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Volatility returned to Wall Street at the beginning of the year, with multiple factors denting investors’ sentiment. Rising inflation, resulting in a halt in rate cuts by the Federal Reserve, and growing fears of a trade war following President Donald Trump’s announcement of hefty tariffs on several countries have been rattling stocks.

This volatility could escalate in the coming days, as uncertainty over the economy’s health continues to grow. Given this situation, investors looking for steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Three such stocks to keep an eye on are Vermilion Energy Inc. (VET - Free Report), Chord Energy Corporation (CHRD - Free Report), and Viper Energy, Inc. (VNOM - Free Report).

Volatility Returns to Wall Street

An unexpected rise in inflation over the past three months has raised concerns of a slowing economy, with major indexes retreating from their earlier highs seen in 2024. The Federal Reserve issued an alert in late 2024 that there will be fewer rate cuts this year as inflation has shown signs of escalating.

The Fed left interest rates unchanged in January and has hinted at adopting a cautious approach until inflation shows signs of cooling. Market participants believe that the Federal Reserve wouldn’t go for a rate cut before the second half of the year. Moreover, it is unlikely that the Fed will go for more than one rate cut this year.

To make matters worse, Trump’s proposed tariffs have raised fears of a trade war. Trump has announced 25% tariffs on Canadian and Mexican imports before temporarily pausing them for the second time earlier this week. Both nations have also announced retaliatory tariffs.

Besides, Trump has already imposed 10% tariffs on Chinese goods, with Beijing having already retaliated. The ongoing tensions could keep markets volatile for a longer period.

3 Stocks That Recently Announced Dividend Hikes

Given the present circumstances, investing in stocks that pay out dividends could be a smart choice. Such companies usually remain stable, consistently distributing dividends while sustaining profitability through strong business strategies. In a fluctuating market, companies that provide significant dividend payments often outperform those that do not.

Vermilion Energy

Vermilion Energy Inc. is an international oil and gas producer with properties in Western Canada, Australia, France, and the Netherlands. Vermilion Energy has a Zacks Rank #3 (Hold) rating.

On March 6, Vermilion Energy announced that its shareholders would receive a dividend of $0.09 a share on April 15. The stock has a dividend yield of 4.41%. Over the past five years, Vermilion Energy has increased its dividend 9 times, and its payout ratio sits at 43% of earnings.

Chord Energy Corporation

Chord Energy Corporation is an independent exploration and production company with its long-lived assets in the Williston Basin. Chord Energy, formerly known as Oasis Petroleum Inc., is headquartered in Houston. Chord Energy has a Zacks Rank #3 (Hold) rating.

On March 6, Chord Energy Corporation declared that its shareholders would receive a dividend of $1.30 a share on March 26. The stock has a dividend yield of 4.93%. Over the past five years, Chord Energy Corporation has similarly increased its dividend 9 times, and its payout ratio sits at 30% of earnings.

Viper Energy

Viper Energy, Inc. is a subsidiary of independent oil & gas exploration and production company Diamondback Energy. Viper Energy has mineral interests in prolific oil-rich shale plays like the Eagle Ford and Permian Basin. Viper Energy carries a Zacks Rank #3 (Hold) rating.

On March 6, Viper Energy announced that its shareholders would receive a dividend of $0.65 a share on March 13. The stock has a dividend yield of 2.79%. Over the past five years, Viper Energy has increased its dividend 14 times, and its payout ratio sits at 59% of earnings.

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