Wall Street has remained volatile since mid-June, with tech stocks suffering amid growing concerns about the sustainability of AI-focused stocks. Also, renewed geopolitical tensions have once again started dampening investors' confidence.
Amid the ongoing uncertainty, conservative investors seeking reliable income while preserving their capital may find dividend-paying stocks an attractive option. These stocks generate steady income through regular dividend distributions and can provide a cushion against market volatility.
Three such stocks are: CF Industries Holdings, Inc. CF, Levi Strauss & Co. LEVI and The PNC Financial Services Group, Inc. PNC.
Markets Turn Volatile
Geopolitical tensions escalated this week after President Donald Trump said on Wednesday that he is no longer interested in negotiations with Iran. Both the United States and Iran have since launched strikes, with investors now fearing that the Middle East crisis could escalate once again.
Oil prices, which had eased over the past few weeks after the two warring nations announced a ceasefire and reached a temporary memorandum of understanding in mid-June to end all hostilities. However, attacks and counterattacks over the past two days have renewed fears that tensions could escalate in the coming days. Oil prices have also surged substantially over the past two days.
Markets were already volatile over the past two weeks, triggered by a massive sell-off in AI-related tech stocks, as concerns have been growing over their profitability and sustainability. Also, higher inflation has already made the Federal Reserve consider an interest rate hike this year.
The ongoing geopolitical tensions could add more fuel to the fire and keep markets volatile for a longer period.
3 Stocks That Recently Announced Dividend Hikes
CF Industries Holdings
CF Industries Holdings, Inc. is one of the largest manufacturers and distributors of nitrogenous fertilizer and other nitrogen products globally. CF’s principal nitrogenous fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). CF Industries Holdings has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On July 8, CF Industries Holdings announced that its shareholders would receive a dividend of $0.60 a share on Aug. 31. CF has a dividend yield of 1.71%. Over the past five years, CF Industries Holdings has increased its dividend three times, and its payout ratio presently sits at 13% of earnings. Check CF Industries Holdings’ dividend history here.
Levi Strauss & Co.
Levi Strauss & Co. designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. LEVI’s products are sold through chain retailers, department stores, online sites, brand-dedicated retail stores and shop-in-shops. Levi Strauss & Co has a Zacks Rank #3.
On July 8, Levi Strauss & Co declared that its shareholders would receive a dividend of $0.16 a share on Aug. 5. LEVI has a dividend yield of 2.30%. Over the past five years, Levi Strauss & Co has increased its dividend six times, and its payout ratio presently sits at 40% of earnings. Check Levi Strauss & Co’s dividend history here.
The PNC Financial Services Group, Inc.
The PNC Financial Services Group, Inc. provides consumer and business banking services. The company's principal subsidiary is PNC Bank. PNC has a Zacks Rank #3.
On July 6, The PNC Financial Services Group announced that its shareholders would receive a dividend of $2 a share on Aug. 5. PNC has a dividend yield of 2.76%. Over the past five years, The PNC Financial Services Group has increased its dividend six times, and its payout ratio presently sits at 39% of earnings. Check The PNC Financial Services Group’s dividend history here.
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The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report
CF Industries Holdings, Inc. (CF): Free Stock Analysis Report
Levi Strauss & Co. (LEVI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).