Wall Street started 2024 on a high, with major indexes hitting all-time highs as a steep decline in inflation by the end of last year raised hopes that the Federal Reserve would soon initiate rate cuts. However, the hopes have faded drastically over the past couple of weeks as inflation rose above 3% in the first two months of the year.
The consumer price index (CPI) rose 0.4% month over month in February after rising 0.3% in January. Year over year, CPI rose 3.2% in February, higher than January’s jump of 3.1%.
Core CPI, which strips out the volatile food and energy prices, rose 0.4% month over month and 3.8% year over year. Inflation, however, has declined sharply from its peak of 9.1% in June 2022. Yet, it remains above the Federal Reserve’s target of 2%.
Investors at the beginning of the year were expecting the Federal Reserve to implement its first rate cut in March. However, the Fed ruled out the possibility last month, saying that March would be too early.
This somewhat dented investors’ sentiments. Hopes of a rate cut in the Fed’s May FOMC meeting are also fading fast, following the fresh reading on inflation. Market participants now believe that the first cut in interest rates won’t happen before the Federal Reserve’s June FOMC.
However, the central bank has said that the first rate cut would happen only after officials are confident that inflation has declined substantially. This has been unsettling markets lately, with all three major indexes giving up some of their gains made in the first two months of the year.
Uncertainty over rate cuts could keep markets volatile for a longer time.
Given this situation, investors looking to secure their portfolios may find dividend-yielding stocks an excellent choice. We suggest exploring stocks that have recently increased their dividend payments.
Four such stocks are Host Hotels & Resorts, Inc. HST, Wheaton Precious Metals Corp. WPM, Colgate-Palmolive Company CL and Verisk Analytics, Inc. VRSK.
Host Hotels & Resorts, Inc., one of the leading lodging real estate investment trusts (REITs), engages in the ownership, acquisition, and redevelopment of luxury and upper-upscale hotels in the United States and abroad. In operating its properties that are positioned mainly in growing markets in the United States and globally, HST teams up with premium brands such as Marriott, Westin, Ritz-Carlton, Hyatt, Sheraton, W, St. Regis, The Luxury Collection, Fairmont, Four Seasons, Swissôtel, ibis, Novotel and Hilton. Host Hotels & Resorts has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Mar 17, Host Hotels & Resorts declared that its shareholders would receive a dividend of $0.20 a share on Apr 15, 2024. HST has a dividend yield of 3.90%. Over the past five years, Host Hotels & Resorts has increased its dividend eight times, and its payout ratio at present sits at 41% of earnings.Check Host Hotels & Resorts’ dividend history here.
Wheaton Precious Metals Corp. is one of the largest precious metal streaming companies in the world that generates its revenues from the sale of precious metals and cobalt. WPM enters into purchase agreements (“PMPAs”) to purchase the entirety or a portion of the precious metals or cobalt production from mines located across the globe for an upfront payment and an additional payment upon the delivery of the precious metal or cobalt.
On Mar 15, Wheaton Precious Metalsannounced that its shareholders would receive a dividend of $0.16 a share on Apr 15, 2024. WPM has a dividend yield of 1.35%. Over the past five years, Wheaton Precious Metalshas increased its dividend six times, and its payout ratio at present sits at 51% of earnings.Check Wheaton Precious Metals’ dividend history here.
Colgate-Palmolive Company’s business strategy closely defines efforts to increase its leadership in key product categories through innovation in core businesses, tracking adjacent categories’ growth and expansion into new markets and channels. Due to the shift of consumer preference to organic and natural ingredients, CL is expanding its Naturals range, including Naturals toothpaste.
On Mar 14, Colgate-Palmolivedeclared that its shareholders would receive a dividend of $0.50 a share on May 15, 2024. CL has a dividend yield of 2.17%. Over the past five years, Colgate-Palmolivehas increased its dividend six times, and its payout ratio at present sits at 59% of earnings.Check Colgate-Palmolive’s dividend history here.
Verisk Analytics, Inc. is one of the leading data analytics providers serving customers in the insurance, energy and specialized markets and financial services. Using advanced technologies to collect and analyze data, VRSK draws on unique data assets and deep domain expertise to provide innovations that are integrated into customer workflows.
On Mar 14, Verisk Analyticsannounced that its shareholders would receive a dividend of $0.39 a share on Mar 29, 2024. VRSK has a dividend yield of 0.67%. Over the past five years, Verisk Analyticshas increased its dividend five times, and its payout ratio at present sits at 24% of earnings.Check Verisk Analytics’ 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
Host Hotels & Resorts, Inc. (HST) : Free Stock Analysis Report
Colgate-Palmolive Company (CL) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
