Major U.S. indexes — the Dow, the S&P 500 and the Nasdaq — have given investors a positive return of 7.9%, 16.2% and 19.1%, respectively, in the year-to-date period.
According to the Consumer Price Index (CPI) data published by the Bureau of Labor Statistics, inflation for the month of June saw a dip for the first time in more than four years. The CPI fell 0.1% monthly due to cheap gasoline prices and moderating rents. On a yearly basis, CPI increased by 3%. The above data suggests that inflation in the second quarter resumed its downward trend.
The labor market is also slowly cooling off. Unemployment is steadily ticking up and job creation is slowing down. The nonfarm payrolls rose by 206,000 in June compared to the revised target of 218,000 in May, while the unemployment rate breached 4% for the first time in over two years in June.
Even after favorable macroeconomic data, Federal Reserve Chair Jerome Powell after his two-day testimony in front of Congress, said that the central bank will not cut interest rates until it finds greater confidence that inflation is headed toward its desired target. All eyes will be on the Fed’s upcoming meeting from Jul 30-31 as investors are expecting an interest rate cut in September.
In such a situation, prudent investors who wish to invest their money for regular income and capital preservation if things go south, can remain invested in or 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 H. B. Fuller FUL, First Community FCCO, ASML Holding ASML, Regions Financial RF and Union Pacific Corporation UNP that have lately hiked their dividend payouts.
H. B. Fuller is a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. This Saint Paul, MN-based company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
On Jul 17, FUL declared that its shareholders would receive a dividend of 22 cents a share on Aug 14, 2024. FUL has a dividend yield of 1.1%.
Over the past five years, FUL has increased its dividend five times, and its payout ratio presently 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 Quote
First Community is headquartered in Lexington, SC. This Zacks Rank #2 company is engaged in a general commercial and retail banking business, emphasizing the needs of small-to-medium-sized businesses, professional concerns and individuals.
On Jul 16, FCCO declared that its shareholders would receive a dividend of 15 cents a share on Aug 13, 2024. FCCO has a dividend yield of 2.8%.
In the past five years, FCCO has increased its dividend four times. Its payout ratio at present sits at 39% of earnings. Check First Community’s dividend history here.
First Community Corporation Dividend Yield (TTM)
First Community Corporation dividend-yield-ttm | First Community Corporation Quote
ASML Holding is a world leader in the manufacture of advanced technology systems for the semiconductor industry. The Zacks Rank #2 company is headquartered in Veldhoven, Netherlands.
On Jul 17, ASML announced that its shareholders would receive a dividend of $1.41 a share on Aug 7, 2024. ASML has a dividend yield of 0.7%.
Over the past five years, ASML has increased its dividend nine times. Its payout ratio now sits at 27% of earnings. Check ASML Holding's dividend history here.
ASML Holding N.V. Dividend Yield (TTM)
ASML Holding N.V. dividend-yield-ttm | ASML Holding N.V. Quote
Regions Financial provides retail, commercial and mortgage banking, as well as other financial services in asset management, wealth management, securities brokerage, trust services, mergers and acquisitions advisory services, and other specialty financing. This Birmingham, AL-based company currently carries a Zacks Rank #3.
On Jul 17, RF declared that its shareholders would receive a dividend of 25 cents a share on Oct 1, 2024. RF has a dividend yield of 4.3%.
Over the past five years, RF has increased its dividend five times, and its payout ratio presently sits at 47% of earnings. Check Regions Financial’s dividend history here.
Regions Financial Corporation Dividend Yield (TTM)
Regions Financial Corporation dividend-yield-ttm | Regions Financial Corporation Quote
Union Pacific Corporation is headquartered in Omaha, NE. This Zacks Rank #3 company is the largest railroad in North America. Union Pacific connects the Pacific and Gulf Coast ports with the Midwest and gateways in the eastern United States.
On Jul 17, UNP declared that its shareholders would receive a dividend of $1.34 a share on Sep 30, 2024. UNP has a dividend yield of 2.1%.
In the past five years, UNP has increased its dividend five times. Its payout ratio at present sits at 50% of earnings. Check Union Pacific Corporation’s dividend history here.
Union Pacific Corporation Dividend Yield (TTM)
Union Pacific Corporation dividend-yield-ttm | Union Pacific Corporation 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 >>Regions Financial Corporation (RF) : Free Stock Analysis Report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
ASML Holding N.V. (ASML) : Free Stock Analysis Report
H. B. Fuller Company (FUL) : Free Stock Analysis Report
First Community Corporation (FCCO) : 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.
