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4 Stocks to Watch on Dividend Hikes as Market Volatility Continues

Markets have been volatile over the past month, with stocks struggling for direction as investors are unable to gauge the Fed’s plans with its interest rate hike policy. Fears of a recession at the end of this year have been looming large, further making market participants jittery.

The Fed hiked interest rates by 25 basis points in its May meeting to a range of 5-5.25%. Inflation, on the other hand, has started signs of easing lately, with the Consumer Price Index (CPI) rising 4.9% year over year in April compared with a 5% rise in March. This is the lowest annual rate since April 2021.

Impressive inflation data has raised hopes that the Fed might finally halt its interest rate hikes, which could begin as early as in June when the central bank officials meet for its two-day policy meeting.

However, investors are yet to get a clear picture of the Fed’s future course of action as officials in its May meeting said that it would make a decision based on the data that comes in. Although inflation has started showing signs of easing, it’s still a lot higher than the Fed’s target level of 2%.

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The U.S. economy has been slowing as multi-year-high interest rates continue to cripple industries. U.S. GDP grew a moderate 1.1% in the first quarter of 2023 compared with the consensus estimate of 2% growth.

The manufacturing sector has largely been impacted by rising rates, which is taking its toll on the economy. Although the ISM manufacturing PMI improved to 47.1 in April, the sector has been contracting for several months. In fact, the manufacturing sector declined to a three-year low in April, which speaks a lot about the economy’s health.

Stocks in Focus

Given this situation, betting on dividend-paying stocks would be a wise decision. Dividend stocks with a solid business plan and a proven track record are known for handling market volatility. An astute investor should thus consider stocks that have recently raised their dividend payments. Five such companies are LyondellBasell Industries N.V. LYB, AAON, Inc. AAON, SL Green Realty Corp. SLG and Advanced Drainage Systems, Inc. WMS.

LyondellBasell Industries N.V. is among the leading plastics, chemical and refining companies globally, with operations across 18 countries. LYB’s products are used across various industries, including electronics, automotive parts, packaging, construction materials and biofuels.

On May 19, LyondellBasell Industries announced that its shareholders would receive a dividend of $1.25 a share on Jun 6, 2023. LYB has a dividend yield of 5.25%. Over the past five years, LyondellBasell Industries has increased its dividend four times, and its payout ratio at present sits at 44% of earnings. Check LyondellBasell Industries’ dividend history here.

LyondellBasell Industries N.V. Dividend Yield (TTM)

LyondellBasell Industries N.V. Dividend Yield (TTM)
LyondellBasell Industries N.V. Dividend Yield (TTM)

LyondellBasell Industries N.V. dividend-yield-ttm | LyondellBasell Industries N.V. Quote

AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units and coils. AAON’s products serve the new construction and replacement markets. AAON, Inc. has successfully gained market share through its semi-custom product lines, which offer customers value, quality, function, serviceability and efficiency. AAON Allen has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On May 18, AAON, Inc. declared that its shareholders would receive a dividend of $0.12 a share on Jun 30, 2023. AAON has a dividend yield of 0.53%. Over the past five years, AAON, Inc. has increased its dividend three times, and its payout ratio at present sits at 22% of earnings. Check AAON, Inc.’s dividend history here.

AAON, Inc. Dividend Yield (TTM)

AAON, Inc. Dividend Yield (TTM)
AAON, Inc. Dividend Yield (TTM)

AAON, Inc. dividend-yield-ttm | AAON, Inc. Quote

SL Green Realty Corp. dominates the office real estate market of New York. SLG primarily acquires, manages, develops and leases commercial (mainly office) and residential real estate properties in the New York Metropolitan area, especially midtown Manhattan. SL Green Realtyinvestments located outside of Manhattan are known as suburban properties.

On May 18, SL Green Realty announced that its shareholders would receive a dividend of $0.27 a share on Jun 15, 2023. SLG has a dividend yield of 13.91%. Over the past five years, SL Green Realty has increased its dividend four times, and its payout ratio at present sits at 50% of earnings. Check SL Green Realty’s dividend history here.

SL Green Realty Corporation Dividend Yield (TTM)

SL Green Realty Corporation Dividend Yield (TTM)
SL Green Realty Corporation Dividend Yield (TTM)

SL Green Realty Corporation dividend-yield-ttm | SL Green Realty Corporation Quote

Advanced Drainage Systems, Inc. is a manufacturer of thermoplastic corrugated pipe, providing a comprehensive suite of water management products and drainage solutions for use in the construction and infrastructure marketplace. WMS provides single, double and triple-wall corrugated polypropylene and polyethylene pipes; and allied products comprising PVC drainage structures, fittings and filters, and water quality filters and separators.

On May 18, Advanced Drainage Systems declared that its shareholders would receive a dividend of $0.14 a share on Jun 15, 2023. WMS has a dividend yield of 0.50%. Over the past five years, Advanced Drainage Systems has increased its dividend five times, and its payout ratio at present sits at 8% of earnings. Check Advanced Drainage Systems’ dividend history here.

Advanced Drainage Systems, Inc. Dividend Yield (TTM)

Advanced Drainage Systems, Inc. Dividend Yield (TTM)
Advanced Drainage Systems, Inc. Dividend Yield (TTM)

Advanced Drainage Systems, Inc. dividend-yield-ttm | Advanced Drainage Systems, Inc. Quote

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Advanced Drainage Systems, Inc. (WMS) : Free Stock Analysis Report

SL Green Realty Corporation (SLG) : Free Stock Analysis Report

LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report

AAON, Inc. (AAON) : Free Stock Analysis Report

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