The post-election Wall Street rally has come to a halt as investors reassess the economy’s health and gauge the Federal Reserve’s pace of future rate cuts. The uncertainty has seen markets turn volatile over the past week, with all three major indexes retreating from their new record highs.
Given this situation, cautious investors looking for a steady income and safeguarding their capital may look to hold or buy dividend-paying stocks. Four such stocks are Churchill Downs Incorporated CHDN, La-Z-Boy Incorporated LZB, McCormick & Company, Incorporated MKC and Assurant, Inc. AIZ.
Inflation Rises Halting Wall Street Rally
Stocks rallied for two weeks after Donald Trump’s victory in the U.S. Presidential election, with the Dow and S&P 500 hitting news milestones. The Dow closed above $44,000 for the first time early last week, while the S&P 500 crossed the 6,000 mark. The tech-heavy Nasdaq also hit an individual high.
However, investors’ sentiment took a hit after the release of fresh data, which showed that inflation rose in October. The consumer price index (CPI) rose 0.2% month over month in October and 2.6% on a year-over-year basis. October’s monthly inflation reading was up 0.2% from September. Core CPI, which excludes the volatile food and energy costs, rose 0.3% month over month and 3.3% from the year-ago levels.
Stocks have pulled back from their previous highs due to increasing worries about the economy’s stability. While inflation has eased significantly in the past year, it remains above the Fed's 2% target, which may lead the central bank to reconsider its plans for future rate cuts.
The current market volatility is also being driven by concerns that the Federal Reserve may slow the pace of its rate cuts going forward. Since September, the Fed has slashed interest rates by 75 basis points, bringing its benchmark rate to a range of 4.5-4.75%. However, last week, Federal Reserve Chairman Jerome Powell said that the central bank does not need to "hurry" into cutting rates as long as the economic data supports such a move.
4 Stocks That Announced Dividend Hikes
Given this situation, investing in dividend-paying stocks would be a smart decision. These companies have stable operations and consistently pay out dividends, staying profitable due to their reliable business models. In a volatile market, companies that offer high dividend payouts generally perform better than those that don't pay dividends.
Churchill Downs Incorporated
Churchill Downs Incorporated the world's most legendary racetrack, has conducted Thoroughbred racing and presented America's greatest race, the Kentucky Derby. CHDN has Five racetracks; Six casinos; Big Fish Games, the world's largest distributor of casual games; The country's leading online wagering business, TwinSpires.com; A video poker business, A multi-state network of off-track betting facilities; and a collection of racing-related data, totalisator and telecommunication Churchill Downs presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Nov. 20, Churchill DownsInc. announced that its shareholders would receive a dividend of $0.41 a share on Jan. 3, 2025. CHDN has a dividend yield of 0.28%. Over the past five years, Churchill DownsInc. has increased its dividend six times, and its payout ratio at present sits at 7% of earnings.Check Churchill Downs Incorporated’s dividend history here.
La-Z-Boy Incorporated
La-Z-Boy Incorporated is one of the world's leading residential furniture producers, marketing furniture for every room of the home. LZB’s Upholstery segment companies are La-Z-Boy and England. The Casegoods segment consists of three brands: American Drew, Hammary and Kincaid. La-Z-Boy Incorporated has a Zacks Rank #3.
On Nov. 19, La-Z-Boy declared that its shareholders would receive a dividend of $0.22 a share on Dec. 16, 2024. LZB has a dividend yield of 1.89%. Over the past five years, La-Z-Boy has increased its dividend seven times, and its payout ratio at present sits at 27% of earnings.Check La-Z-Boy Incorporated’s dividend history here.
McCormick & Company, Incorporated
McCormick & Company, Incorporated is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors to the entire food industry across the entire globe. MKC’s key sales, distribution and production facilities are located in North America and Europe.
On Nov. 19, McCormick & Company announced that its shareholders would receive a dividend of $0.45 a share on Jan. 13, 2025. MKC has a dividend yield of 2.23%. Over the past five years, McCormick & Companyhas increased its dividend six times, and its payout ratio at present sits at 56% of earnings.Check McCormick & Company’s dividend history here.
Assurant, Inc.
Assurant, Inc is a global provider of risk management solutions in the housing and lifestyle markets, protecting where people live and the goods they buy. AIZ operates in North America, Latin America, Europe and Asia Pacific. Assurant was incorporated as a Delaware corporation in 2004.
On Nov. 19, Assurant declared that its shareholders would receive a dividend of $0.80 a share on Dec. 30, 2024. AIZ has a dividend yield of 1.31%. Over the past five years, Assurant has increased its dividend six times, and its payout ratio at present sits at 18% of earnings.Check Assurant’s dividend history here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Assurant, Inc. (AIZ) : Free Stock Analysis Report
McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report
La-Z-Boy Incorporated (LZB) : Free Stock Analysis Report
Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
