URI expects to deliver another profitable year, strong cash flow, and attractive returns for shareholders backed by substantial opportunities across various federally funded projects. URI sees multi-year tailwinds across infrastructure, manufacturing, and energy and power. URI currently carries a Zacks Rank #3.
On Jan 24, 2024, United Rentals declared that its shareholders would receive a dividend of $1.63 per share on Feb 28, 2024. It has a dividend yield of 1.1%. Over the past five years, URI has increased its dividend once, and its payout ratio presently stays at 15% of earnings. Check URI's dividend history here.
Heritage Financial operates as the bank holding company for Heritage Bank, which provides various financial services to small and medium sized businesses and individuals in the United States. HFWA accepts various deposit products, such as noninterest demand deposits, interest-bearing demand deposits, money-market accounts, savings accounts, personal checking accounts, and certificates of deposit.
HFWA's loan portfolio includes commercial and industrial loans, owner-occupied and non-owner-occupied commercial real estate loans, one-to-four family residential loans, real estate construction and land development loans, consumer loans, commercial business loans, lines of credit, term equipment financing, and term real estate loans, as well as commercial business loans to a range of businesses in industries. HFWA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Jan 24, 2024, Heritage Financial declared that its shareholders would receive a dividend of $0.23 per share on Feb 22, 2024. It has a dividend yield of 4.6%. Over the past five years, HFWA has increased its dividend six times, and its payout ratio presently stays at 43% of earnings. Check HFWA's dividend history here.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Yum! Brands, Inc. (YUM) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
Hexcel Corporation (HXL) : Free Stock Analysis Report
United Rentals, Inc. (URI) : Free Stock Analysis Report
Heritage Financial Corporation (HFWA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
