U.S. investor sentiment is clouded with concerns over inflation, interest rates and the recent banking plight. In the past month, the Dow has lost 0.80%, while the S&P 500 and the Nasdaq have added 0.03% and 2.27%.
The Consumer Price Index rose 0.4% in February and 6% from a year ago, mostly due to persistently higher rent followed by food and energy prices. Responding to the current scenario, the Fed, in its recent policy meeting, increased key interest rates by 25 basis points to meet its obligation against its inflation expectation of 2% in the long run.
With this, the Fed has increased its benchmark overnight interest rate since last March by 475 basis points from the near-zero level to the current 4.75-5.00% range, the highest in 15 years.
The banking collapse in the United States, which started with the Silicon Valley Bank, followed by Signature Bank and later on Credit Suisse, turned out to be the biggest since the financial crisis in 2008. The federal government had to step in to ensure depositors’ interest. The question now is whether the Fed has overstepped with its aggressive rate hike stances.
The U.S. baking crisis has been felt beyond Wall Street in the United Kingdom, Europe and China. Also, the global energy crisis and supply-chain challenges remain major threats to business.
Thus, investors looking for regular income and capital preservation can invest in mature businesses, which pay out regular dividends. Amid adverse economic conditions, these stocks remain profitable due to their proven business models.
Companies, which tend to reward investors with a high dividend payout, outperform non-dividend-paying stocks during market volatility. Investors can expect a regular flow of income in volatile market conditions.
On that note, let us look at companies like Oxford Industries OXM, BRP DOOO, MidAmerica Apartment Communities MAA, and SL Green Realty SLG, which have lately hiked their dividend payouts.
Oxford Industries is an apparel company. Zacks Rank #3 (Hold) Oxford Industries designs, sources, markets and distributes products bearing the trademarks of its owned and licensed brands. You can see the complete list of today’s Zacks #1 Rank stocks here.
On Mar 23, OXM declared that its shareholders would receive a dividend of 65 cents a share on Apr 28. OXM has a dividend yield of 2.11%.
Over the past five years, OXM has increased its dividend six times, and its payout ratio at present sits at 20% of earnings. Check Oxford Industries’ dividend history here.
Oxford Industries, Inc. Dividend Yield (TTM)
Oxford Industries, Inc. dividend-yield-ttm | Oxford Industries, Inc. Quote
BRP is a designer, developer, manufacturer and distributor of recreational vehicles. This Zacks Rank #2 (Buy) company offers watercraft, sport boats, snowmobiles, pontoons, marine propulsion systems and all-terrain and utility vehicles, as well as engines for karts, motorcycles and recreational aircraft.
On Mar 22, DOOO declared that its shareholders would receive a dividend of 13 cents a share on Apr 17, 2023. DOOO has a dividend yield of 0.64%.
Over the past five years, DOOO has increased its dividend nine times, and its payout ratio presently sits at 5% of earnings. Check BRP’s dividend history here.
BRP Inc. Dividend Yield (TTM)
BRP Inc. dividend-yield-ttm | BRP Inc. Quote
MidAmerica Apartment Communities is a residential real estate investment trust (REIT). This Zacks Rank #3 company is engaged in owning, acquiring, operating and selectively developing apartment communities, primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States.
On Mar 21, MAA announced that its shareholders would receive a dividend of $1.40 a share on Apr 28, 2023. MAA has a dividend yield of 3.90%.
Over the past five years, MAA has increased its dividend six times. Its payout ratio now sits at 59% of earnings. Check MidAmerica Apartment Communities’ dividend history here.
Mid-America Apartment Communities, Inc. Dividend Yield (TTM)
Mid-America Apartment Communities, Inc. dividend-yield-ttm | Mid-America Apartment Communities, Inc. Quote
SL Green Realty is a fully integrated REIT. This Zacks Rank #3 company primarily acquires, manages, develops and leases commercial (mainly office) and residential real estate properties in the New York Metropolitan area, especially midtown Manhattan.
On Mar 20, SLG declared that its shareholders would receive a dividend of 27 cents a share on Apr 17, 2023. SLG has a dividend yield of 15.75%.
In the past five-year period, SLG has increased its dividend four times. Its payout ratio at present sits at 49% of earnings. Check SL Green Realty’s dividend history.
SL Green Realty Corporation Dividend Yield (TTM)
SL Green Realty Corporation dividend-yield-ttm | SL Green Realty Corporation Quote
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