5 Dividend Stocks to Watch as Markets Swing on Inflation Fears

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5 Dividend Stocks to Watch as Markets Swing on Inflation Fears

U.S. markets were volatile, as geopolitical tensions and oil price swings weighed on sentiment, while strong earnings and economic data provided support. Major indexes fluctuated as investors reacted to tensions in the Middle East, particularly around the Strait of Hormuz, which drove sharp swings in crude oil prices. Sentiment was further pressured by uncertainty surrounding stalled diplomatic efforts.

However, the fundamentals of the U.S. economy remained solid, with consumer confidence at 92.8 in April, Q1 GDP growth at 2%, and manufacturing activity, as reported by the Institute for Supply Management, unchanged at 52.7 in April, indicating continued expansion. Despite this resilience, inflation data showed mixed signals, with headline PCE rising 0.7% in March while core PCE moderated to 0.3%. Meanwhile, a divided Federal Reserve stance and elevated energy costs kept uncertainty alive. Overall, the U.S. economy appears stable in the near term, supported by consumer strength and corporate performance, though geopolitical risks and inflation remain key variables for market direction.

Cautious investors can diversify their portfolios and pick dividend-paying stocks. Some of the prominent names are: FactSet Research Systems FDS, Cabot CBT, Diamondback Energy FANGPiper Sandler Companies PIPR and Sturm, Ruger & Company RGR. Companies that pay out dividends consistently indicate a healthy business model. Stocks that have raised dividends recently exhibit a sound financial structure and can counter market upheavals. Moreover, stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying entities in a highly volatile market.

FactSet Research Systems

FactSet Research Systems is a leading provider of integrated financial information, analytical applications and industry-leading service for the global investment community. This Norwalk, CT-based company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

On May 5, FDS declared that its shareholders would receive a dividend of $1.16 a share on June 18, 2026. FDS has a dividend yield of 2%.

Over the past five years, FDS has increased its dividend six times, and its payout ratio presently sits at 25% of earnings. Check FactSet Research Systems’ dividend history here.

FactSet Research Systems Inc. Dividend Yield (TTM)

FactSet Research Systems Inc. Dividend Yield (TTM)

FactSet Research Systems Inc. dividend-yield-ttm | FactSet Research Systems Inc. Quote

Cabot

Cabot is headquartered in Boston, MA. This Zacks Rank #3 (Hold) company is a leading global specialty chemicals and performance materials.

On May 4, CBT declared that its shareholders would receive a dividend of 47 cents a share on June 12, 2026. CBT has a dividend yield of 2.4%.

In the past five years, CBT has increased its dividend five times. Its payout ratio is currently 26% of earnings. Check Cabot’s dividend history here.

Cabot Corporation Dividend Yield (TTM)

Cabot Corporation Dividend Yield (TTM)

Cabot Corporation dividend-yield-ttm | Cabot Corporation Quote

Diamondback Energy

Diamondback Energy is an independent oil and gas exploration and production company with its primary focus on the Permian Basin. This Midland, TX-based company currently carries a Zacks Rank #1 (Strong Buy).

On May 4, FANG announced that its shareholders would receive a dividend of $1.10 a share on May 21, 2026. FANG has a dividend yield of 2%.

Over the past five years, FANG has increased its dividend 11 times. Its payout ratio now sits at 33% of earnings. Check Diamondback Energy's dividend history here.

Diamondback Energy, Inc. Dividend Yield (TTM)

Diamondback Energy, Inc. Dividend Yield (TTM)

Diamondback Energy, Inc. dividend-yield-ttm | Diamondback Energy, Inc. Quote

Piper Sandler Companies

Piper Sandler Companies is a focused securities firm dedicated to delivering superior financial advice, investment products and transaction execution within selected sectors of the financial services marketplace. The Zacks Rank #3 company operates from Minneapolis, MN.

On May 1, PIPR declared that its shareholders would receive a dividend of 20 cents a share on June 12, 2026. PIPR has a dividend yield of 0.9%.

Over the past five years, PIPR has increased its dividend 10 times, and its payout ratio presently sits at 16% of earnings. Check Piper Sandler Companies' dividend history here.

Piper Sandler Companies Dividend Yield (TTM)

Piper Sandler Companies Dividend Yield (TTM)

Piper Sandler Companies dividend-yield-ttm | Piper Sandler Companies Quote

Sturm, Ruger & Company

Sturm, Ruger & Company is headquartered in Southport, CT. This Zacks Rank #3 company is one of the nation's leading manufacturers of rugged, reliable firearms for the commercial sporting market.

On April 30, RGR declared that its shareholders would receive a dividend of 11 cents a share on May 29, 2026. RGR has a dividend yield of 0.8%.

In the past five years, RGR has increased its dividend 10 times. Its payout ratio is currently 13% of earnings. Check Sturm, Ruger & Company’s dividend history here.

Sturm, Ruger & Company, Inc. Dividend Yield (TTM)

Sturm, Ruger & Company, Inc. Dividend Yield (TTM)

Sturm, Ruger & Company, Inc. dividend-yield-ttm | Sturm, Ruger & Company, Inc. Quote

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FactSet Research Systems Inc. (FDS): Free Stock Analysis Report
 
Sturm, Ruger & Company, Inc. (RGR): Free Stock Analysis Report
 
Cabot Corporation (CBT): Free Stock Analysis Report
 
Diamondback Energy, Inc. (FANG): Free Stock Analysis Report
 
Piper Sandler Companies (PIPR): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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