4 Stocks to Watch on Their Recent Dividend Hikes

Markets have returned to Wall Street and stocks have been taking a beating as uncertainty over rate cuts and geopolitical tensions in the Middle East are denting investors’ confidence.

On Apr 19, the Nasdaq and the S&P 500 recorded their sixth straight session of declines. Tech stocks, which have been driving the rally since last year, are the worst sufferers.

Inflation has started escalating again after declining sharply in 2023, which had raised hopes that the Federal Reserve would soon start rate cuts. The Federal Reserve has also hinted at least three rate cuts by the end of this year.

However, the consumer price index (CPI) rose 3.5% year over year in March and 0.4% sequentially. Although the Federal Reserve still plans to cut rates this year, it has not given a timeline for the first rate cut.

Investors are now expecting the first rate cut in June but the Fed is unlikely to initiate it unless it is confident that inflation is declining sharply.

Also, the recent tensions between Iran and Israel, wherein Iran chared a barrage of drones and missiles on Israel, followed by a retaliatory attack by the Israeli Defense Force, has raised fresh fears of a large-scale war.

Stocks to Watch

Amid such circumstances, investors seeking to safeguard their portfolios may find dividend-yielding stocks to be an attractive option. It's advisable to consider stocks that have recently boosted their dividend payouts.

Four such stocks are KB Home KBH, Interactive Brokers Group, Inc. IBKR, QUALCOMM Incorporated QCOM and Johnson & Johnson JNJ.

KB Home is a well-known homebuilder in the United States and one of the largest in the state.  KBH’s Homebuilding operations include building and designing homes that cater to first-time, move-up and active adult homebuyers on acquired or developed lands. KB Home also builds attached and detached single-family homes, townhomes and condominiums. KBH sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

On Apr 18, KB Home declared that its shareholders would receive a dividend of $0.25 a share on May 23, 2024. KBH has a dividend yield of 1.31%. Over the past five years, KB Home has increased its dividend five times, and its payout ratio at present sits at 11% of earnings.CheckKB Home’s dividend history here.

Interactive Brokers Group, Inc. operates as an automated global electronic market maker and broker. IBKR specializes in routing orders, besides executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on more than 150 electronic exchanges and market centers worldwide.

On Apr 16, Interactive Brokersannounced that its shareholders would receive a dividend of $0.25 a share on Jun 14, 2024. IBKR has a dividend yield of 0.36%. Over the past five years, Interactive Brokershas increased its dividend once, and its payout ratio at present sits at 7% of earnings.CheckInteractive Brokers’ dividend history here.

QUALCOMM Incorporated designs, manufactures and markets digital wireless telecom products and services based on the Code Division Multiple Access technology. QCOM’s products include CDMA-based integrated circuits and system software for wireless voice and data communications as well as global positioning system products. QUALCOMMalso offers development and other product-related services to U.S. government agencies and their contractors.

On Apr 12, QUALCOMMdeclared that its shareholders would receive a dividend of $0.85 a share on Jun 20, 2024. QCOM has a dividend yield of 2.03%. Over the past five years, QUALCOMMhas increased its dividend five times, and its payout ratio at present sits at 46% of earnings.CheckQUALCOMM’sdividend history here.

Johnson & Johnson operates through pharmaceuticals and medical devices divisions. JNJ has more than 275 subsidiaries, which clearly means that the business is extremely well diversified. Johnson & Johnson’s diversification helps it to withstand economic cycles more effectively. JNJ has 26 platforms with more than $1 billion in annual sales.

On Apr 16, Johnson & Johnson announced that its shareholders would receive a dividend of $1.24 a share on Jun 4, 2024. JNJ has a dividend yield of 3.22%. Over the past five years, Johnson & Johnson has increased its dividend six times, and its payout ratio at present sits at 46% of earnings.CheckJohnson & Johnson’s dividend history here.

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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

Johnson & Johnson (JNJ) : Free Stock Analysis Report

Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report

KB Home (KBH) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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