5 Quality Stocks Set to Reward Investors With Dividend Hikes

The labor market remained relatively steady, although there were hints of moderation. Weekly jobless claims increased to 197,000, while continuing claims edged lower to 1.782 million. Meanwhile, JOLTS data showed job openings slipping to 7.359 million, even as hiring improved. Personal income increased 0.2%. Despite these encouraging signs, investors still have several reasons to stay cautious.

The Federal Reserve has kept interest rates unchanged, but markets remain worried that stubborn inflation could force another rate hike later this year. Treasury yields have climbed to multi-year highs, increasing borrowing costs and putting pressure on high-growth stocks. Geopolitical tensions in the Middle East continue to create uncertainty in oil prices, although recent easing has offered some relief. At the same time, questions remain about whether AI leaders can generate enough returns to justify their rich valuations. Even so, strong corporate earnings and improving economic data have helped Wall Street recover, keeping hopes alive for a soft landing.

Amid such market conditions, cautious investors who wish to diversify their portfolios and pick dividend-paying stocks can keep a tab on some prominent names, such as DiamondRock Hospitality DRH, STERIS STE, Boise Cascade BCC, Quaker Houghton KWR and Cactus WHD. Companies that pay out dividends consistently indicate a healthy business model. Stocks that have raised dividends recently exhibit a sound financial structure and can counter market upheavals. Moreover, stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying entities in a highly volatile market.

DiamondRock Hospitality

DiamondRock Hospitality is a self-advised real estate company that owns, acquires and invests in upper upscale and upscale hotel properties located primarily in North America. This Zacks Rank #3 (Hold) company is based in Bethesda, MD. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

On July 30, DRH declared that its shareholders would receive a dividend of 11 cents a share on Oct. 14, 2026. DRH has a dividend yield of 2.7%.

Over the past five years, DRH has increased its dividend five times, and its payout ratio presently sits at 30% of earnings. Check DiamondRock Hospitality's dividend history here.

STERIS

STERIS is headquartered in Mentor, OH. This Zacks Rank #3 develops, manufactures and markets infection prevention, decontamination, microbial reduction, and surgical and gastrointestinal support products and services.

On July 30, STE declared that its shareholders would receive a dividend of 69 cents a share on Sept. 25, 2026. STE has a dividend yield of 1.1%.

In the past five years, STE has increased its dividend six times. Its payout ratio is currently 25% of earnings. Check STERIS’s dividend history here.

Boise Cascade

Boise Cascade is one of the largest wood products manufacturers and a leading United States wholesale distributor of building products. This Boise, ID-based company currently carries a Zacks Rank #2 (Buy).

On July 30, BCC declared that its shareholders would receive a dividend of 23 cents a share on Sept. 16, 2026. BCC has a dividend yield of 1%.

Over the past five years, BCC has increased its dividend nine times, and its payout ratio presently sits at 28% of earnings. Check Boise Cascade’s dividend history here.

Quaker Houghton

Quaker Houghton is headquartered in Conshohocken, PA. This Zacks Rank #2 company is a global developer, producer and marketer of industrial process fluids and related specialty chemicals.

On July 29, KWR declared that its shareholders would receive a dividend of 53 cents a share on Oct. 30, 2026. KWR has a dividend yield of 1.2%.

In the past five years, KWR has increased its dividend six times. Its payout ratio is currently 27% of earnings. Check Quaker Houghton’s dividend history here.

Cactus

Cactus is involved in manufacturing, designing and selling wellhead and pressure control equipment. This Houston, TX-based company currently carries a Zacks Rank #2.

On July 29, WHD announced that its shareholders would receive a dividend of 15 cents a share on Sept. 11, 2026. WHD has a dividend yield of 0.8%.

Over the past five years, WHD has increased its dividend six times. Its payout ratio now sits at 19% of earnings. Check Cactus' dividend history here.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research