5 Stocks With Recent Dividend Hike for a Stable Portfolio

U.S. stock markets are witnessing volatile trading since the beginning of August. Wall Street ended the first seven months of 2023 on an impressive note after a highly disappointing 2022. However, month to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have slid 1.2%, 2.6% and 4.4%, respectively.

Recent volatility arises primarily from three sources. First, on Jul 26, the Fed raised the benchmark lending rate by 25 basis points to the range of 5.25-5.5%. This marked the highest range of the Fed fund rate since March 2001. The central bank remains open to more rate hikes, depending on economic data.

Second, on Aug 1, Fitch Ratings downgraded the U.S long-term foreign currency issuer default rating to AA+ from AAA. This resulted in a spike in yields of U.S. sovereign bonds. Third, on Aug 8, Moody’s Investors Service cut the rating of 10 small and mid-sized U.S. banks by a single notch. Moreover, the rating agency put six big banks under review for a potential downgrade. Moody’s also changed its rating outlook to negative for 11 banks.

Stocks in Focus

At this stage, dividend-paying stocks should be in demand as investors try to safeguard their portfolios. We believe that one should consider stocks that have recently raised their dividend payments.

Five such companies are – Vistra Corp. VST, Hawkins Inc. HWKN, Canadian Natural Resources Ltd. CNQ, Vermilion Energy Inc. VET and Microchip Technology Inc. MCHP. Each of these stocks currently carries a Zacks Rank #3 (Hold). Vistra operates as an integrated retail electricity and power generation company. VST operates through six segments: Retail, Texas, East, West, Sunset, and Asset Closure. VST retails electricity and natural gas to residential, commercial, and industrial customers across 20 states in the United States and the District of Columbia.

On Aug 2, 2023, Vistra declared that its shareholders would receive a dividend of $0.206 per share on Sep 29, 2023. It has a dividend yield of 3%. Over the past five years, VST has increased its dividend 10 times, and its payout ratio presently stays at 41% of earnings. Check VST’s dividend history here.

Hawkins distributes, blends and manufactures bulk and specialty chemicals and other health and nutrition products for its customers in a wide variety of industries. Thousands of water treatment facilities, manufacturers, food and dairy producers, research labs and many other organizations depend on HWKN for the chemical products they need. These products range from potassium carbonate to chlorine to FCC grade citrates and phosphates.

On Aug 2, 2023, Hawkins declared that its shareholders would receive a dividend of $0.16 per share on Sep 1, 2023. It has a dividend yield of 1.3%. Over the past five years, HWKN has increased its dividend eight times, and its payout ratio presently stays at 20% of earnings. Check HWKN’s dividend history here.

Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. CNQ boasts of a diversified portfolio of crude oil (heavy as well as light), natural gas, bitumen and synthetic crude oil. CNQ reports its activities into two segments: Exploration & Production, and Oil Sands Mining and Upgrading.

On Aug 2, 2023, Canadian Natural Resources declared that its shareholders would receive a dividend of $0.6744 per share on Oct 5, 2023. It has a dividend yield of 4.5%. Over the past five years, CNQ has increased its dividend 17 times, and its payout ratio presently stays at 35% of earnings. Check CNQ’s dividend history here.

Vermilion Energy is engaged in the acquisition, exploration, development, and production of petroleum and natural gas in North America, Europe, and Australia.

On Aug 2, 2023, Vermilion Energy declared that its shareholders would receive a dividend of $0.0749 per share on Oct 16, 2023. It has a dividend yield of 1.9%. Over the past five years, VET has increased its dividend 12 times, and its payout ratio presently stays at 11% of earnings. Check VET’s dividend history here.

Microchip Technology is riding on consistent strength in its analog and microcontroller businesses. MCHP’s dominance in 8,16 and 32-bit microcontrollers is driving top-line growth. Strategic acquisitions like Microsemi and Atmel have expanded the product portfolio. MCHP is gaining from strong demand across industrial, automotive, aerospace and defense, data center, and communications infrastructure end markets. Collaboration with the likes of AWS is positive.

On Aug 3, 2023, Microchip Technology declared that its shareholders would receive a dividend of $0.41 per share on Sep 5, 2023. It has a dividend yield of 1.8%. Over the past five years, MCHP has increased its dividend 21 times, and its payout ratio presently stays at 26% of earnings. Check MCHP’s dividend history here.
Microchip Technology Incorporated (MCHP): Free Stock Analysis Report