Image: Bigstock

Economic data released this past week didn't paint a rosy picture, raising concerns over the economy slipping into a recession in the coming months. Although President Donald Trump temporarily paused reciprocal tariffs last month, which helped markets rebound from their earlier lows, Wall Street remains volatile.

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. Four such stocks are Atkore Inc. (ATKR - Free Report), Enact Holdings, Inc. (ACT - Free Report), Pool Corporation (POOL - Free Report), and American Water Works Company, Inc. (AWK - Free Report).

U.S. Economy Shrinks, Consumer Confidence Low

The Commerce Department said earlier this week that the U.S. economy contracted in the first quarter of 2025. Gross domestic product (GDP) fell 0.3% in the first three months of the year, recording the first quarter of negative growth since the first quarter of 2022, and missing analysts’ expectations of 0.4% growth.

This came as fears grew that Trump’s tariffs could weigh on the economy’s health. Trump temporarily paused tariffs for 90 days, which saw a sharp rise in imports in the final month of the first quarter as consumers bought imported goods at a higher rate. Imports jumped 41.3% for the quarter, while exports grew just 1.8%.

Consumer spending also slowed as people saved more, anticipating tougher days ahead. Besides, there was also a significant decline in federal expenditures, which played a major role in the sluggish GDP figures.

Investors are worried that the economy could shrink further once the tariffs go into effect. Consumer confidence fell 7.9 points to 86 in April to hit a five-year low. Needless to say, investors aren’t confident about the economy and with the picture on trade negotiations still unclear, markets could remain volatile for a longer period.

4 Stocks That Recently Declared Dividend Hikes

Given the uncertainty, it could be a wise decision to invest in stocks that pay dividends. These companies usually remain stable and consistently pay out dividends while sustaining profitability through strong business strategies. In a fluctuating market, companies that pay high dividends often outperform those that do not.

Atkore Inc.

Atkore Inc. manufactures and distributes electrical raceway products. It offers steel tubes and pipes, electrical conduit, armored wire and cable, cable trays, metal framing systems, and building components. Atkore has a Zacks Rank #3 (Hold) rating.

On April 30, Atkore announced that its shareholders would receive a dividend of $0.33 a share on May 28. The company has a dividend yield of 2%. Over the past five years, Atkore has increased its dividend once, and its payout ratio presently sits at 12% of earnings.

Enact Holdings

Enact Holdings, Inc. operates principally through its wholly owned subsidiary Genworth Mortgage Insurance Corporation, which provides U.S. private mortgage insurance. Enact Holdings has a Zacks Rank #3 (Hold) rating.

On April 30, Enact Holdings declared that its shareholders would receive a dividend of $0.21 a share on June 11. The company has a dividend yield of 2.07%. Over the past five years, Enact Holdings has increased its dividend six times, and its payout ratio presently sits at 16% of earnings.

Pool Corporation

Pool Corporation is the world's largest wholesale distributor of swimming pool supplies, equipment and related products. In addition, the company is a leading regional wholesale distributor of irrigation and landscape products. Pool Corporation carries a Zacks Rank #3 (Hold) rating.

On April 30, Pool Corporation announced that its shareholders would receive a dividend of $1.25 a share on May 29. The company has a dividend yield of 1.64%. Over the past five years, Pool Corporation has increased its dividend six times, and its payout ratio presently sits at 46% of earnings.

American Water Works Company

American Water Works Company, Inc. provides essential water services to more than 14 million customers in 24 states, and it has an employee strength of 6,700. The company also acquires small water service providers to expand its customer base. American Water Works carries a Zacks Rank #2 (Buy) rating.

On April 30, American Water Works declared that its shareholders would receive a dividend of $0.83 a share on June 3. The company has a dividend yield of 2.08%. Over the past five years, American Water Works has increased its dividend six times, and its payout ratio presently sits at 57% of earnings.

More By This Author: