5 Stocks to Watch on Dividend Hikes as We Step Into 2023

The stock market continues to remains volatile at the beginning of 2023.  The S&P 500, the Dow and the Nasdaq have yielded negative returns of 17.95%, 8.19% and 30.65%, respectively, over the past year period. The bearish sentiment dominates the stock markets and the economy is expected to run into recession.

Inflation in the United States continues to remain the biggest challenge for the economy. The Fed hinted that it would slow down the pace of the interest rate rise with more evidence of easing inflation. However, it continues to support increasing interest rates in 2023.  The consumer price index (CPI) for November 2022 came in at 7.1% after record highs of 8.2% in September and 8.3% in August. Yet, the numbers are far from the Federal Reserve’s ambitious target of 2% for a strong economy.

The November Job Opening and Labor Turnover report shows signs of continued strength in the labor market irrespective of the Institute for Supply Management (ISM) data, which indicates a contraction in the manufacturing index. This signals that the increasing interest rate is slowing down the economy, which could lead to a recession.

The global economy shows signs of slowing down due to a high inflation situation in many countries and the energy crisis due to geopolitical tensions. High energy costs due to the ongoing war in Ukraine have aggravated one of the worst energy crises in recent decades, causing a global supply-chain disturbance. China’s widespread COVID-control policy has taken a toll on its growth.

Thus, investors seeking regular income in such an unstable situation may invest in matured businesses with regular dividend payout. These dividend stocks have shown profitability due to their proven business model, which helps them stay afloat during adverse economic conditions.

Investors can expect a regular flow of income along with the preservation of capital against unexpected price changes. It is often seen that a company, which tends to reward its investors with a high dividend payout, comparatively outperforms non-dividend-paying stocks during market volatility.

On that note, let us look at companies like

CalMaine Foods

CALM

,


Camden National

CAC


,

Sandstorm Gold

SAND


,

Heico

HEI


and

The Mosaic Company

MOS


that have lately hiked their dividend payments.


CalMaine Foods

is a Jackson, MS-based company. This Zacks Rank #1 (Strong Buy) company is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs.

You can see


the complete list of today’s Zacks #1 Rank stocks here


.

On Dec 28, 2022, CALM declared that its shareholders would receive a dividend of $1.35 a share on Feb 9, 2023. CALM has a dividend yield of 6.15%.

Over the past five years, CALM has increased its dividend seven times and its payout ratio at present sits at 53% of earnings.

Check Farmers CalMaine Foods’ dividend history here

.


Camden National

is a Camden, ME-based company. This Zacks Rank #2 (Buy) company is a multi-bank financial institution that provides various commercial and consumer banking products and services to consumer, institutional, municipal, non-profit, and commercial customers

On Dec 12, CAC declared that its shareholders would receive a dividend of 42 cents a share on Jan 31, 2023. CAC has a dividend yield of 3.82%.

Over the past five years, CAC has increased its dividend six times and its payout ratio presently sits at 38% of earnings.

Check Camden National’s dividend history here

.

Camden National Corporation Dividend Yield (TTM)


Camden National Corporation Dividend Yield (TTM)


Camden National Corporation dividend-yield-ttm

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Camden National Corporation Quote


Sandstorm Gold

is a Vancouver, Canada-based company. This Zacks Rank #3 (Hold) company is a gold streaming company engaged in providing upfront financing for gold mining companies.

On Dec 20, SAND declared that its shareholders would receive a dividend of 2 cents a share on Jan 27, 2023. SAND has a dividend yield of 1.07%.

Over the past five years, SAND has increased its dividend two times and its payout ratio presently sits at 31% of earnings.

Check Sandstorm Gold’s dividend history here

.


Heico

is a Hollywood, Fl-based company. This Zacks Rank #3 company designs, manufactures, and sells aerospace, defense, and electronic-related products and services.

On Dec 19, HEI declared that its shareholders would receive a dividend of 10 cents a share on Jan 23, 2023. HEI has a dividend yield of 0.12%.

In the past five-year period, HEI has increased its dividend five times. Its payout ratio at present sits at 7% of earnings.

Check Heico’s dividend history

.


The Mosaic Company

is a Tampa, Fl-based company. This Zacks Rank #3 company is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry.

On Dec 16, MOS announced that its shareholders would receive a dividend of 20 cents a share on Mar 16, 2023. MOS has a dividend yield of 1.41%.

Over the past five years, MOS has increased its dividend five times. Its payout ratio now sits at 5% of earnings.

Check The Mosaic Company’s dividend history here

.


Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.


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