Volatility has returned to Wall Street despite all three major indexes having hit multiple record closing highs in the past few weeks. Stocks nosedived on Thursday, with indexes suffering their worst day in more than a month, triggered by a massive tech selloff.
Besides, several other uncertainties have been raising concerns about the economy’s health over the past few months.
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. Three such stocks are Pan American Silver Corp. PAAS, Amkor Technology, Inc. AMKR and Autoliv, Inc. ALV.
Wall Street Turns Volatile
The Dow and S&P 500 each declined 1.7%, while the tech-heavy Nasdaq slid 2.3% on Thursday, suffering their worst day since Oct. 10. All three indexes are now well below their all-time closing highs recorded over the past couple of weeks.
Tech stocks have been primarily responsible for the broader tech rally since 2023. Enthusiasm surrounding artificial intelligence (AI) has seen both big and small tech companies race to explore the space and grab maximum market share. Billions of dollars are being invested, and tech giants are striking deals to tap the unexplored AI space.
However, these hefty investments have raised concerns over the valuation of these AI stocks. Also, market participants are growing increasingly skeptical about another interest rate cut by the Federal Reserve this year.
Hawkish comments from Federal Reserve Chairman Jerome Powell after the October meeting have raised questions on the possibility of another rate cut in December. Market participants are pricing in a 50.1% chance of a quarter percentage point rate cut in December, which was 62.5% till a day ago, according to the CME FedWatch Tool.
3 Stocks That Recently Declared Dividend Hikes
Pan American Silver Corp.
Pan American Silver Corp. is a mining company focused exclusively on silver. PAAS Silver Corp. is founded upon a single mission to become the best vehicle for equity investors wanting to gain real exposure to higher silver prices. Pan American Silver Corp has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Nov. 12, Pan American Silver Corp. announced that its shareholders would receive a dividend of $0.14 a share on Dec. 5. PAAS has a dividend yield of 1.25%. Over the past five years, PAAS has increased its dividend four times, and its payout ratio presently sits at 26% of earnings. Check Pan American Silver Corp.’s dividend history here.
Amkor Technology, Inc.
Amkor Technology, Inc. is the world's largest independent provider of semiconductor packaging and test services. Also, AMKR is one of the leading developers of advanced semiconductor packaging and test technology. Amkor Technology has a Zacks Rank #3.
On Nov. 12, Amkor Technologydeclared that its shareholders would receive a dividend of $0.08 a share on Dec. 23. AMKR has a dividend yield of 0.96%. Over the past five years, Amkor Technology has increased its dividend five times, and its payout ratio presently sits at 26% of earnings. Check Amkor Technology’s dividend history here.
Autoliv, Inc.
Autoliv, Inc. is one of the leading players in automotive safety, specializing in passive safety systems. Operating primarily through its subsidiaries — Autoliv AB and Autoliv ASP — ALV is at the forefront of designing and manufacturing critical safety components such as airbags, seatbelts, steering wheels, and advanced inflator technologies. Autoliv carries a Zacks Rank #3.
On Nov. 10, Autoliv announced that its shareholders would receive a dividend of $0.87 a share on Dec. 10. ALV has a dividend yield of 2.73%. Over the past five years, Autoliv has increased its dividend six times, and its payout ratio presently sits at 35% of earnings. Check Autoliv’s dividend history here.
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Autoliv, Inc. (ALV): Free Stock Analysis Report Amkor Technology, Inc. (AMKR): Free Stock Analysis Report Pan American Silver Corp. (PAAS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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