Wall Street entered June with a mix of resilience and caution as investors are balancing between strong economic data, inflation concerns and high-stakes geopolitical drama in the Middle East. The S&P 500 and the Nasdaq repeatedly hit record highs, fueled by optimism around artificial intelligence and strong corporate earnings. Manufacturing activity expanded for the fifth straight month in May, with the ISM Manufacturing Purchasing Managers' Index (PMI) rising to 54, its highest level in four years. Construction spending also increased 0.4% in April, beating expectations. A PMI above 50 signifies economic expansion. Meanwhile, jobless claims remained relatively low at 215,000, suggesting the labor market is still holding up despite slower economic growth.
Sticky inflation remains the primary concern. With April PCE inflation rising 0.4%, market participants are watching to see if inflation can cool down without triggering a recession. The first-quarter GDP growth was revised down to 1.6%, indicating a slowing growth rate. Consumer sentiment also weakened, reflecting pressure from higher prices and geopolitical risks. As Iran threatened to halt peace talks and close the strategic Strait of Hormuz, crude oil inventories fell by 3.3 million barrels per day, and energy stocks jumped 1.8% amid supply fears.
Amid such market conditions, cautious investors who wish to diversify their portfolios and pick dividend-paying stocks can keep a tab on some prominent names like: UnitedHealth Group UNH, Donaldson DCI, Lowe's Companies LOW, ePlus PLUS and The Toronto Dominion Bank (TD). 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.
UnitedHealth Group
UnitedHealth Group provides a wide range of health care products and services, such as health maintenance organizations, point of service plans, preferred provider organizations, and managed fee-for-service programs. This Minnetonka, MN-based company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
On June 3, UNH declared that its shareholders would receive a dividend of $2.32 a share on June 23, 2026. UNH has a dividend yield of 2.3%.
Over the past five years, UNH has increased its dividend six times, and its payout ratio presently sits at 54% of earnings. Check UnitedHealth Group’s dividend history here.
UnitedHealth Group Incorporated Dividend Yield (TTM)
UnitedHealth Group Incorporated dividend-yield-ttm | UnitedHealth Group Incorporated Quote
Donaldson
Donaldson is headquartered in Bloomington, MN. This Zacks Rank #3 company is engaged in the manufacturing and selling of filtration systems and replacement parts across the world.
On May 29, DCI declared that its shareholders would receive a dividend of 32 cents a share on June 30, 2026. DCI has a dividend yield of 1.4%.
In the past five years, DCI has increased its dividend six times. Its payout ratio is currently 32% of earnings. Check Donaldson’s dividend history here.
Donaldson Company, Inc. Dividend Yield (TTM)
Donaldson Company, Inc. dividend-yield-ttm | Donaldson Company, Inc. Quote
Lowe's Companies
Lowe's Companies has evolved as one of the world’s leading home improvement retailers, offering services to homeowners, renters and commercial business customers. This Mooresville, NC-based company currently carries a Zacks Rank #3.
On May 29, LOW announced that its shareholders would receive a dividend of $1.25 a share on Aug. 5, 2026. LOW has a dividend yield of 2.3%.
Over the past five years, LOW has increased its dividend six times. Its payout ratio now sits at 39% of earnings. Check Lowe's Companies' dividend history here.
Lowe's Companies, Inc. Dividend Yield (TTM)
Lowe's Companies, Inc. dividend-yield-ttm | Lowe's Companies, Inc. Quote
ePlus
ePlus is a leading provider of technology solutions, enabling organizations to optimize their IT infrastructure and supply chain processes by delivering world-class IT products from top manufacturers, professional services, flexible lease financing, proprietary software, and patented business methods. The Zacks Rank #3 company operates from Herndon, VA.
On May 28, PLUS declared that its shareholders would receive a dividend of 27 cents a share on June 30, 2026. PLUS has a dividend yield of 1.2%.
Over the past five years, PIPR has increased its dividend two times, and its payout ratio presently sits at 22% of earnings. Check ePlus' dividend history here.
ePlus inc. Dividend Yield (TTM)
ePlus inc. dividend-yield-ttm | ePlus inc. Quote
Toronto Dominion Bank
Toronto Dominion Bank is headquartered in Toronto, Canada. This Zacks Rank #3 company is a chartered bank that offers a wide range of business and consumer services, which include checking and savings accounts, credit cards, mortgage and student loans, trusts, wills, estate planning, investment management services and financial and advisory services.
On May 28, TD declared that its shareholders would receive a dividend of 81 cents a share on June 31, 2026. TD has a dividend yield of 2.7%.
In the past five years, TD has increased its dividend 11 times. Its payout ratio is currently 45% of earnings. Check Toronto Dominion Bank’s dividend history here.
Toronto Dominion Bank (The) Dividend Yield (TTM)
Toronto Dominion Bank (The) dividend-yield-ttm | Toronto Dominion Bank (The) Quote
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
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Donaldson Company, Inc. (DCI): Free Stock Analysis Report
ePlus inc. (PLUS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).