Wall Street has remained volatile since the beginning of the year, despite all three major indexes hitting new highs. The volatility has intensified over the past two weeks, with indexes giving up most of their gains this year.
The volatility stemmed from a large number of domestic factors, including higher inflation and higher borrowing rates, as well as geopolitical tensions. 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: The New York Times Company NYT, Yum China Holdings, Inc. YUMC and Esquire Financial Holdings, Inc. ESQ.
Economic Uncertainty Weighs on Markets
Markets have been taking a major hit over the past few sessions, with tech stocks bleeding the most. Investors have been rotating out of riskier assets, such as tech stocks and Bitcoin, to safe-haven stocks.
On Thursday, the S&P 500 shed 1.23%, to finish at 6,798.40 points and entered negative territory for the year. The Dow and Nasdaq also declined 1.2% and 1.6%, respectively. Also, the cryptocurrency slump intensified, with Bitcoin falling below $64,000. The cryptocurrency lost nearly 50% in the last three months after hitting an all-time high of $126,000 in October.
The broader market decline comes amid growing concerns over a weakening economy and a shrinking job market. The Bureau of Labor Statistics reported on Thursday that job openings in December totaled 6.54 million, a drop of 386,000 from November, hitting the lowest level since September 2020.
Also, jobless claims came in at 231,000 for the last week of January, up 22,000 from the week earlier and higher than the consensus estimate of 212,000. Besides, U.S. companies announced 108,435 layoffs in January, the highest January total since the global financial crisis, according to outplacement firm Challenger, Gray & Christmas, as reported by CNBC.
The Federal Reserve left interest rates unchanged in January after slashing rates by a total of 75 basis points last year. High inflation has been posing a challenge for the Fed to loosen its monetary policy, which has further raised worries.
3 Stocks That Recently Announced Dividend Hikes
The New York Times Company
The New York Times Company operates as a diversified media company that comprises newspapers, Internet businesses and other investments. NYT ended third-quarter 2025 with 12.33 million subscribers across its print and digital products, including 11.76 million digital-only subscribers. The New York Times Company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Feb. 4, The New York Times Company announced that its shareholders would receive a dividend of $0.23 a share on Apr. 16. NYT has a dividend yield of 1.06%. Over the past five years, The New York Times has increased its dividend six times, and its payout ratio presently sits at 30 of earnings. Check The New York Times Company’s dividend history here.
Yum China Holdings
Yum China Holdings operates both company-owned and franchised restaurants. YUMC’s brands include The KFC, Pizza Hut and Taco Bell. The company also owns East Dawning, Little Sheep and COFFii & JOY. Yum China Holdings carries a Zacks Rank #2.
On Feb. 4, Yum China Holdings declared that its shareholders would receive a dividend of $0.29 a share on Mar. 25. YUMC has a dividend yield of 1.81%. Over the past five years, Yum China Holdings has increased its dividend four times, and its payout ratio presently sits at 40% of earnings. Check Yum China Holdings’ dividend history here.
Esquire Financial Holdings, Inc.
Esquire Financial Holdings, Inc. is a bank holding company. ESQ provides banking products and services to law professionals, professional service firms, small to mid-sized businesses and individuals primarily in the United States.
On Feb. 4, Esquire Financial Holdingsannounced that its shareholders would receive a dividend of $0.20 a share on Mar. 2. ESQ has a dividend yield of 0.60%. Over the past five years, Esquire Financial Holdingshas increased its dividend five times, and its payout ratio presently sits at 12% of earnings. Check Esquire Financial Holdings’ dividend history here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The New York Times Company (NYT): Free Stock Analysis Report Yum China (YUMC): Free Stock Analysis Report Esquire Financial Holdings, Inc. (ESQ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
