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Investor sentiment took a hit after the Consumer Price Index, the most accepted gauge for inflation, came in higher than expected for the month of January 2024. Due to an unexpected rise in inflation, the Federal Reserve’s rate cut is most likely to be delayed further.

The key indexes, the Dow, the S&P 500, and the tech-heavy Nasdaq, have returned 15.1%, 23%, and 34.2%, respectively, over the past year.

The Bureau of Labor Statistics reported on Feb. 14 that the headline inflation for the month of January rose 0.3% monthly and 3.1% on a year-over-year basis against the street expectation of 0.2% and 2.9%, respectively. Higher shelter prices accounted for much of the rise. Since the current inflation is higher than the Fed’s ambitious target of 2%, the expectation of an interest rate cut in March seems unlikely.

The Fed has already kept the interest rate at its highest level since 2001 in the range of 5.25-5.5%, with an intention to slow down the overall economy. By maintaining high interest rates, the Fed wants to cool off demand by making borrowing money more expensive. This would impact corporate performance and, thereby, stock prices. Although investors are expecting the central bank to be less hawkish this year, keeping in mind sticky inflation, the Fed will most probably keep the interest rate high for longer.

Prudent investors who wish to invest their money for regular income and capital preservation can buy dividend stocks. These companies, due to their well-established businesses, pay out regular dividends and remain profitable due to their proven business models. Companies that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.

On that note, let us look at companies like Genuine Parts (GPC - Free Report), Koppers (KOP - Free Report), Westinghouse Air Brake Technologies (WAB - Free Report), CSX (CSX - Free Report), and SherwinWilliams (SHW - Free Report) which have recently hiked their dividend payouts.

Genuine Parts 

This company is headquartered in Atlanta, GA. It is a Zacks Rank #3 (Hold) company that distributes automotive and industrial replacement parts and materials. On Feb. 15, GPC announced that its shareholders would receive a dividend of $1 a share on April 1, 2024. GPC has a dividend yield of 2.6%. Over the past five years, GPC has increased its dividend six times. Its payout ratio now sits at 42% of earnings.

Genuine Parts Company Dividend Yield (TTM)

Genuine Parts Company dividend-yield-ttm | Genuine Parts Company Quote

Koppers

This company is headquartered in Pittsburgh, PA. This Zacks Rank #3 (Hold) company is an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds.

On Feb. 14, KOP declared that its shareholders would receive a dividend of 7 cents a share on March 25, 2024. KOP has a dividend yield of 0.5%. In the past five years, KOP has increased its dividend three times. Its payout ratio at present sits at 5% of earnings.

Koppers Holdings Inc. Dividend Yield (TTM)

Koppers Holdings Inc. dividend-yield-ttm | Koppers Holdings Inc. Quote

Westinghouse Air Brake Technologies

This company is also headquartered in Pittsburgh, PA. This Zacks Rank #3 (Hold) company is a provider of locomotives, value-added, technology-based equipment, systems, and services to the freight rail and passenger transit industries across the globe.

On Feb. 14, WAB declared that its shareholders would receive a dividend of 20 cents a share on March 8, 2024. WAB has a dividend yield of 0.5%. Over the past five years, WAB has increased its dividend three times, and its payout ratio presently sits at 12% of earnings.

Westinghouse Air Brake Technologies Corporation Dividend Yield (TTM)

Westinghouse Air Brake Technologies Corporation dividend-yield-ttm | Westinghouse Air Brake Technologies Corporation Quote

CSX

This company is headquartered in Jacksonville, FL. This Zacks Rank #3 (Hold) company offers rail-based freight transportation services like traditional rail service, transport of intermodal containers, and trailers apart from rail-to-truck transfers.

On Feb. 14, CSX declared that its shareholders would receive a dividend of 12 cents a share on March 15, 2024. CSX has a dividend yield of 1.2%. In the past five years, CSX has increased its dividend six times. Its payout ratio at present sits at 24% of earnings.

CSX Corporation Dividend Yield (TTM)

CSX Corporation dividend-yield-ttm | CSX Corporation Quote

SherwinWilliams

This final company is headquartered in Cleveland, OH. This Zacks Rank #3 (Hold) company is involved with the manufacturing and sales of paints, coatings, and related products.

On Feb. 14, SHW declared that its shareholders would receive a dividend of 72 cents a share on March 8, 2024. SHW has a dividend yield of 0.8%. In the past five years, SHW has increased its dividend seven times. Its payout ratio at present sits at 23% of earnings.

The Sherwin-Williams Company Dividend Yield (TTM)

The Sherwin-Williams Company dividend-yield-ttm | The Sherwin-Williams Company Quote

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