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Volatility has returned to Wall Street this year, with investors’ confidence getting dented by concerns over the economy’s future. President Donald Trump’s return to the White House lifted investors’ sentiment for a while, but the euphoria has faded as fears of a trade war have escalated over the past week.
Given this situation, cautious investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Four such stocks are Hanmi Financial Corporation HAFC, Hancock Whitney Corporation HWC, CMS Energy Corporation CMS and FirstService Corporation FSV.
Multiple Factors Denting Investors’ Sentiment
Earlier this week, Trump announced 25% tariffs on Canadian and Mexican imports and 10% on Chinese goods. Stocks immediately took a hit on fears of an impending trade war as both Canada and Mexico announced retaliatory tariffs.
The tariffs have since been halted for 30 days following negotiations, which helped the markets rebound. However, the fears are far from over, and investors are now waiting to see Trump’s next step after the one-month hold is over.
Also, inflation rose in the final months of 2024, and the Federal Reserve, which already indicated a cautious approach with its easing policy, kept interest rates unaltered in its January FOMC meeting after cutting rates by 100 basis points on three consecutive occasions since September.
Investors are now worried that if inflation doesn’t slow, the Fed will hold its benchmark policy rate at its current range of 4.25-4.5% for a longer period. Markets are now pricing in an 85.5% chance of the Federal Reserve keeping interest rates unchanged in its March policy meeting. Higher borrowing rates could keep markets volatile for a longer period.
4 Stocks That Recently Announced Dividend Hikes
Considering the current situation, investing in dividend-paying stocks may be a wise decision. These companies typically maintain stability, regularly paying dividends while remaining profitable through sound business practices. In a volatile market, businesses that offer substantial dividend payouts tend to perform better than those that do not.
Hanmi Financial Corporation
Hanmi Financial Corporation is the holding company for Hanmi Bank, one of the leading banks providing services to the multi-ethnic communities of Southern California with full-service offices. HAFC is a business bank conducting a general community banking business, with its primary market encompassing multi-ethnic small business customers. Hanmi Financial Corporation presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
On Feb. 6, Hanmi Financial Corporation announced that its shareholders would receive a dividend of $0.27 a share on Feb. 26. HAFC has a dividend yield of 4.05%. Over the past five years, Hanmi Financial Corporation has increased its dividend seven times, and its payout ratio at present sits at 49% of earnings.Check Hanmi Financial Corporation’s dividend history here.