5 Stocks to Watch on Dividend Hikes as Inflation Softens

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Among the three major U.S. indexes, the Nasdaq Composite and the Dow Jones Industrial Average, have lost 1.03% and 0.52%, respectively, over the year-to-date period, whereas the S&P 500 has gained a marginal 0.60%. Investors are still hesitant to make any bold moves due to President Donald Trump’s announcement of sweeping tariffs on all the trading partners of the United States. However, a truce between China and the United States, the world's top two economies, indicates that import duties may be significantly reduced if a deal is reached.

The consumer price index (CPI) rose 0.2% sequentially in April and 2.3% from the year-ago levels, the lowest since February 2021. Federal Reserve Chair Jerome Powell said that the Federal Reserve needs more clarity before considering further interest rate cuts. Analysts expect the Fed to wait until September at the earliest before making further interest rate cuts since inflation is cooling steadily and is in line with the central bank’s 2% target. Market participants fear that the possibility of a recession persists due to the ongoing trade conflicts, which could negatively impact inflation and key economic indicators.

Amid such volatile market conditions, investors who wish to diversify their portfolios can pick dividend-paying stocks. Some of the prominent names are Marriott International MAR, HNI HNI, Sun Life Financial SLF, ESAB Corporation ESAB and Victory Capital Holdings VCTR. Companies that pay out dividends indicate a consistently healthy business model. Stocks that have recently raised dividends exhibit a sound financial structure and can counter market upheavals. Stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.

Our Choices

Marriott International

Marriott International is a leading worldwide hospitality company engaged in the operation, franchising and licensing of hotel, residential, timeshare and other lodging properties worldwide. This Bethesda, MD-based company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

On May 9, MAR declared that its shareholders would receive a dividend of 67 cents a share on June 30, 2025. MAR has a dividend yield of 0.9%.

Over the past five years, MAR has increased its dividend five times, and its payout ratio presently sits at 26% of earnings. Check Marriott International’s dividend history here.

Marriott International, Inc. Dividend Yield (TTM)

Marriott International, Inc. Dividend Yield (TTM)
Marriott International, Inc. Dividend Yield (TTM)

Marriott International, Inc. dividend-yield-ttm | Marriott International, Inc. Quote