Volatility has returned to Wall Street, with all three major indexes retreating from their all-time highs. Concerns over high inflation, a shrinking labor market and renewed trade war fears with China have been denting investors’ sentiment. Also, the ongoing government shutdown has now been worrying investors.
Given this scenario, cautious investors seeking steady income and ways to protect their capital might want to retain or invest in dividend-paying stocks. These stocks can deliver consistent earnings through regular dividends and help cushion the impact of market fluctuations. Three such stocks are A. O. Smith Corporation AOS, Lockheed Martin Corporation LMT and THOR Industries, Inc. THO.
Markets have remained volatile since the end of September, as multiple factors continue to unsettle investors. On Tuesday, stocks nosedived once again. The S&P 500 and the Nasdaq ended 0.2% and 0.8% lower, respectively, on renewed fears of a trade spat with China that began last week.
Last week, Trump threatened to impose 100% tariffs on China, and on Tuesday, once again slammed Beijing for not buying soybeans from the United States. Trump’s tariff threats created further pressure on markets.
Investors have lately been deprived of any economic data owing to the ongoing government shutdown. This has made them unable to gauge the future of the economy’s health. Inflation is still high and a shrinking labor market has raised fears of the economy slipping into a recession.
Although the Federal Reserve cut interest rates by 25 basis points last month and has hinted at two more rate cuts this year, high inflation and a shrinking jobs market continue to worry investors.
A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. AOS specializes in offering innovative, and energy-efficient solutions and products, which are developed and sold globally. A. O. Smith Corporation has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Oct. 13, A. O. Smith Corporationannounced that its shareholders would receive a dividend of $0.36 a share on Nov. 17. AOS has a dividend yield of 2.01%. Over the past five years, A. O. Smith Corporationhas increased its dividend six times, and its payout ratio presently sits at 37% of earnings. Check A. O. Smith Corporation’s dividend history here.