4 Stocks to Watch That Recently Declared Dividend Hikes Amid Volatility
Economic data released this week doesn't paint a rosy picture, raising concerns over the economy slipping into a recession in the coming months. Although President Donald Trump temporarily paused reciprocal tariffs last month, which helped markets rebound from their earlier lows, Wall Street remains volatile.
Given this uncertainty, cautious investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Three such stocks are Atkore Inc. ATKR, Enact Holdings, Inc. ACT, Pool Corporation POOL and American Water Works Company, Inc. AWK.
The Commerce Department said earlier this week that the U.S. economy contracted in the first quarter of 2025. Gross domestic product (GDP) fell 0.3% in the first three months of the year, recording the first quarter of negative growth since the first quarter of 2022, and missing analysts' expectations of 0.4% growth.
This came as fears grew that Trump's tariffs could weigh on the economy's health. Trump temporarily paused tariffs for 90 days, which saw a sharp rise in imports in the final month of the first quarter as consumers bought imported goods at a higher rate. Imports jumped 41.3% for the quarter, while exports grew just 1.8%.
Consumer spending also slowed as people saved more, anticipating tougher days ahead. Besides, there was also a significant decline in federal expenditures, which played a major role in the sluggish GDP figures.
Investors are worried that the economy could shrink further once the tariffs go into effect. Consumer confidence fell 7.9 points to 86 in April to hit a five-year low. Needless to say, investors aren't confident about the economy and with the picture on trade negotiations still unclear, markets could remain volatile for a longer period.
Given the uncertainty, it would be a wise decision to invest in stocks that pay dividends. These companies usually remain stable and consistently pay out dividends while sustaining profitability through strong business strategies. In a fluctuating market, companies that pay high dividends often outperform those that do not.
Atkore Inc. manufactures and distributes electrical raceway products. It offers steel tubes and pipes, electrical conduit, armored wire and cable, cable trays, metal framing systems and building components. Atkore has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
On April 30, Atkore announced that its shareholders would receive a dividend of $0.33 a share on May 28. ATKR has a dividend yield of 2%. Over the past five years, Atkore has increased its dividend once, and its payout ratio presently sits at 12% of earnings. Check Atkore's dividend history here.
Enact Holdings, Inc. operates principally through its wholly owned subsidiary Genworth Mortgage Insurance Corporation, which provides U.S. private mortgage insurance. Enact Holdings has a Zacks Rank #3.
On April 30, Enact Holdings declared that its shareholders would receive a dividend of $0.21 a share on June 11. ACT has a dividend yield of 2.07%. Over the past five years, Enact Holdings has increased its dividend six times, and its payout ratio presently sits at 16% of earnings. Check Enact Holdings' dividend history here.
Pool Corporation is the world's largest wholesale distributor of swimming pool supplies, equipment and related products. In addition, POOL is a leading regional wholesale distributor of irrigation and landscape products. Pool Corporation carries a Zacks Rank #3.
On April 30, Pool Corporation announced that its shareholders would receive a dividend of $1.25 a share on May 29. POOL has a dividend yield of 1.64%. Over the past five years, Pool Corporation has increased its dividend six times, and its payout ratio presently sits at 46% of earnings. Check Pool Corporation's dividend history here.
American Water Works Company, Inc. provides essential water services to more than 14 million customers in 24 states and has an employee strength of 6,700. AWK also acquires small water service providers to expand its customer base. American Water Works carries a Zacks Rank #2 (Buy).
On April 30, American Water Works declared that its shareholders would receive a dividend of $0.83 a share on June 3. AWK has a dividend yield of 2.08%. Over the past five years, American Water Works has increased its dividend six times, and its payout ratio presently sits at 57% of earnings. Check American Water Works' dividend history here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pool Corporation (POOL) : Free Stock Analysis Report
American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
Enact Holdings, Inc. (ACT) : Free Stock Analysis Report
Atkore Inc. (ATKR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Appeals court lets Trump administration keep collecting tariffs while challenges continue
WASHINGTON (AP) — A federal appeals court agreed Tuesday to let the government keep collecting President Donald Trump's sweeping import taxes while challenges to his signature trade policy continue on appeal. The decision by the U.S. Court of Appeals for the Federal Circuit extends a similar ruling it made after another federal court struck down the tariffs May 28, saying Trump had overstepped his authority. Noting that the challenges to Trump's tariffs raise "issues of exceptional importance,'' the appeals court said it would expedite the case and hear arguments July 31. The case involves 10% tariffs the president imposed on almost every country in April and bigger ones he imposed and then suspended on countries with which the United States runs trade deficits. It also involves tariffs Trump plastered on imports from China, Canada and Mexico to pressure them to do more to stop the illegal flow of immigrants and synthetic opioids across the U.S. border. In declaring the tariffs, Trump had invoked emergency powers under a 1977 law. But a three-judge panel of the U.S. Court of International Trade ruled he had exceeded his power. The tariffs upended global trade, paralyzed businesses and spooked financial markets. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Oil prices down, markets assess US-China trade talks outcome
By Katya Golubkova TOKYO (Reuters) -Oil prices fell in early trade on Wednesday as markets were assessing the outcome of U.S.-China trade talks, yet to be reviewed by President Donald Trump, with weak oil demand from China and OPEC+ production increases weighing on the market. Brent crude futures lost 24 cents, or 0.36%, to trade at $66.63 a barrel, while U.S. West Texas Intermediate crude fell 21 cents, or 0.32%, to $64.77 at 0119 GMT. U.S. and Chinese officials agreed on a framework to put their trade truce back on track and resolve China's export restrictions on rare earth minerals and magnets, U.S. Commerce Secretary Howard Lutnick said on Tuesday at the conclusion of two days of intense negotiations in London. Trump will be briefed on the outcome before approving it, Lutnick added. "In terms of what it means for crude oil, I think it removes some downside risks, particularly to the Chinese economy and steadies the ship for the U.S. economy - both of which should be supportive for crude oil demand and the price," said Tony Sycamore, a market analyst for IG. Oil import data from China earlier this week and ongoing production increases from OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, were adding to the downside. OPEC+ plans to increase oil production by 411,000 barrels per day for July as it looks to unwind production cuts for a fourth straight month. Meanwhile, China's customs data showed this week the country, the world's biggest oil importer, brought in 46.60 million tonnes of crude oil in May, down 3% from the previous month, with imports of oil products falling by 12.9%. Later on Wednesday, markets will be focusing on the weekly U.S. oil inventories report from the Energy Information Administration, the statistical arm of the U.S. Department of Energy. Analysts polled by Reuters expect U.S. crude oil stockpiles fell by 2 million barrels in the week to June 6, while distillate and gasoline inventories likely rose. Their estimates are for a bigger decline in crude stocks than figures from American Petroleum Institute showed. The API reported on Tuesday that crude stocks fell by 370,000 barrels last week, sources said on condition of anonymity. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
World Bank: Trump's Trade War Could Destroy the Global Economy
Trump's trade war won't just cripple domestic markets—it will slow global gross domestic product growth to its lowest point in 17 years. The World Bank's Global Economic Prospects report found that 'international discord' surrounding trade has 'upended many of the policy certainties that helped shrink extreme poverty and expand prosperity after the end of World War II.' The report did not name President Trump explicitly, but made it clear that his unprecedented tariffs—a 10 percent tax on imports from the entire world—were the direct cause of the drop in global and domestic economic growth. 'The rise in trade barriers, heightened uncertainty, and the spike in financial market volatility are set to weigh on private consumption, international trade, and investment,' the report stated. 'As a result, U.S. growth is expected to decelerate sharply in 2025, to 1.4 percent.' Additionally, global output is expected to slip by 0.5 percent. The report's future outlook is also not encouraging. 'In 2026-27, a tepid recovery is expected, leaving global output materially below January projections, the report said. 'The outlook largely hinges on the evolution of trade policy globally. Growth could turn out to be lower if trade restrictions escalate or if policy uncertainty persists, which could also result in a build-up of financial stress.… On the upside, uncertainty and trade barriers could diminish if major economies reach lasting agreements that address trade tensions.' It's clear that these hits to GDP will impede the growth of the domestic and the international working class, as Trump struggles to make a single trade deal while kneecapping America's diplomatic legitimacy in the process. 'The world economy today is once more running into turbulence,' World Bank chief economist Indermit Gill wrote. 'Without a swift course correction, the harm to living standards could be deep.' President Trump has yet to comment on the World Bank's report.
