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Major U.S. indexes, such as the Nasdaq Composite, the S&P 500, and the Dow Jones Industrial Average, have lost their ground by 13.5%, 8.6%, and 6.9%, respectively, year to date, due to President Donald Trump’s reciprocal foreign tariff policy particularly with China, where the effective tax rate is as high as 145%, investors fear rising inflation, sluggish economic growth, and a near-term recession. However, Trump has recently adopted a softer tone and signaled that import duties may be significantly reduced if a deal is reached.
The consumer sentiment for April reported by the University of Michigan was 50.8, the lowest since June 2022, mostly due to concerns over rising inflation. The core Producer Price Index (PPI) for the month of March increased by 0.3%, indicating ongoing price pressure. However, the PPI for final demand decreased by 0.4% in the same period. Retail sales in March were up 1.4%, beating the consensus estimate of 1.3%. On a year-over-year basis, retail sales were up 4.6%.
The Federal Reserve Chair Jerome Powell said that the Federal Reserve needs more clarity before making further interest rate cuts indicating delay. President Trump on the contrary wants immediate monetary policy easing by the Fed to save the economy from slipping into a recession. Market participants fear that the persistent trade conflict, along with a strong likelihood of rising inflation, could lead to slower job growth, diminished business confidence, and a deceleration of overall economic growth.
Amid such volatilemarket conditions, investors who wish to diversify their portfolios can pick dividend-paying stocks. Some of the prominent names are Synchrony Financial SYF, Peoples Bancorp PEBO, BanColombia CIB, The Travelers Companies TRV and Fomento Economico Mexicano FMX. Companies that pay out dividends consistently indicate a healthy business model. Stocks that have raised dividends recently exhibit a sound financial structure and can counter market upheavals. Stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.
Synchrony Financial
Synchrony Financial, one of the nation’s premier consumer financial services companies. It offers a wide range of credit products through a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and health and wellness providers. This Stamford, CT-based company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On April 22, SYF declared that its shareholders would receive a dividend of 30 cents a share on May 15, 2025. SYF has a dividend yield of 2.1%.
Over the past five years, SYF has increased its dividend three times, and its payout ratio presently sits at 15% of earnings. Check Synchrony Financial’s dividend history here.
Synchrony Financial dividend-yield-ttm | Synchrony Financial Quote
Peoples Bancorp
Peoples Bancorp is headquartered in Marietta, OH. This Zacks Rank #3 company is a financial holding company that provides commercial and consumer banking products and services.
On April 21, PEBO declared that its shareholders would receive a dividend of 41 cents a share on May 19, 2025. PEBO has a dividend yield of 5.7%.
In the past five years, PEBO has increased its dividend six times. Its payout ratio is currently 47% of earnings. Check Peoples Bancorp’s dividend history here.
Peoples Bancorp Inc. dividend-yield-ttm | Peoples Bancorp Inc. Quote
BanColombia
BanColombiais the largest bank in terms of assets and has the largest market participation in deposit products and loans. The Zacks Rank #3 company is headquartered in Medellín, Colombia.
On April 15, CIB announced that its shareholders would receive a dividend of 57 cents a share on May 9, 2025. CIB has a dividend yield of 36%.
Over the past five years, CIB has increased its dividend eight times. Its payout ratio now sits at 51% of earnings. Check BanColombia's dividend history here.
BanColombia S.A. dividend-yield-ttm | BanColombia S.A. Quote
The Travelers Companies
The Travelers Companies is principally engaged in providing a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States. and select international markets. This New York, NY-based company currently carries a Zacks Rank #3.
On April 16, TRV declared that its shareholders would receive a dividend of $1.10 a share on June 30, 2025. TRV has a dividend yield of 1.6%.
Over the past five years, TRV has increased its dividend six times, and its payout ratio presently sits at 22% of earnings. Check The Travelers Companies’ dividend history here.
The Travelers Companies, Inc. dividend-yield-ttm | The Travelers Companies, Inc. Quote
Fomento Economico Mexicano
Fomento Economico Mexicano operates as aproducer, markets, and distributor of Coca-Cola trademark beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina and Uruguay. The Zacks Rank #2 (Buy) company is headquartered in Monterrey, Mexico.
On April 14, FMX announced that its shareholders would receive a dividend of $1.63 a share on May 5, 2025. FMX has a dividend yield of 0.4%.
Over the past five years, FMX has increased its dividend seven times. Its payout ratio now sits at 12% of earnings. Check Fomento Economico Mexicano's dividend history here.
Fomento Economico Mexicano S.A.B. de C.V. dividend-yield-ttm | Fomento Economico Mexicano S.A.B. de C.V. Quote
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This article originally published on Zacks Investment Research (zacks.com).
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