Time to Buy These 4 Stocks With Risking Dividend Yields?
Wall Street is back in rally and ended September on a high after a rough start to what is historically considered the worst month for stocks. The Federal Reserve’s jumbo rate cut has also fueled the stock market rally.
However, concerns remain about the economy's health, which saw consumer confidence decline in September. Given this situation, cautious investors looking for a steady income and preservation of their capital may want to continue holding or buying dividend-paying stocks. Four such stocks are Honeywell International Inc. HON, Accenture plc ACN, City Holding Company CHCO and First United Corporation FUNC.
Wall Steet Rallies After Rate Cuts
Wall Street had a choppy start to September after fears were reignited that the economy was slowing and the Federal Reserve may have delayed too long to start its easing cycle. However, stocks rebounded after fresh economic data showed that inflation declined further in August.
Also, the Federal Reserve finally announced a half-percentage point rate cut in its September policy meeting. Stocks have since been on a rally. On Monday, the rally was fueled by comments from Federal Reserve Chairman Jerome Powell, who said that more rate cuts could be coming. On Monday, the S&P 500 closed at a new record high of 5,762.48 points.
September has historically been the worst month for Wall Street but stock markets defied the norm this year. The S&P 500, the Dow and the Nasdaq closed higher by 2%, 1.9% and 2.7%, respectively, for the month.
Sinking Consumer Confidence Could Make Stock Markets Volatile
Although stocks have been performing well, concerns remain about the economy’s health. Market participants were expecting a 25-basis-point rate cut by the Fed in September. Many have been viewing the Fed’s decision to cut rates by 50 basis points as an aggressive step to help the economy make a soft landing.
Concerns over a slowing economy saw consumer confidence drop to 98.7 in September from an upwardly revised 105.6 in August to its lowest level in three years.
Given this situation, it would thus be ideal to invest in dividend stocks. These companies, with their solid operations, consistently deliver dividends and stay profitable thanks to their dependable business models. In a market with high volatility, companies that provide substantial dividend payouts often perform better than those that do not offer dividends.
Dividend Paying Stocks Are a Safe Bet
Honeywell International Inc.
Honeywell International Inc. is a global diversified technology and manufacturing company, with a wide range of products and services. HON's diversified portfolio of solutions serves customers globally with aerospace products and services, energy-efficient products and solutions for businesses, and process technology, specialty chemicals, electronic and advanced materials for refining and petrochemicals. Honeywell International has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Sept. 27, Honeywell International announced that its shareholders would receive a dividend of $1.13 a share on Dec. 6, 2024. HON has a dividend yield of 2.08%. Over the past five years, Honeywell International has increased its dividend six times, and its payout ratio at present sits at 45% of earnings. Check Honeywell International’s dividend history here.
Honeywell International Inc. Dividend Yield (TTM)
Honeywell International Inc. dividend-yield-ttm | Honeywell International Inc. Quote
Accenture plc
Accenture plc’s years of investment in digital, cloud and security strategy have helped it evolve as a trusted and viable consulting services provider. ACN is currently one of the top consultancy firms in the world by revenues that increased 4% in fiscal 2023 with a contribution of 52% from consulting services. Accenture has a Zacks Rank #3.
On Sept. 26, Accenture declared that its shareholders would receive a dividend of $1.48 a share on Nov. 15, 2024. ACN has a dividend yield of 1.48%. Over the past five years, Accenture has increased its dividend six times, and its payout ratio at present sits at 43% of earnings. Check Accenture’s dividend history here.
Accenture PLC Dividend Yield (TTM)
Accenture PLC dividend-yield-ttm | Accenture PLC Quote
City Holding Company
City Holding Company is a multi-bank holding company that provides diversified financial products and services to consumers and local businesses. CHCO carries a Zacks Rank #2 (Buy).
On Sept. 25, City Holding Company announced that its shareholders would receive a dividend of $0.79 a share on Oct. 31, 2024. CHCO has a dividend yield of 2.45%. Over the past five years, City Holding Company has increased its dividend six times, and its payout ratio at present sits at 37% of earnings. Check City Holding Company’s dividend history here.
City Holding Company Dividend Yield (TTM)
City Holding Company dividend-yield-ttm | City Holding Company Quote
First United Corporation
First United Corporation is a one-bank holding company with two non-bank subsidiaries. FUNC carries a Zacks Rank #3.
On Sept. 25, First United Corporation declared that its shareholders would receive a dividend of $0.22 a share on Nov. 1, 2024. FUNC has a dividend yield of 2.69%. Over the past five years, First United Corporation has increased its dividend five times, and its payout ratio at present sits at 28% of earnings. Check First United Corporation’s dividend history here.
First United Corporation Dividend Yield (TTM)
First United Corporation dividend-yield-ttm | First United Corporation Quote
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Accenture PLC (ACN) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
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First United Corporation (FUNC) : Free Stock Analysis Report