Watch These 5 Stocks That Recently Hiked Their Dividends
Wall Street ended the first month of 2023 with a solid rally after a highly disappointing 2022. Favorable data for several measures of inflation, various soft economic data and a resilient labor market raised market participants’ hope for a soft landing of the U.S. economy.
On Feb 1, in its February FOMC meeting, the Fed hiked the benchmark interest rate by 25 basis points to the range of 4.50% to 4.75%, marking its highest rate since late 2007. Fed Chair Jerome Powell said “We can now say I think for the first time that the disinflationary process has started.
However, it would be very premature to declare victory or to think we really got this.”
Powell categorically denied any possibility of a rate cut in 2023. The Fed Chairman said “While recent developments are encouraging, we will need substantially more evidence to be confident that inflation is on a sustained downward path.” Powell hinted at a few more interest rate hikes in 2023.
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 HCA Healthcare Inc. HCA, Booz Allen Hamilton Holding Corp. BAH, GATX Corp. GATX, NXP Semiconductors N.V. NXPI and MSCI Inc. MSCI.
HCA Healthcare is the largest non-governmental operator of acute care hospitals in the United States. HCA’s revenues are bouncing back, courtesy of a surge in admissions, outpatient surgeries and other procedures.
Multiple buyouts aided HCA Healthcare in increasing patient volumes, enabled network expansion, added hospitals to its portfolio and boosted business scale. HCA has been gaining from its telemedicine business line.
On Jan 27, 2023, HCA Healthcare declared that its shareholders would receive a dividend of $0.60 per share on Mar 31, 2023. It has a dividend yield of 0.9%. Over the past 5 years, HCA has increased its dividend six times, and its payout ratio presently stays at 13% of earnings. Check HCA’s dividend history here.
HCA Healthcare, Inc. Dividend Yield (TTM)
HCA Healthcare, Inc. dividend-yield-ttm | HCA Healthcare, Inc. Quote
Booz Allen Hamilton is a provider of management and technology consulting, analytics, engineering, digital solutions, mission operations as well as cyber expertise to the United States and international governments, corporations plus not-for-profit organizations.
BAH is in the process of implementing Vision 2020 which is aimed at achieving sustainable long-term growth. Booz Allen Hamilton is witnessing significantly higher backlog growth, shift in talent to more technical expertise, a strong performance in the global commercial market and disciplined acquisition.
BAH is also trying hard in innovation areas like artificial intelligence, advanced engineering, directed energy and modern digital platforms thereby ensuring business development over the long haul.
On Jan 27, 2023, Booz Allen Hamilton declared that its shareholders would receive a dividend of $0.47 per share on Mar 1, 2023. It has a dividend yield of 2%. Over the past 5 years, BAH has increased its dividend seven times, and its payout ratio presently stays at 40% of earnings. Check BAH’s dividend history here.
Booz Allen Hamilton Holding Corporation Dividend Yield (TTM)
Booz Allen Hamilton Holding Corporation dividend-yield-ttm | Booz Allen Hamilton Holding Corporation Quote
GATX leases, operates and manages long-lasting, widely used assets in rail, marine and industrial equipment markets. The gradual improvement in the North American railcar leasing market is aiding GATX’s top line. Demand for the majority of railcar types in GATX's fleet remains robust, and absolute lease rates have been increasing.
For 2023, GATX anticipates the railcar leasing environment in North America to remain favorable. Consistent dividend payouts highlight GATX's commitment to boosting shareholder value, and underscores its strong financial condition and bright prospects.
On Jan 27, 2023, GATX declared that its shareholders would receive a dividend of $0.55 per share on Mar 31, 2023. It has a dividend yield of 2%. Over the past 5 years, GATX has increased its dividend six times, and its payout ratio presently stays at 34% of earnings. Check GATX’s dividend history here.
GATX Corporation Dividend Yield (TTM)
GATX Corporation dividend-yield-ttm | GATX Corporation Quote
NXP Semiconductors provides high-performance mixed signal and standard product solutions that leverage its RF, analog, power management, interface, security, as well as digital processing expertise.
NXPI has been driven by a strong demand environment across the end markets. NXPI continues to benefit from its strong position in secular growth markets including automotive, industrial & IoT, mobile, and communication infrastructure & others. Solid momentum across auto radar systems, auto domain and zonal processors, auto electrification systems, secure connected edge solutions, UWB secure access solutions and RF power for 5G infrastructure continue to remain key catalysts.
On Jan 30, 2023, NXP Semiconductors declared that its shareholders would receive a dividend of $1.014 per share on Apr 5, 2023. It has a dividend yield of 2.2%. Over the past 5 years, NXPI has increased its dividend five times, and its payout ratio presently stays at 24% of earnings. Check NXPI’s dividend history here.
NXP Semiconductors N.V. Dividend Yield (TTM)
NXP Semiconductors N.V. dividend-yield-ttm | NXP Semiconductors N.V. Quote
MSCI provides investment decision support tools, including indexes, portfolio construction and risk management products and services, Environmental, Social and Governance (ESG) research and ratings, and real estate research, reporting and benchmarking offerings.
MSCI’s prospects are benefiting from solid growth in recurring subscriptions. It is gaining strong demand for custom and factor index modules, recurring revenue business models, and the growing adoption of its ESG and Climate solutions in the investment process. Its expanding portfolio of real asset solutions is noteworthy.
Acquisitions have enhanced MSCI’s ability to provide climate-risk assessment and assist investors with climate-risk disclosure requirements. MSCI’s new portfolio footprinting tool has extended climate analysis to municipal bonds and securitized products. Moreover, strong traction from client segments like wealth management, banks and hedge funds are other positives. MSCI carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Jan 30, 2023, MSCI declared that its shareholders would receive a dividend of $1.38 per share on Feb 28, 2023. It has a dividend yield of 1%. Over the past 5 years, MSCI has increased its dividend six times, and its payout ratio presently stays at 45% of earnings. Check MSCI’s dividend history here.
MSCI Inc Dividend Yield (TTM)
MSCI Inc dividend-yield-ttm | MSCI Inc Quote
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