5 Stocks in Focus That Just Increased Their Dividends

U.S. financial markets continue to be volatile, as the annual Consumer Price Index (CPI) for March 2024 increased, following the trend in the past couple of months. Investors are expecting the central bank to be less hawkish this year, but markets are concerned about the Federal Reserve’s reactions to higher-than-expected CPI data and a strong labor market. Though the Fed’s chairman, Jerome Powell, hinted at three rate cuts in 2024 despite sticky inflation, the current situation undermines such a possibility in the near future.

Meanwhile, the key indexes, the Dow, the S&P 500 and the tech-heavy Nasdaq, have returned 0.12%, 6.12% and 5.8%, respectively, in the year-to-date period.

The CPI, which is the most accepted gauge for inflation, saw the biggest rise in the past six months. Inflation for the month of March rose to 3.5% year on year against 3.2% in February, mostly due to a rise in the cost of gasoline and shelter. Current inflation is still above the Fed’s ambitious target of 2%. However, Producer Price Index (PPI) increased 0.2% in March on a seasonally adjusted basis after rising 0.6% in February.

The jobs data for the month of March suggests a strong and resilient labor market. Nonfarm payroll employment rose by 303,000 against the street expectation of 195,000. The unemployment rate has changed marginally by 3.8% month over month, and the average hourly wage rate has increased 0.3%, in line with expectations.

The central bank in its March meeting has kept the overnight interest rate unchanged at its current range of 5.25-5.5%. Till there is further evidence of declining inflation, the Fed wants to cool off demand by making borrowing money more expensive. This would impact corporate performance and, thereby, stock prices. The challenge remains for the Fed to create a soft landing for the economy by striking the right balance between inflation and growth by keeping the interest rate higher for longer to counter rising inflation.

Prudent investors who wish to invest their money for regular income and capital preservation can buy dividend stocks. These companies, due to their well-established businesses, pay out regular dividends and remain profitable due to their proven business models. Companies that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.

On that note, let us look at companies like CSW Industrials CSWI, Targa Resources TRGP,Constellation Brands STZ, H. B. Fuller FUL and TANGER INC SKT that havel ately hiked their dividend payouts.

CSW Industrials is headquartered in Dallas, TX. This Zacks Rank #3 (Hold) company manufactures and sells industrial products, coatings, sealants, adhesives and specialty chemicals. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

On Apr 12, CSWI declared that its shareholders would receive a dividend of 21 cents a share on May 10, 2024. CSWI has a dividend yield of 0.3%.

Over the past five years, CSWI has increased its dividend four times, and its payout ratio presently sits at 11% of earnings. Check CSW Industrials’ dividend history here.

CSW Industrials, Inc. Dividend Yield (TTM)

CSW Industrials, Inc. Dividend Yield (TTM)

CSW Industrials, Inc. dividend-yield-ttm | CSW Industrials, Inc. Quote

Targa Resources is headquartered in Houston, TX. This Zacks Rank #3 is a premier energy infrastructure company, which is a provider of integrated midstream services in North America.

On Apr 11, TRGP declared that its shareholders would receive a dividend of 75 cents a share on May 15, 2024. TRGP has a dividend yield of 1.7%.

In the past five years, TRGP has increased its dividend three times. Its payout ratio at present sits at 54% of earnings. Check Targa Resources’ dividend history here.

Targa Resources, Inc. Dividend Yield (TTM)

Targa Resources, Inc. Dividend Yield (TTM)

Targa Resources, Inc. dividend-yield-ttm | Targa Resources, Inc. Quote

Constellation Brands is headquartered in Victor, NY. This Zacks Rank #3 company produces and markets beer, wine and spirits.                   

On Apr 11, STZ announced that its shareholders would receive a dividend of $1.01 a share on May 17, 2024. STZ has a dividend yield of 1.4%.

Over the past five years, STZ has increased its dividend five times. Its payout ratio now sits at 30% of earnings. Check Constellation Brands' dividend history here.

Constellation Brands Inc Dividend Yield (TTM)

Constellation Brands Inc Dividend Yield (TTM)

Constellation Brands Inc dividend-yield-ttm | Constellation Brands Inc Quote

H. B. Fuller is headquartered in Saint Paul, MN. This Zacks Rank #3 company has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives.

On Apr 11, FUL declared that its shareholders would receive a dividend of 22 cents a share on May 9, 2024. FUL has a dividend yield of 1.1%.

In the past five years, FUL has increased its dividend six times. Its payout ratio at present sits at 21% of earnings. Check H.B. Fuller’s dividend history here.

H. B. Fuller Company Dividend Yield (TTM)

H. B. Fuller Company Dividend Yield (TTM)

H. B. Fuller Company dividend-yield-ttm | H. B. Fuller Company Quote

TANGER INC is headquartered in Greensboro,NC. This Zacks Rank #2 (Buy) company is an operator of upscale open-air outlet centers. It fully or partially owns and manages a portfolio of shopping centers, principally in the United States and Canada.

On Apr 10, SKT declared that its shareholders would receive a dividend of 28 cents a share on May 15, 2024. SKT has a dividend yield of 3.9%.

Over the past five years, SKT has increased its dividend eight times, and its payout ratio presently sits at 53% of earnings. Check TANGER’s dividend history here.

Tanger Inc. Dividend Yield (TTM)

Tanger Inc. Dividend Yield (TTM)

Tanger Inc. dividend-yield-ttm | Tanger Inc. Quote

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How To Profit From Trillions On Spending For Infrastructure >>

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

Constellation Brands Inc (STZ) : Free Stock Analysis Report

Tanger Inc. (SKT) : Free Stock Analysis Report

H. B. Fuller Company (FUL) : Free Stock Analysis Report

Targa Resources, Inc. (TRGP) : Free Stock Analysis Report

CSW Industrials, Inc. (CSWI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.