U.S. stocks rebounded this week on optimism that trade tensions between the United States and China will ease in the coming days once the two trading partners initiate negotiations and reach a deal. However, the rebound came after Wall Street suffered weeks of turmoil that saw major indexes enter correction territory on fears of a large-scale trade war.
Earlier this month, President Donald Trump announced a 90-day halt on reciprocal tariffs, which brought some temporary relief to investors. However, concerns over the economy’s health are far from over and trade talks between the United States and its trading partners are at a nascent stage.
Volatility in the markets could thus continue for a longer period. Given this uncertainty, cautious investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Three such stocks are Univest Financial Corporation UVSP, ACNB Corporation ACNB and QUALCOMM Incorporated QCOM.
Uncertainty Over Economy’s Health Continues
Investor sentiment got a boost this week after both Trump and Treasury Secretary Scott Bessent said that trade tensions could ease as the White House is ready to start negotiations with China. Both Trump and Bessent also said that the current 145% tariffs on Chinese goods would come down substantially once a trade deal is reached.
Also, investors’ worries flared up after Trump recently slammed Federal Reserve Chairman Jerome Powell for not initiating interest rate cuts to help the economy from slipping into a recession. He even called for Powell’s firing, igniting fears among investors that the central bank could lose its autonomy. However, Trump assured investors on Tuesday that he has no plan to fire Powell.
Investors breathed a sigh of relief after this and markets have somewhat recovered. However, the recent surge comes after weeks of turmoil on Wall Street that saw the Nasdaq enter correction territory and the S&P 500 fall into bear market. The S&P 500 came out of the bear market on Wednesday but the crisis is far from over.
The halt in tariffs is temporary, and investors are still clueless about how the new tariffs will shape up after negotiations. Also, China has yet to show any interest in trade talks with Washington, and it’s unclear whether negotiations will start anytime soon. Also, despite a decline in inflation in March, the Federal Reserve is still undecided on when to resume rate cuts. This could keep markets volatile for a longer period.
3 Stocks That Recently Declared Dividend Hikes
Given the ongoing uncertainty, investing in stocks that pay dividends could be a wise decision. Such companies usually remain stable, consistently paying out dividends while sustaining profitability through strong business strategies. In a fluctuating market, companies that provide significant dividend payments often outperform those that do not.
Univest Financial Corporation
Univest Financial Corporation is a bank holding company. UVSP owns all of the capital stock of Union National Bank and Trust Company, Pennview Savings Bank, Univest Realty Corporation, Univest Leasing Corporation, Univest Delaware, Inc., Univest Financial Services Corporation, Univest Insurance Company, and Univest Electronic Services Corporation. Univest Financial Corporation sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On April 23, Univest Financial Corporation announced that its shareholders would receive a dividend of $0.22 a share on May 21. UVSP has a dividend yield of 2.95%. Over the past five years, Univest Financial Corporation has increased its dividend two times, and its payout ratio presently sits at 34% of earnings. Check Univest Financial Corporation’s dividend history here.
ACNB Corporation
ACNB Corporation operates as a provider of banking and financial services to individuals and businesses. ACNB’s personal banking services include deposits, online banking, bill payment, telephone banking, debit cards, reorder checks and other services. Business banking services provided by ACNB Corporation include deposits, cash management, internet banking, business check cards, fast remote electronic deposits and merchant services. ACNB sports a Zacks Rank #1.
On April 23, ACNB Corporation declared that its shareholders would receive a dividend of $0.34 a share on June 12. ACNB has a dividend yield of 3.07%. Over the past five years, ACNB Corporation has increased its dividend six times, and its payout ratio at present sits at 34% of earnings. Check ACNB Corporation’s dividend history here.
QUALCOMM Incorporated
QUALCOMM Incorporated is a fabless semiconductor company. QCOM’s primary division, QTI (Qualcomm Technologies, Inc.) designs high-performance, low-power chip designs for mobile devices, PCs, XR, automotive, embedded, wearable, robotics, connectivity, and AI use cases. QUALCOM has a Zacks Rank #2 (Buy).
On April 21, QUALCOMM announced that its shareholders would receive a dividend of $0.89 a share on June 26. QCOM has a dividend yield of 2.42%. Over the past five years, QUALCOMMhas increased its dividend six times, and its payout ratio at present sits at 38% of earnings. Check QUALCOMM’s dividend history here.
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QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Univest Corporation of Pennsylvania (UVSP): Free Stock Analysis Report ACNB Corporation (ACNB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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