5 Stocks in Focus on Their Recent Dividend Hike
Wall Street closed sharply lower last week following the collapse of the biggest regional bank since the days of the great recession. The Dow slid 4.4%, marking its biggest weekly decline since June 2022. The S&P 500 shed 4.6%, reflecting its largest weekly drop since September 2022. The Nasdaq Composite tumbled 4.7%, posting the single-largest weekly fall since November 2022.
The privately controlled Silicon Valley Bank is a subsidiary of the SVB Financial Group (SIVB). The 40-year-old highly respected regional bank, which lends primarily to technology and biotechnology startups, was the first major victim of the aggressive interest rate hike policies adopted by the Fed to combat record-high inflation.
On Mar 9, Silvergate Capital Corp. (SI), a major lender to the crypto industry, announced that it would be shutting down operations and liquidating its bank. Consequently, the U.S. government took control of the deposits of Signature Bank (SBNY).
Last weekend, a joint statement from the Fed, Treasury Department and the Federal Deposit Insurance Corp. said all Silicon Valley Bank and Signature Bank depositors would be able to access their money starting Mar 13. Moreover, the Fed is in the process of creating a new Bank Term Funding Program in order to safeguard deposits. The facility will offer loans of up to one year to banks, saving associations, credit unions and other institutions.
Stocks in Focus
At this stage, dividend-paying stocks should be in demand as investors will try to safeguard their portfolios. We believe that one should consider stocks that have recently raised their dividend payments. Five such companies are DICK'S Sporting Goods Inc. DKS, Travel + Leisure Co. TNL, Johnson Controls International plc JCI, American Express Co. AXP and GeoPark Ltd. GPRK.
DICK'S Sporting Goods has witnessed growth on a two-year basis, driven by strength in its core strategies. As a result, DKS raised the fiscal 2022 view. DICK'S Sporting Goods’ store expansion initiatives, driven by DICK'S House of Sport, Golf Galaxy Performance Center, Public Lands and Going, Going, Gone! Stores, bode well. DKS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Mar 6, 2023, DICK'S Sporting Goods declared that its shareholders would receive a dividend of $1 per share on Mar 31, 2023. It has a dividend yield of 2.7%. Over the past five years, DKS has increased its dividend six times, and its payout ratio presently stays at 16% of earnings. Check DKS’ dividend history here.
DICK'S Sporting Goods, Inc. Dividend Yield (TTM)
DICK'S Sporting Goods, Inc. dividend-yield-ttm | DICK'S Sporting Goods, Inc. Quote
Travel + Leisure provides hospitality services and products in the United States and internationally. TNL operates in two segments, Vacation Ownership, and Travel and Membership. TNL currently carries a Zacks Rank #3 (Hold).
The Vacation Ownership segment develops, markets, and sells vacation ownership interests to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts.
The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions.
On Mar 8, 2023, Travel + Leisure declared that its shareholders would receive a dividend of $0.45 per share on Mar 31, 2023. It has a dividend yield of 3.9%. Over the past five years, TNL has increased its dividend six times, and its payout ratio presently stays at 35% of earnings. Check TNL’s dividend history here.
Travel + Leisure Co. Dividend Yield (TTM)
Travel + Leisure Co. dividend-yield-ttm | Travel + Leisure Co. Quote
Johnson Controls is engaged in engineering, manufacturing, commissioning, and retrofitting building products and systems in the United States, Europe, the Asia Pacific, and internationally. JCI operates in four segments: Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific, and Global Products.
Johnson Controls mainly designs, sells, installs, and services heating, ventilating, air conditioning, controls, building management, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and fire protection and security products for commercial, industrial, retail, small business, institutional, and governmental customers. JCI currently carries a Zacks Rank #3.
On Mar 8, 2023, Johnson Controls declared that its shareholders would receive a dividend of $0.36 per share on Apr 14, 2023. It has a dividend yield of 2.2%. Over the past five years, JCI has increased its dividend four times, and its payout ratio presently stays at 45% of earnings. Check JCi’s dividend history here.
Johnson Controls International plc Dividend Yield (TTM)
Johnson Controls International plc dividend-yield-ttm | Johnson Controls International plc Quote
American Express has benefitted from several growth initiatives, such as launching new products, enhancing existing features, reaching new agreements and forging alliances, boosting its revenues. AXP currently carries a Zacks Rank #3.
Consumer spending on travel and entertainment, which carry higher margins for American Express, is advancing well. AXP’s balance sheet looks strong with manageable debt. Solid cash-generation abilities enable the pursuit of business investments and capital deployment.
On Mar 8, 2023, American Express declared that its shareholders would receive a dividend of $0.60 per share on May 10, 2023. It has a dividend yield of 1.4%. Over the past five years, AXP has increased its dividend four times, and its payout ratio presently stays at 21% of earnings. Check AXP’s dividend history here.
American Express Company Dividend Yield (TTM)
American Express Company dividend-yield-ttm | American Express Company Quote
GeoPark is engaged in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, and Ecuador. GPRK has a strategic partnership with ONGC Videsh to jointly acquire, invest in, and create value from upstream oil and gas projects across Latin America. GPRK currently carries a Zacks Rank #3.
On Mar 8, 2023, GeoPark declared that its shareholders would receive a dividend of $0.13 per share on Mar 31, 2023. It has a dividend yield of 4.2%. Over the past five years, GPRK has increased its dividend six times, and its payout ratio presently stays at 13% of earnings. Check GPRK’s dividend history here.
Geopark Ltd Dividend Yield (TTM)
Geopark Ltd dividend-yield-ttm | Geopark Ltd Quote
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