Volatility has returned to Wall Street as escalating geopolitical tensions and a delay in interest rate cuts continue to dent investors’ sentiment. Moreover, concerns over the impact of tariffs on the nation’s economy are further making investors jittery.
Amid this ongoing uncertainty, cautious investors looking for stable income and ways to protect their capital may consider holding onto or investing in dividend-paying stocks. These stocks can offer a reliable income stream through regular dividend payouts, while also providing a buffer against market volatility.
Three such stocks are Pegasystems Inc. PEGA, National Fuel Gas Company NFG and HEICO Corporation HEI.
Fed Keeps Rates Steady Amid Uncertainty
The Federal Reserve kept its benchmark interest rates steady in June, holding them in the 4.25-4.5% range. This decision was largely anticipated, as Fed Chair Jerome Powell signaled that the central bank would adopt a wait-and-see approach before resuming any rate cuts — particularly in light of inflation risks linked to Trump’s tariffs.
The Fed also lowered its 2025 economic growth forecast to 1.4% and raised its core inflation expectation to 3.1%. Although the United States has secured a trade agreement with China, the full impact of new tariffs remains uncertain.
At the same time, escalating conflict between Israel and Iran is stoking fears of a broader regional war. After Israel’s missile strikes on Iranian nuclear facilities, reportedly killing several top scientists, Iran responded with its own missile barrage.
Although the United States has not yet become directly involved, it is mobilizing military forces in the region, and Trump is reportedly considering military action. Such developments are likely to prolong market instability.
3 Stocks That Recently Declared Dividend Hikes
Given the current climate of uncertainty, putting money into dividend-paying stocks could be a wise strategy. These companies are generally more resilient, often continuing to distribute dividends even during periods of economic instability.
Their consistent performance usually reflects strong fundamentals and well-managed operations, which make them appealing to investors who prioritize dependable returns. In volatile markets, high-dividend-paying stocks tend to deliver better results compared to non-dividend-paying peers, offering both income and a degree of stability.
Pegasystems Inc.
Pegasystems Inc. is a leading provider of Customer Relationship Management software that enables transaction-intensive organizations to manage a broad array of customer interactions. PEGA’s software enables organizations to deliver high-quality, consistent customer service across today's preferred interaction channels, from the traditional call center environment to Internet self-service. Pegasystems carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On June 17, Pegasystems announced that its shareholders would receive a dividend of $0.06 a share on July 15. PEGA has a dividend yield of 0.12%. Over the past five years, Pegasystems has increased its dividend once, and its payout ratio presently sits at 5% of earnings. Check Pegasystems’ dividend history here.
National Fuel Gas Company
National Fuel Gas Company is an integrated energy company that has natural gas assets located in the prolific Appalachian basin and oil-producing assets in California. NFG operates through the following segments, namely Exploration and Production and Other, Pipeline and Storage and Gathering, and Utility and Energy Marketing. National Fuel Gas Company has a Zacks Rank #3 (Hold).
On June 12, National Fuel Gas Company declared that its shareholders would receive a dividend of $0.54 a share on July 15. NFG has a dividend yield of 2.41%. Over the past five years, National Fuel Gas Companyhas increased its dividend six times, and its payout ratio presently sits at 55% of earnings. Check National Fuel Gas Company’s dividend history here.
HEICO Corporation
HEICO Corporation is one of the world’s leading manufacturers of Federal Aviation Administration-approved jet engine and aircraft component replacement parts. HEI also manufactures various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries. HEICO Corporation has a Zacks Rank #2 (Buy).
On June 12, HEICO Corporation announced that its shareholders would receive a dividend of $0.12 a share on July 15. HEI has a dividend yield of 0.07%. Over the past five years, HEICO Corporation has increased its dividend four times, and its payout ratio presently sits at 5% of earnings. Check HEICO Corporation’s dividend history here.
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National Fuel Gas Company (NFG): Free Stock Analysis Report Pegasystems Inc. (PEGA): Free Stock Analysis Report Heico Corporation (HEI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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