The Zacks Analyst Blog Radian Group, Urban Edge Properties and Middlefield Banc

Core Insights - The article discusses the current volatility in the stock market due to rising inflation, uncertainty regarding Federal Reserve rate cuts, and trade war fears, suggesting that dividend-paying stocks may be a safer investment option during this period [2][3][4][5][6][8]. Group 1: Market Conditions - Wall Street has experienced volatility in 2025, influenced by unexpected inflation surges, uncertainty over Federal Reserve rate cuts, and trade war concerns stemming from new tariffs imposed by President Trump [2][3]. - The consumer price index (CPI) rose by 0.5% month-over-month in January 2025, marking the highest increase since August 2023 and exceeding economists' expectations of a 0.3% rise [4]. - Year-over-year, the CPI increased by 3% in January 2025, the largest gain since June 2024, indicating a resurgence in inflation after a decline in 2024 [4][5]. Group 2: Federal Reserve and Rate Cuts - The Federal Reserve has indicated fewer rate cuts for 2025, maintaining its benchmark policy rate in the range of 4.25-4.5% during its January meeting [6][7]. - Experts now believe that only one 25 basis point rate cut may occur in 2025 unless inflation shows significant signs of decline [7]. Group 3: Trade War Concerns - Trade war fears are exacerbated by the imposition of tariffs, including a 10% tariff on Chinese goods and potential tariffs on Canadian and Mexican imports, which could further increase inflation [8]. - The uncertainty surrounding these tariffs is expected to keep markets volatile for an extended period [8]. Group 4: Dividend-Paying Stocks - In light of current market conditions, investing in dividend-paying stocks is recommended as they tend to provide stability and consistent income [3][9]. - Radian Group Inc. announced a dividend of $0.26 per share with a yield of 3.01$0.19 per share with a yield of 3.28%, having increased its dividend four times in the last five years [12]. - Middlefield Banc Corp. announced a dividend of $0.21 per share with a yield of 3.10%, also increasing its dividend five times over the past five years [14].