It has been a turbulent ride for stocks this year. All three major indexes hit record closing highs but also ended giving up their gains. High inflation, tariff burden and geopolitical tensions have unsettled stocks, with consumer sentiment hitting an all-time low.
Given the uncertainty, cautious investors looking for steady income and ways to protect their capital may consider holding or investing in dividend-paying stocks.
Such stocks provide steady earnings through regular dividend payouts and can help mitigate the effects of market volatility. Three such stocks are: Sysco Corporation SYY, Nicolet Bankshares, Inc. NIC and Interactive Brokers Group, Inc. IBKR.
Volatility Continues on Wall Street
Stocks have rallied over the past couple of days, with the S&P 500 and the Nasdaq closing at record highs after President Donald Trump extended the U.S. ceasefire with Iran. However, the tensions are far from over. The second round of peace talks has already fallen apart, and peace hasn’t returned to the Strait of Hormuz yet.
The uncertainty has kept investors worried. Global oil prices have surged more than 30% since the beginning of the Middle East crisis. Also, inflation climbed in March to its highest level in a year. The consumer price index (CPI) jumped 0.9% in March on a month-over-month basis.
A struggling labor market had already been raising fears of a slowing economy. The high inflation reading has now dashed hopes of the Federal Reserve going for an interest rate cut anytime soon.
The persistent concerns over the economy’s health saw consumer sentiment drop to 47.6 in March, a sharp 10.7% decline from March’s reading. These uncertainties could keep markets volatile for a longer period.
3 Stocks That Recently Announced Dividend Hikes
Sysco Corporation
Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry. SYY provides products and related services to approximately 425,000 customers, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. Sysco Corporation carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On April 17, Sysco Corporation announced that its shareholders would receive a dividend of $0.55 a share on July 24. SYY has a dividend yield of 2.89%. Over the past five years, Sysco Corporation has increased its dividend six times, and its payout ratio presently sits at 47% of earnings. Check Sysco Corporation’s dividend history here.
Nicolet Bankshares
Nicolet Bankshares, Inc. is a bank holding company for Nicolet National Bank. NIC provides commercial and retail banking services for businesses and individuals primarily in northeast and central Wisconsin and the Upper Peninsula of Michigan. Nicolet Banksharescarries a Zacks Rank #3.
On April 21, Nicolet Bankshares declared that its shareholders would receive a dividend of $0.36 a share on June 15. NIC has a dividend yield of 0.83%. Over the past five years, Nicolet Bankshares has increased its dividend three times, and its payout ratio presently sits at 13% of earnings. Check Nicolet Bankshares’ dividend history here.
Interactive Brokers Group
Interactive Brokers Group, Inc. operates as an automated global electronic broker. IBKR specializes in routing orders and executing and processing trades in securities, futures, foreign exchange instruments, bonds, mutual funds, exchange-traded funds (ETFs) and precious metals on more than 160 electronic exchanges and market centers in 37 countries and 28 currencies. IBKR has a Zacks Rank #3.
On April 21, Interactive Brokers announced that its shareholders would receive a dividend of $0.09 a share on June 12. IBKR has a dividend yield of 0.40%. Over the past five years, Interactive Brokers has increased its dividend three times, and its payout ratio presently sits at 15% of earnings. Check Interactive Brokers’ dividend history here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpInteractive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
Sysco Corporation (SYY) : Free Stock Analysis Report
Nicolet Bankshares Inc. (NIC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
