Wall Street has been attempting to rebound over the past few sessions, following a period of volatility in October and November. However, concerns over high inflation, the economy’s health and uncertainty over a rate cut by the Federal Reserve in December continue to linger.
Consumer confidence remains low as the year comes to a close. These could turn markets volatile once again. Given the uncertainty, cautious investors looking for steady income and ways to protect their capital may consider holding or investing in dividend-paying stocks.
Such stocks provide steady earnings through regular dividend payouts and can help mitigate the effects of market volatility. Three such stocks are: Orange County Bancorp, Inc. OBT, Dillard’s, Inc. DDS and United Bankshares, Inc. UBSI.
Consumer sentiment declined further in November, hitting record lows. The University of Michigan’s Surveys of Consumers final reading for consumer sentiment came in at 51 in November, down from October’s reading of 53.6. Year over year, consumer sentiment is down 29%.
The Federal Reserve cut interest rates by 25 basis points each in its September and October meetings. However, the Federal Reserve has cautioned that inflation remains high and lower borrowing costs could pose a challenge for the central bank in fighting inflation. This has cast uncertainty over another interest rate cut in December.
A shrinking labor market has further raised fears over a slowing economy. Investors also anticipate that the Federal Reserve will take a cautious step toward rate cuts in 2026.
President Donald Trump’s tariffs have already led to a jump in commodity prices, compelling consumers to cut back on spending ahead of the all-important holiday season. These concerns could keep markets volatile for a longer period.
Orange County Bancorp, Inc. provides commercial and consumer banking services to individuals, small businesses and local municipal governments. OBT accepts checking and savings accounts, money market accounts, custodial accounts, certificates of deposit and remote deposits. Orange County Bancorp has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Nov. 20, Orange County Bancorp announced that its shareholders would receive a dividend of $0.18 a share on Dec. 16. OBT has a dividend yield of 1.90%. Over the past five years, Orange County Bancorp has increased its dividend four times, and its payout ratio presently sits at 17% of earnings. Check Orange County Bancorp’s dividend history here.