5 Stocks Worth Watching on Their Recent Dividend Hikes

Market Overview - The U.S. market has shown volatility, with returns of 19.2% for the Nasdaq Composite, 15.8% for the S&P 500, and 13.7% for the Dow Jones Industrial Average over the past year [1] - Concerns are rising regarding the moderating pace of the economy, influenced by a cooling labor market and high valuations in the technology sector [1] Federal Reserve Actions - The Federal Reserve cut its key interest rate by a quarter percentage point in December to support the job market and stimulate growth, with inflation trending near the 2% target [2] - The Fed has reduced borrowing costs three times this year, bringing the overnight borrowing rate to a range of 3.50-3.75% [2] Labor Market Conditions - The job market is showing signs of cooling, with softer hiring, rising unemployment at 4.6%, and a narrowing gap in job openings [3] - Nonfarm payrolls increased by 64,000 jobs in November after a decline of 105,000 jobs in October, the largest drop since December 2020 [3] Investment Opportunities - Investors looking to diversify can consider dividend-paying stocks, which indicate a healthy business model and tend to outperform non-dividend-paying stocks in volatile markets [4] - Notable dividend-paying companies include: - Pentair (PNR): Declared a dividend of 27 cents per share with a yield of 1% and a payout ratio of 21% [5][6] - nVent Electric (NVT): Declared a dividend of 21 cents per share with a yield of 0.8% and a payout ratio of 26% [7][8] - CenterPoint Energy (CNP): Declared a dividend of 23 cents per share with a yield of 2.3% and a payout ratio of 51% [10][11][12] - Marriott Vacations Worldwide (VAC): Declared a dividend of 80 cents per share with a yield of 5.5% and a payout ratio of 44% [10][13][14] - PG&E (PCG): Declared a dividend of 5 cents per share with a yield of 0.7% and a payout ratio of 7% [15]