4 Stocks Defying Geopolitical Headwinds With Recent Dividend Hikes

Amid continued market uncertainty, conservative investors looking for steady income and greater capital protection may want to consider dividend-paying stocks. These stocks can offer a regular stream of income through dividend payouts while also providing some stability during periods of market volatility.

Here are four dividend stocks worth considering: EnerSys ENS, H&R Block, Inc. HRB, Badger Meter, Inc. BMI and United Community Banks, Inc. UCB.

Middle East Crisis Rattles Stocks

Bond yields have been surging lately on fears that oil prices could rise further as the Middle East crisis deepened over the past few days. The 30-year Treasury yield hit its highest level in 19 years on Tuesday. U.S. crude futures rose 0.5% on the same day to settle at $84.94 a barrel.

Oil prices have now surged for the fifth straight day. Talks between the United States and Iran appear to have stalled after the ceasefire ended on Monday. President Donald Trump said in a Truth Social post on Tuesday that the United States is presently not planning any “talks or conversations” with Iran, dashing hopes of a peace deal anytime soon.

A surge in oil prices after war broke out between the United States and Iran saw inflation climbing in April and May. However, inflation fell in June and July as oil prices eased after the two warring nations signed a memorandum of understanding.

This saw the Federal Reserve hold interest rates steady at the end of its July FOMC meeting. The Federal Reserve is expected to hike interest rates by a quarter percentage point this year. The central bank had adopted a wait-and-watch stance but will be compelled to hike interest rates if inflation remains high.

4 Stocks That Recently Announced Dividend Hikes

EnerSys

EnerSys engages in manufacturing, marketing and distribution of various industrial batteries. Additionally, ENS develops battery chargers and accessories, power equipment and outdoor cabinet enclosures. Apart from this, it provides support services for clients.  EnerSys has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

On Aug. 12, EnerSys announced that its shareholders would receive a dividend of $0.29 a share on Oct. 2. ENS has a dividend yield of 0.52%. Over the past five years, EnerSys has increased its dividend four times, and its payout ratio presently sits at 9% of earnings. Check EnerSys’ dividend history here.

H&R Block

H&R Block, Inc. is a leading provider of tax preparation services. HRB provides assisted income tax return preparation, do-it-yourself tax solutions and other products and services associated with income tax return preparation in the United States, Canada and Australia. H&R Block has a Zacks Rank #2 (Buy).

On Aug. 12, H&R Block declared that its shareholders would receive a dividend of $0.46 a share on Oct. 6. HRB has a dividend yield of 3.35%. Over the past five years, H&R Block has increased its dividend five times, and its payout ratio presently sits at 35% of earnings. Check H&R Block’s dividend history here.

Badger Meter

Badger Meter, Inc. is a leading provider of water solutions, which include flow measurement, quality and other system parameters. BMI’s products measure water, oil, chemicals, and other fluids and are known for accuracy, long-lasting durability, and providing valuable and timely measurement data. Badger Meter has a Zacks Rank #3 (Hold).

On Aug. 14, Badger Meter announced that its shareholders would receive a dividend of $0.44 a share on Sept. 11. BMI has a dividend yield of 1.24%. Over the past five years, Badger Meter has increased its dividend six times, and its payout ratio presently sits at 37% of earnings. Check Badger Meter’s dividend history here.

United Community Banks

United Community Banks, Inc. conducts its operations through a community-focused operating model of separate community banks.  The community banks offer a range of retail and corporate banking services, including checking, savings and time deposit accounts, secured and unsecured loans, wire transfers, brokerage services and other financial services. Currently, UCB has a Zacks Rank #3.

On Aug. 13, United Community Banks declared that its shareholders would receive a dividend of $0.26 a share on Oct. 5. UCB has a dividend yield of 2.73%. Over the past five years, United Community Bank has increased its dividend seven times, and its payout ratio presently sits at 35% of earnings. Check United Community Bank’s dividend history here.

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This article originally published on Zacks Investment Research (zacks.com).

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