Wall Street had a rollercoaster ride over the past month. Major indexes hit fresh all-time closing highs multiple times but investors’ sentiment continues to be low. Dearth of economic data owing to the government shutdown, impact of President Donald Trump’s tariffs and uncertainty over an interest rate cut by the Federal Reserve in December have left investors with a blurry picture of the economy’s future.
Given the uncertainty, cautious investors looking for steady income and ways to protect their capital may consider holding or investing in dividend-paying stocks. Such stocks provide steady earnings through regular dividend payouts and can help mitigate the effects of market volatility. Four such stocks are CDW Corporation CDW, California Resources Corporation CRC, Exxon Mobil Corporation XOM and Entergy Corporation ETR.
Uncertainty Over Economy’s Future Continues
The Federal Reserve cut interest rates by a quarter percentage point last week for the second time this year. The move was widely anticipated but the announcement failed to help stocks. Investors’ sentiment got dented after Federal Reserve Chairman Jerome Powell cast doubts over another rate cut this year.
Although Powell didn’t rule out the possibility of a rare cut, he said that central bank officials have completely different views on how to proceed in December. The Fed’s latest rate cut was more to support a shrinking job market than inflation.
The labor market has been shrinking for a while now, which has raised fears of the economy slipping into a recession. Investors over the past month have been deprived of any key economic data owing to the ongoing government shutdown, which is now the longest in U.S. history. Presently, investors are unable to assess the labor market situation and the latest inflation, which has painted a cloudy picture of the economy’s future.
Also, Trump’s tariffs have been impacting the prices of goods. Moreover, a renewed tariff spat with China has further raised concerns among investors. These have been unsettling investors and stocks, fueling volatility.
4 Stocks That Recently Declared Dividend Hikes
CDW Corporation
CDW Corporation offers discrete hardware and software products to integrated IT solutions businesses providing mobility, security, data center optimization, cloud computing, virtualization and collaboration services. CDW has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Nov. 4, CDW Corporation announced that its shareholders would receive a dividend of $0.63 a share on Dec. 10. CDW has a dividend yield of 1.76%. Over the past five years, CDW Corporation has increased its dividend six times, and its payout ratio presently sits at 26% of earnings. Check CDW Corporation’s dividend history here.
California Resources Corporation
California Resources Corporation is an exploration and production company as well as a producer of oil and natural gas principally in California. CRC has a Zacks Rank #3.
On Nov. 4, California Resources Corporation declared that its shareholders would receive a dividend of $0.41 a share on Dec. 15. CRC has a dividend yield of 3.32%. Over the past five years, California Resources Corporation has increased its dividend four times, and its payout ratio presently sits at 34% of earnings. Check California Resources Corporation’s dividend history here.
Exxon Mobil Corporation
Exxon Mobil Corporation has undergone a significant transformation, reshaping its business to adapt to evolving energy demands, financial discipline and environmental considerations. Traditionally reliant on oil and gas, XOM has streamlined operations and focused capital on high-return, low-cost projects. XOM carries a Zacks Rank #3.
On Oct. 31, Exxon Mobil announced that its shareholders would receive a dividend of $1.03 a share on Dec. 10. XOM has a dividend yield of 3.47%. Over the past five years, Exxon Mobil has increased its dividend five times, and its payout ratio presently sits at 57% of earnings. Check Exxon Mobil’s dividend history here.
Entergy Corporation
Entergy Corporation is primarily engaged in electric power production and retail distribution of power. ETR carries a Zacks Rank #2 (Buy).
On Oct. 31, Entergy Corporationannounced that its shareholders would receive a dividend of $0.64 a share on Dec. 1. ETR has a dividend yield of 2.49%. Over the past five years, Entergy Corporationhas increased its dividend six times, and its payout ratio presently sits at 59% of earnings. Check Entergy Corporation’sdividend history here.
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Exxon Mobil Corporation (XOM): Free Stock Analysis Report Entergy Corporation (ETR): Free Stock Analysis Report CDW Corporation (CDW): Free Stock Analysis Report California Resources Corporation (CRC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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