If you're on the hunt for more dividend stocks but aren't quite sure where to look, you've come to the right place. The stock market has been rebounding, making deals harder to find. But today, I'm going to walk you through six dividend stocks that are worth your attention right now. These stocks are not only solid investments based on their current trading positions, but they also have the potential to rebound and soar while you collect dividends along the way.
Before diving into these stocks, let’s touch on some key macroeconomic factors that are shaping the current market environment—factors you should be aware of but not let deter you from dollar-cost averaging into these positions for long-term gains.
The Federal Reserve and Inflation: What You Need to Know
The Federal Reserve’s Interest Rate Policy
This past week, Federal Reserve Chairman Jerome Powell testified before the Senate, indicating that interest rates aren’t likely to come down anytime soon. While this isn't the news investors wanted to hear, it shouldn’t come as a surprise if you've been paying attention to economic trends.
Inflation’s Impact on Investing
The latest inflation report showed a 0.5% acceleration for the month, putting the annual inflation rate at 3%. Wall Street was spooked because economists expected 2.9%. This means inflation remains a challenge, keeping the Fed cautious about cutting rates.
Why does this matter to you? Because understanding inflation and interest rates can help identify discounted stock opportunities. With that in mind, let’s dive into six dividend stocks that are looking particularly attractive right now.
1. IDEX Corporation (IEX)
Why IDEX is a Great Dividend Pick
IDEX Corporation is an under-the-radar dividend option focused on fluid and metering technologies. The company operates in industries like food and agriculture, as well as health and science technology, making it a necessity in today’s world.
Recent Performance and Valuation
IDEX recently plummeted by over 11%, dropping from nearly $220 per share to just $193 per share. Many brokerages rate it a buy, and its five-year chart shows steady growth, making it an attractive long-term dividend investment.
Financial Stability
Revenue Growth: Revenue continues to pour in from various industry verticals.
Balance Sheet: Assets: $6.7 billion | Liabilities: $3 billion.
Dividend Yield: 1.43%.
Dividend Growth Rate: 12% average growth over the last 22 years.
Payout Ratio: 34%.
If you're looking for a steady and reliable dividend grower, IDEX is a great place to start.
2. Canadian National Railway (CNI)
Why CNI is Worth Your Attention
Canadian National Railway operates a vast 20,000-mile rail network across Canada and into the U.S. The firm is a key player in moving automobile parts, fertilizers, forest products, grains, and more.
Recent Performance and Valuation
The stock recently dropped to $102 per share from nearly $120 due to tariffs imposed on Canada by the U.S. While this has hurt short-term performance, the long-term trajectory remains strong.
Financial Stability
Revenue Growth: Despite tariff concerns, revenue grew by 1.3%.
Balance Sheet: Assets: $57 billion | Liabilities: $36 billion.
Dividend Yield: 2.39%.
Dividend Growth Rate: 15% average over 28 years.
Payout Ratio: 46%.
If you're looking for a stable, long-term dividend payer, Canadian National Railway is a solid pick.
3. Jack Henry & Associates (JKHY)
Why JKHY is a Hidden Gem
Jack Henry provides core information processing services to banks and credit unions, helping manage deposits, loans, and customer data. It also provides processing tools for ATMs and other card services.
Recent Performance and Valuation
Currently trading at $170 per share, Jack Henry has had some challenging years, but looking at the max chart, we see consistent long-term growth.
Financial Stability
Revenue Growth: Steady revenue inflows year over year.
Balance Sheet: Assets: $2.9 billion | Liabilities: $1 billion.
Dividend Yield: 1.36%.
Dividend Growth Rate: 14% average over 34 years.
Payout Ratio: 40%.
This is an excellent option for those looking for a financial sector play with strong dividend growth.
4. Texas Instruments (TXN)
Why TXN is a Top Tech Dividend Stock
Texas Instruments manufactures semiconductor chips, a crucial component for various industries. While many investors flock to Nvidia, Texas Instruments offers a more stable dividend option.
Recent Performance and Valuation
Trading at $180 per share, down from $200 earlier this year, Texas Instruments remains a steady growth machine.
Financial Stability
Balance Sheet: Assets: $35 billion | Liabilities: $18 billion.
Dividend Yield: 3.01%.
Dividend Growth Rate: 23% over the last 20 years.
Payout Ratio: Moderate.
For those looking for a long-term tech investment with a reliable dividend, Texas Instruments is a prime choice.
5. Robert Half (RHI)
Why RHI is an Attractive Opportunity
Robert Half is a recruiting services company that benefits from a lower interest rate environment. As businesses expand and hire more, RHI will see stronger demand.
Recent Performance and Valuation
The stock is trading under $60 per share, down due to current high interest rates. However, looking at 2021 and 2022, when interest rates were lower, Robert Half traded at much higher levels.
Financial Stability
Balance Sheet: Assets: $3 billion | Liabilities: $1.4 billion.
Dividend Yield: 4.04%.
Dividend Growth Rate: 13% over the last 40 years.
Payout Ratio: 85%.
This is a great option for those seeking high-yield dividend stocks.
6. PepsiCo (PEP)
Why PEP is a Safe Dividend Investment
PepsiCo is a household name, known for its beverages and snack foods (Doritos, anyone?). If you're looking for a blue-chip dividend stock, Pepsi is an excellent choice.
Recent Performance and Valuation
Currently trading at $144 per share, down from $154, PepsiCo hasn’t seen much green recently, making it an attractive long-term buy.
Financial Stability
Balance Sheet: Assets: $100 billion | Liabilities: $81 billion.
Dividend Yield: 3.94%.
Dividend Growth Rate: 10% year-over-year.
Payout Ratio: 65%.
Dividend Streak: 60 years.
For those seeking safety and reliability, PepsiCo is a must-have dividend stock.
Final Thoughts
These six dividend stocks offer a range of opportunities, from under-the-radar picks to well-established blue-chip investments. If you’re looking to build a strong dividend portfolio, these stocks deserve your attention.
Let me know in the comments if you have any better dividend stock recommendations. And if you haven't subscribed to my blog yet, do so to keep up with the latest investment insights!
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