Wall Street has been on a rally lately, with major indexes hitting new all-time closing highs. Optimism surrounding trade deals and a robust earnings season has been boosting investors’ confidence.
However, concerns over the economy’s health haven’t subsided. Inflation remains elevated, and the Federal Reserve is unlikely to cut interest rates at its July policy meeting. Additionally, uncertainty over the impact of new tariffs has kept investors on edge. This could turn the markets volatile again.
Given this scenario, cautious investors seeking steady income and ways to protect their capital might opt to retain or invest in dividend-paying stocks. These stocks can deliver consistent earnings through regular dividends and help cushion the impact of market fluctuations. Four such stocks are Teck Resources Limited TECK, Republic Services, Inc. RSG, Iridium Communications Inc. IRDM and Comfort Systems USA, Inc. FIX.
Fed Unlikely to Cut Interest Rates
A slew of impressive economic data released over the past two weeks hints at a still solid economy. Retail sales jumped 0.6% month over month in June, suggesting that investors are willing to spend despite price pressures. Trump’s tariffs have already been showing their impact, but consumer spending on retail goods remained robust.
Meanwhile, inflation increased in June, with the consumer price index (CPI) rising 0.3% month over month, after increasing 0.1% in May. The jump in inflation is being attributed to a rise in the price of consumer goods due to Trump’s tariffs.
However, robust retail sales will give the Federal Reserve cover to keep its interest rates unchanged in the range of 4.25-4.5% in its two-day July policy meeting, which begins on July 29.
Also, uncertainty over the impact of Trump’s fresh tariffs that come into effect after the Aug. 1 deadline has raised concerns among market participants. High inflation and a delay in interest rate cuts could turn markets volatile again.
4 Stocks That Recently Announced Dividend Hikes
Teck Resources Limited
Teck Resources Limited is committed to mining and mineral development with business units focused on copper and zinc. TECK is also a leading producer of lead and a significant producer of specialty metals such as germanium, indium and cadmium. It also produces gold ore and silver. Teck Resources Limited has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On July 25, Teck Resources Limited announced that its shareholders would receive a dividend of $0.09 a share on Sept. 29. TECK has a dividend yield of 1.10%. Over the past five years, Teck Resources Limited has increased its dividend 10 times, and its payout ratio presently sits at 25% of earnings. Check Teck Resources Limited’s dividend history here.
Republic Services
Republic Services, Inc. is a leading provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services. The company generates revenues mainly from its solid waste collection operations. Republic Services has a Zacks Rank #3.
On July 25, Republic Services declared that its shareholders would receive a dividend of $0.63 a share on Oct. 15. RSG has a dividend yield of 0.95%. Over the past five years, Republic Services has increased its dividend six times, and its payout ratio presently sits at 35% of earnings. Check Republic Services’ dividend history here.
Iridium Communications
Iridium Communications Inc. is a satellite communications company that offers dedicated commercial global voice and data communications services to both businesses and governments in the United States as well as globally. IRDM also works with non-governmental organizations. IRDM carries a Zacks Rank #3.
On July 25, Iridium Communications announced that its shareholders would receive a dividend of $0.15 a share on Sept. 30. IRDM has a dividend yield of 2.18%. Over the past five years, Iridium Communications has increased its dividend two times, and its payout ratio presently sits at 57% of earnings. Check Iridium Communications’ dividend history here.
Comfort Systems USA
Comfort Systems USA, Inc. is a national provider of comprehensive heating, ventilation and air conditioning installation, maintenance, repair and replacement services. FIX operates primarily in the commercial and industrial HVAC markets, and performs most of its services within manufacturing plants, office buildings, retail centers, apartment complexes, and healthcare, education and government facilities. Comfort Systems USA carries a Zacks Rank #1.
On July 25, Comfort Systems USA declared that its shareholders would receive a dividend of $0.50 a share on Sept. 30. FIX has a dividend yield of 0.26%. Over the past five years, Comfort Systems USA has increased its dividend 15 times, and its payout ratio presently sits at 9% of earnings. Check Comfort Systems USA’s dividend history here.
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Republic Services, Inc. (RSG): Free Stock Analysis Report Iridium Communications Inc (IRDM): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report Teck Resources Ltd (TECK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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