3 Stocks to Keep an Eye on After Dividend Hike Announcement

The Wall Street rally appears to have paused after a month. Major indexes have retreated over the past few sessions after hitting record closing highs over the past month, as the post-election euphoria appears to be fizzling out.Also, geopolitical tensions coupled with concerns over the recent jump in inflation have somewhat dented investors’ confidence. Given this situation, cautious investors looking for a steady income and protecting their capital may look to hold or buy dividend-paying stocks.Three such stocks are Stryker Corporation SYK, Eli Lilly and Company LLY and The AES Corporation AES.Wall Street Rally HaltsThe Dow, the S&P 500 and the Nasdaq have all given up major gains over the past few days and retreated from their recent closing highs before rebounding slightly on Wednesday. Inflation rose once again in November. The consumer price index (CPI) increased 0.3% last month, recording its largest gain since April, after climbing 0.2% for four consecutive months. Year over year, CPI increased 2.7%. Core CPI, which excludes the volatile food and energy prices, increased 0.3% month over month in November and 3.3% from the year-ago levels.The jump in the November CPI reading could further dampen investors’ spirit as the Federal Reserve could slow the pace of its future rate cuts. The minutes of the Federal Reserve’s last policy meeting also revealed that the central bank plans more rate cuts but “gradually” given that the economy is still strong.Moreover, geopolitical tensions in the Middle East after Syrian president Baser Al-Assad was oustered from his country and the continuing conflict between Israel and Hamas have raised concerns over a slowing global economy.Also, despite optimism surrounding Donald Trump’s win in the U.S. Presidential election, investors are yet to get a more tangible cue on the incoming president’s tax policies.3 Stocks That Announced Dividend HikesGiven this situation, it would be safe and smart to invest in dividend-paying stocks. These companies have stable operations and consistently pay out dividends, staying profitable due to their reliable business models. In a volatile market, companies that offer high dividend payouts generally perform better than those that don't pay dividends.Stryker CorporationStryker Corporation is one of the world’s largest medical device companies operating in the global orthopedic market. SYK has three business segments: Orthopaedics, MedSurg, and Neurotechnology & Spine. Stryker Corporation has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.On Dec. 10, Stryker Corporation announced that its shareholders would receive a dividend of $0.84 a share on Jan. 31, 2025. SYK has a dividend yield of 0.84%. Over the past five years, Stryker Corporation has increased its dividend six times, and its payout ratio at present sits at 27% of earnings.Check Stryker Corporation’s dividend history here.Stryker Corporation Dividend Yield (TTM) Stryker Corporation dividend-yield-ttm | Stryker Corporation QuoteEli Lilly and CompanyEli Lilly and Company, one of the world’s largest pharmaceutical companies, boasts a diversified product profile, including a solid lineup of new successful drugs. LLY also has a dependable pipeline in areas like obesity, diabetes and Alzheimer’s. Eli Lilly and Company carries a Zacks Rank #3.On Dec. 9, Eli Lilly and Company declared that its shareholders would receive a dividend of $1.50 a share on March 10, 2025. LLY has a dividend yield of 0.65%. Over the past five years, EliLilly and Companyhas increased its dividend six times, and its payout ratio at present sits at 51% of earnings.Check Eli Lilly and Company’s dividend history here.Eli Lilly and Company Dividend Yield (TTM) Eli Lilly and Company dividend-yield-ttm | Eli Lilly and Company QuoteThe AES CorporationThe AES Corporation is a global power company. AES’s businesses are spread across four continents in 14 countries. The AES Corporation has four Strategic Business Units (SBUs) located in the United States and other regions across the globe. The AES Corporation holds a Zacks Rank #3.On Dec. 6, The AES Corporation announced that its shareholders would receive a dividend of $0.18 a share on Jan. 31, 2025. AES has a dividend yield of 5.07%. Over the past five years, The AES Corporation has increased its dividend six times, and its payout ratio at present sits at 30% of earnings.Check The AES Corporation’s dividend history here.The AES Corporation Dividend Yield (TTM) The AES Corporation dividend-yield-ttm | The AES Corporation QuoteZacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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 Eli Lilly and Company (LLY): Free Stock Analysis Report Stryker Corporation (SYK): Free Stock Analysis Report The AES Corporation (AES): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks