The post-election rally has come to a halt following fresh concerns over the economy’s health as inflation rose once again in November. All three major indexes have retreated from their all-time high in the past week as investors remain unclear about the Federal Reserve’s future rate cut path.
Also, geopolitical tensions have been adding to the worries, which could make markets volatile in the coming days. Given this situation, investing in dividend-paying stocks would be a wise decision. These stocks tend to perform well during market fluctuations due to their solid business strategies and proven history. A smart investor should focus on stocks that have recently raised their dividend payments.
Four such stocks are PACCAR Inc PCAR, Zoetis Inc. ZTS, Broadcom Inc. AVGO and Tecnoglass Inc. TGLS.
On Friday, the Dow clocked its seventh straight session of losses after falling 0.2% to end at 43,828.06. This comes after the blue-chip index hit an all-time high earlier this month and closed below the 44,000 mark for the first time since Nov. 21. During the week, the Dow lost 1.8%, while the S&P 500 and the Nasdaq finished 0.6% and 0.3% lower, respectively.
The decline comes as fresh data showed inflation rising in November. The consumer price index (CPI) rose 0.3% in November, recording its largest gain since April, after increasing 0.2% for four consecutive months. Year over year, CPI jumped 2.7%. Core CPI, which excludes the volatile food and energy prices, rose 0.3% sequentially in November and 3.3% year over year.
The Federal Reserve cut interest rates by 75 basis points since September and expectations are high that the central bank would announce another rate cut this week at the end of its two-day policy meeting. Market participants are betting a 97.1% chance of a 25-basis-point rate cut this week.
However, concerns have grown that the Federal Reserve could slow its pace of rate cuts in 2025. The minutes of the Fed’s November FOMC meeting also revealed that the central bank plans to cut rates “gradually” in 2025 as it believes that the economy is still on solid ground. Also, geopolitical tensions in the Middle East, following the ouster of Syrian President Bashar al-Assad and the ongoing conflict between Russia and Ukraine have been unsettling markets.
PACCAR Inc. is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. PCAR also designs and manufactures diesel engines and other powertrain components for use in its products and sale to third-party manufacturers of trucks and buses. PACCAR has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Dec. 15, PACCAR announced that its shareholders would receive a dividend of $3 a share on Jan. 18, 2025. PCAR has a dividend yield of 1.06%. Over the past five years, PACCAR has increased its dividend 11 times, and its payout ratio at present sits at 13% of earnings. Check PACCAR’s dividend history here.
PACCAR Inc. Dividend Yield (TTM)
PACCAR Inc. dividend-yield-ttm | PACCAR Inc. Quote
Zoetis Inc. is a leader in the animal health space, which focuses on livestock and companion animals in eight major product categories: vaccines, anti-infectives, parasiticides, dermatology, other pharmaceutical products, pain and sedation, medicated feed additives and animal health diagnostics. ZTS has a diversified business, which caters to eight core species — cattle, swine, poultry, fish and sheep (collectively, livestock) and dogs, cats and horses (collectively, companion animals). Zoetishas a Zacks Rank #3.
On Dec. 12, Zoetis declared that its shareholders would receive a dividend of $0.50 a share on March 4, 2025. ZTS has a dividend yield of 0.97%. Over the past five years, Zoetishas increased its dividend six times, and its payout ratio at present sits at 30% of earnings. Check Zoetis’ dividend history here.
Zoetis Inc. Dividend Yield (TTM)
Zoetis Inc. dividend-yield-ttm | Zoetis Inc. Quote
Broadcom Inc. is a premier designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products. AVGO carries a Zacks Rank #3.
On Dec. 12, Broadcom announced that its shareholders would receive a dividend of $0.59 a share on Dec. 31, 2024. AVGO has a dividend yield of 0.94%. Over the past five years, Broadcomhas increased its dividend seven times, and its payout ratio at present sits at 53% of earnings. Check Broadcom’s dividend history here.
Broadcom Inc. Dividend Yield (TTM)
Broadcom Inc. dividend-yield-ttm | Broadcom Inc. Quote
Tecnoglass Inc. is engaged in manufacturing and selling architectural glass and windows and aluminum products for the residential and commercial construction industries. TGLS operates primarily in North, Central and South America. Tecnoglass carries a Zacks Rank #2 (Buy).
On Dec. 11, Tecnoglass declared that its shareholders would receive a dividend of $0.15 a share on Jan. 31, 2025. TGLS has a dividend yield of 0.53%. Over the past five years, Tecnoglass has increased its dividend six times, and its payout ratio at present sits at 13% of earnings. Check Tecnoglass’ dividend history here.
Tecnoglass Inc. Dividend Yield (TTM)
Tecnoglass Inc. dividend-yield-ttm | Tecnoglass Inc. Quote
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