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5 Stocks in Focus on Their Recent Dividend Hike

U.S. stock markets have witnessed resumed momentum in May after a brief halt in April. Market participants witnessed an impressive 15-month rally before April. The rebound in May has taken a section of financial experts by surprise as they warned of further downside due to higher stock valuations and the Fed’s decision to keep interest rates higher for longer than expected.

Wall Street rebounded in early May following a sharp decline in April jobs additions, a notable deterioration in the U.S. GDP growth rate in first-quarter 2024, the contraction of manufacturing and services PMI in April and a less-than-hawkish statement by Fed Chairman Jerome Powell after the May FOMC meeting.

The Wall Street rally solidified further after the Department of Labor reported that the consumer price index (CPI) for the month of April rose 0.3% month over month, below the consensus estimate and March’s reading of 0.4%. Year over year, CPI increased 3.4%, in line with expectations.

The core CPI (excluding volatile food and energy items) rose 0.3% month-over-month in April, after rising 0.4% in the previous three months. April’s data showed the smallest monthly increase since December 2023. Year over year, core CPI increased 3.6%, marking the lowest monthly increase since April 2021.

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Moreover, the Department of Commerce reported that retail sales in April remained flat month over month, missing the consensus estimate of a rise of 0.4%. The reading for March was also revised downward to 0.6% from 0.7% reported earlier. Year over year, retail sales increased 3% in April.

However, we are not out of the woods. The inflation rate is still elevated. In the May FOMC meeting, almost all Fed officials wanted the existing Fed fund rate to prevail. Notably, the market interest rate has been kept static in the range of 5.25-5.5% since July 2023. Currently, the range is at its 23-year high.

More importantly, some policymakers argued that rates should be increased if needed. "Various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate,” according to the minutes of the last FOMC meeting.

Stocks in Focus

At this stage, dividend-paying stocks should be in demand as investors try to safeguard their portfolios. We believe one should consider stocks that have recently raised their dividend payments.

Five such companies are — Marriott International Inc. MAR, Curtiss-Wright Corp. CW, HNI Corp. HNI, Taiwan Semiconductor Manufacturing Co. Ltd. TSM and Northrop Grumman Corp. NOC.

Marriott International has been benefiting from robust leisure demand and solid global booking trends. MAR’s substantial RevPAR growth in international markets added to the upside. Also, the emphasis on expansion initiatives, digital innovation and the loyalty program bodes well.

Marriott International is optimistic about its partnership with MGM Resorts and expects it to contribute to 2024 net room growth between 5.5% and 6%, year over year. MAR aims to strengthen engagement with members beyond hotel stays through successful collaborations within the Marriott Bonvoy ecosystem, including co-branded credit cards. MAR currently carries a Zacks Rank #3 (Hold).

On May 10, 2024, Marriott International declared that its shareholders would receive a dividend of $0.63 per share on Jun 28, 2024. It has a dividend yield of 1.1%. Over the past five years, MAR has increased its dividend three times, and its payout ratio presently stays at 21% of earnings. Check MAR’s dividend history here.

Marriott International, Inc. Dividend Yield (TTM)

Marriott International, Inc. Dividend Yield (TTM)
Marriott International, Inc. Dividend Yield (TTM)

Marriott International, Inc. dividend-yield-ttm | Marriott International, Inc. Quote

Curtiss-Wright provides engineered products, solutions, and services mainly to aerospace and defense, commercial power, process, and industrial markets worldwide. CW operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power.

Curtiss-Wright expects to witness high-single-digit growth for its commercial nuclear market in 2024. The rise in U.S. defense spending should benefit CW as it is involved in the construction of nuclear-powered aircraft carriers. CW currently carries a Zacks Rank #2 (Buy).

On May 10, 2024 Curtiss-Wright declared that its shareholders would receive a dividend of $0.42 per share on Jul 5, 2024. It has a dividend yield of 0.3%. Over the past five years, CW has increased its dividend five times, and its payout ratio presently stays at 8% of earnings. Check CW’s dividend history here.

Curtiss-Wright Corporation Dividend Yield (TTM)

Curtiss-Wright Corporation Dividend Yield (TTM)
Curtiss-Wright Corporation Dividend Yield (TTM)

Curtiss-Wright Corporation dividend-yield-ttm | Curtiss-Wright Corporation Quote

HNI manufactures products and solutions for the home and workplace environments. It is a leading global provider and designer of office furniture and the leading manufacturer and marketer of hearth products. Currently, HNI sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

HNI sells the broadest and deepest selection of quality office furniture solutions available to meet the needs of every customer through an extensive portfolio of well-known and trusted brands. HNI hearth products are the strongest, most respected brands in the industry and include a full array of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings and accessories.

On May 13, 2024 HNI declared that its shareholders would receive a dividend of $0.33 per share on Jun 12, 2024. It has a dividend yield of 2.8%. Over the past five years, HNI has increased its dividend three times, and its payout ratio presently stays at 45% of earnings. Check HNI’s dividend history here.

HNI Corporation Dividend Yield (TTM)

HNI Corporation Dividend Yield (TTM)
HNI Corporation Dividend Yield (TTM)

HNI Corporation dividend-yield-ttm | HNI Corporation Quote

Taiwan Semiconductor Manufacturing is the world's largest dedicated integrated circuit foundry. As a foundry, TSM manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes.

TSM's goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths that have made it the leading IC foundry in the world. TSM currently carries a Zacks Rank #3.

On May 14, 2024 Taiwan Semiconductor Manufacturing declared that its shareholders would receive a dividend of $0.4865 per share on Oct 9, 2024. It has a dividend yield of 1.2%. Over the past five years, TSM has increased its dividend 15 times, and its payout ratio presently stays at 33% of earnings. Check TSM’s dividend history here.

Taiwan Semiconductor Manufacturing Company Ltd. Dividend Yield (TTM)

Taiwan Semiconductor Manufacturing Company Ltd. Dividend Yield (TTM)
Taiwan Semiconductor Manufacturing Company Ltd. Dividend Yield (TTM)

Taiwan Semiconductor Manufacturing Company Ltd. dividend-yield-ttm | Taiwan Semiconductor Manufacturing Company Ltd. Quote

Northrop Grumman boasts a strong presence in the Air Force and Space & Cyber Security programs, with its renowned products like B-21 and Triton enjoying a solid market demand. NOC ended the first quarter with a strong backlog of $78.92 billion. Solid U.S. budgetary provisions should boost NOC’s future revenues. Northrop Grumman holds a strong solvency position. NOC currently carries a Zacks Rank #3.

On May 14, 2024 Northrop Grumman declared that its shareholders would receive a dividend of $2.06 per share on Jun 12, 2024. It has a dividend yield of 1.6%. Over the past five years, TSM has increased its dividend six times, and its payout ratio presently stays at 31% of earnings. Check NOC’s dividend history here.

Northrop Grumman Corporation Dividend Yield (TTM)

Northrop Grumman Corporation Dividend Yield (TTM)
Northrop Grumman Corporation Dividend Yield (TTM)

Northrop Grumman Corporation dividend-yield-ttm | Northrop Grumman Corporation Quote

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Northrop Grumman Corporation (NOC) : Free Stock Analysis Report

Marriott International, Inc. (MAR) : Free Stock Analysis Report

Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report

Curtiss-Wright Corporation (CW) : Free Stock Analysis Report

HNI Corporation (HNI) : Free Stock Analysis Report

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