Markets are on a rally, with all three major indexes recording their sixth straight week of gains. However, volatility has also increased over the past couple of weeks, owing to multiple economic and geopolitical factors.
Also, the U.S. Presidential election is less than a month away. This could further intensify the volatile situation. Given this situation, cautious investors looking for a steady income and safeguarding their capital may look to hold or buy dividend-paying stocks. Four such stocks are South Plains Financial, Inc. SPFI, Prosperity Bancshares, Inc. PB, Penske Automotive Group, Inc. PAG and Bank First Corporation BFC.
Market Volatility Could Impact Stocks
Wall Street has been on a rally lately but investors have been concerned about the economy’s health. Inflation increased in September, with the consumer price index (CPI) rising 0.2%, higher than the analysts’ expectations of a rise of 0.1%.
Year over year, CPI increased 2.4%, the smallest jump in over three and a half years. Core CPI, which excludes the volatile food and energy prices, rose 3.3% year over year, higher than the consensus estimate of a jump of 3.2%.
The Federal Reserve announced a 50-basis point rate cut last month, its first since March 2020. Market participants are hopeful about two more 25-basis-point rate cuts this year. However, a sudden jump in inflation has raised concerns about the economy’s health and fears of the Fed slowing down its rate cuts.
Also, geopolitical tensions in the Middle East have raised fears of a full-scale war between Israel and Iran. Besides, the U.S. presidential election is less than three weeks away, which could keep markets volatile for a longer period.
Stocks That Recently Announced Dividend Hikes
Given this scenario, investing in dividend-paying stocks would be a wise choice. These companies maintain strong operations and consistently provide dividends, remaining profitable on account of their reliable business models. In a highly volatile market, companies that offer high dividend payouts tend to outperform those that do not pay dividends.
South Plains Financial, Inc.
South Plains Financial, Inc. is the bank holding company for City Bank, a chartered bank. SPFI provides commercial and consumer financial services to small and medium-sized businesses and individuals. South Plains Financial’s principal business activities include commercial and retail banking along with insurance, investment trust and mortgage services. SPFI has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On Oct. 17, South Plains Financial announced that its shareholders would receive a dividend of $0.15 a share on Nov. 11, 2024. SPFI has a dividend yield of 1.59%. Over the past five years, South Plains Financialhas increased its dividend eight times, and its payout ratio at present sits at 21% of earnings. Check South Plains Financial’s dividend history here.
South Plains Financial, Inc. Dividend Yield (TTM)
South Plains Financial, Inc. dividend-yield-ttm | South Plains Financial, Inc. Quote
Prosperity Bancshares, Inc.
Prosperity Bancshares, Inc. provides a wide range of financial products and services — traditional loan and deposit products — to small and medium-sized businesses and consumers. Apart from these, PB provides digital banking solutions, credit and debit cards, mortgage services, retail brokerage services, trust and wealth management, and treasury management. Prosperity Bancshares has a Zacks Rank #3 (Hold).
On Oct. 17, Prosperity Bancshares declared that its shareholders would receive a dividend of $0.58 a share on Jan. 2, 2025. PB has a dividend yield of 3.07%. Over the past five years, Prosperity Bancshares has increased its dividend six times, and its payout ratio at present sits at 47% of earnings.Check Prosperity Banc shares’ dividend history here.
Prosperity Bancshares, Inc. Dividend Yield (TTM)
Prosperity Bancshares, Inc. dividend-yield-ttm | Prosperity Bancshares, Inc. Quote
Penske Automotive Group, Inc.
Penske Automotive Group, Inc. engages in the operation of automotive and commercial truck dealerships in the United States, the United Kingdom, Canada, Germany, Italy and Japan. PAG also distributes and retails commercial vehicles, diesel engines, gas engines, power systems and related parts and services, principally in Australia and New Zealand. It employs more than 28,000 people across the globe. PAG has a Zacks Rank #3 (Hold).
On Oct. 16, Penske Automotive Group announced that its shareholders would receive a dividend of $1.19 a share on Dec. 3, 2024. PAG has a dividend yield of 2.72%. Over the past five years, Penske Automotive Group has increased its dividend 18 times, and its payout ratio at present sits at 27% of earnings.Check Penske Automotive Group’s dividend history here.
Penske Automotive Group, Inc. Dividend Yield (TTM)
Penske Automotive Group, Inc. dividend-yield-ttm | Penske Automotive Group, Inc. Quote
Bank First Corporation
Bank First Corporation offers demand, time, savings, deposits, checking, certificates of deposit, money market accounts, loan products, treasury management services, credit cards, electronic banking services, safe deposit box, insurance agency and ATM processing. BFC has a Zacks Rank #1.
On Oct. 16, Bank First Corporationdeclared that its shareholders would receive a dividend of $0.45 a share on Jan. 6, 2025. BFC has a dividend yield of 1.69%. Over the past five years, Bank First Corporation has increased its dividend seven times, and its payout ratio at present sits at 26% of earnings.Check Bank First Corporation’s dividend history here.
Bank First National Corporation Dividend Yield (TTM)
Bank First National Corporation dividend-yield-ttm | Bank First National Corporation Quote
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
Prosperity Bancshares, Inc. (PB) : Free Stock Analysis Report
Bank First National Corporation (BFC) : Free Stock Analysis Report
South Plains Financial, Inc. (SPFI) : Free Stock Analysis Report
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