U.S. stocks have rebounded over the past month after a turbulent first few months of 2025, as sweeping tariffs announced by President Donald Trump and high inflation raised concerns about the economy’s health.
However, even the recent rebound hasn’t been smooth, as markets have repeatedly turned volatile due to multiple factors that continue to erode consumer sentiment. Investors still lack clarity over the impact of tariffs once they come into effect after negotiations and the Federal Reserve’s next move with its rate cut plans.
Given this uncertainty, cautious investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Three such stocks are The Toronto-Dominion Bank TD, Marriott International, Inc. MAR, Lennox International Inc. LII and Ralph Lauren Corporation RL.
Economic Uncertainty Continues
Trump imposed hefty tariffs in April on every trading partner of the United States, and especially targeted China, with a whopping 145% duty on its imports. In response, China fired back with its own 125% tariffs on U.S. imports.
However, both nations recently agreed to a trade truce, suspending tariffs for 90 days. While this pause has somewhat eased fears of an escalating trade war, investors remain unclear about how future trade deals with China and other countries will unfold and what impact they might have on the economy.
Also, investors have been on the edge due to the uncertainty over the timing of the next rate cut. Inflation has eased in recent months, with the Consumer Price Index (CPI) rising just 0.2% in April, after declining 0.1% in March for the first time since May 2020.
CPI rose 2.3% in April from the year-ago levels, marking the smallest annual gain since February 2021. The April data suggests that inflation is slowly moving closer to the Federal Reserve's 2% target. However, the Fed has adopted a cautious approach and opted to keep interest rates unchanged in its May meeting. Officials also said that any decision to cut rates will come only after they are certain that inflation is declining significantly.
4 Stocks That Recently Declared Dividend Hikes
Considering the current uncertainty, investing in dividend-paying stocks could be a smart move. Such companies tend to be more stable and reliable, often continuing to pay out dividends even amid economic fluctuations. Their ability to maintain profitability usually stems from solid business models and sound financial strategies, making them a safer option for investors seeking steady returns. In a fluctuating market, companies that pay high dividends often outperform those that do not.
The Toronto-Dominion Bank
The Toronto-Dominion Bank is a Canadian chartered bank that offers a wide range of business and consumer services. TD’s services include checking and savings accounts, credit cards, mortgage and student loans, trusts, wills, estate planning, investment management services and financial and advisory services. The Toronto-Dominion Bank has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On May 23, The Toronto-Dominion Bank announced that its shareholders would receive a dividend of $0.75 a share on July 31. TD has a dividend yield of 4.31%. Over the past five years, The Toronto-Dominion Bank has increased its dividend 12 times, and its payout ratio presently sits at 53% of earnings. Check The Toronto-Dominion Bank’s dividend history here.
Marriott International, Inc.
Marriott International, Inc. is a leading worldwide hospitality company focused on lodging management and franchising. As of March 31, 2025, MAR operated, franchised and acted as a licensor of hotels, timeshare properties and other lodging properties of 9,500 properties across 144 countries and territories under more than 30 brand names. Marriott International has a Zacks Rank #3 (Hold).
On May 23, Marriott International declared that its shareholders would receive a dividend of $0.67 a share on June 30. MAR has a dividend yield of 1.04%. Over the past five years, Marriott International has increased its dividend five times, and its payout ratio presently sits at 26% of earnings. Check The Marriott International’s dividend history here.
Lennox International Inc
Lennox International Inc. is a global leader in the heating, air conditioning and refrigeration markets. LII is a leading global provider of climate control solutions. Lennox International carries a Zacks Rank #3.
On May 22, Lennox International announced that its shareholders would receive a dividend of $1.30 a share on July 15. LII has a dividend yield of 0.81%. Over the past five years, Lennox International has increased its dividend five times, and its payout ratio presently sits at 20% of earnings. Check Lennox International’s dividend history here.
Ralph Lauren Corporation
Ralph Lauren Corporation is a major designer, marketer and distributor of premium lifestyle products in North America, Europe, Asia, and internationally. RL offers products in the apparel, footwear, accessories, home furnishings, and other licensed product categories.RL carries a Zacks Rank #3.
On May 22, Ralph Lauren Corporation declared that its shareholders would receive a dividend of $0.91 a share on July 11. RL has a dividend yield of 1.20%. Over the past five years, Ralph Lauren Corporation has increased its dividend three times, and its payout ratio presently sits at 27% of earnings. Check Ralph Lauren Corporation’s dividend history here.
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
