Tech stocks have been taking a hit, leading volatility to return to Wall Street over the past few weeks. Over the past few years, tech stocks have led the market rally, but investors have recently been concerned about the profitability of the ongoing surge in artificial intelligence (AI) investments.
Also, several other factors have been denting investor sentiment. 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: CenterPoint Energy, Inc. CNP, Marriott Vacations Worldwide Corporation VAC, PG&E Corporation PCG and Zoetis Inc. ZTS.
Tech stocks have been primarily responsible for the broader market rally that saw all three major indexes hit multiple all-time highs this year. However, the final weeks of 2025 are witnessing volatility return to Wall Street.
Investors have lately been dumping riskier assets, such as the high-growth tech stocks, and taking refuge in safe-haven stocks. The ongoing tech turmoil stems from concerns over the profitability of the recent surge in investments in AI.
A large number of companies have been entering new deals and pumping in millions of dollars to explore the untapped AI space. While the surge in investments by big tech companies saw their share prices jump initially, investors have lately raised doubts about their sky-high valuations and fear that AI is yet another bubble that would eventually burst.
Investors are also worried about the economy’s health and its future. Last week, the Federal Reserve cut interest rates by 25 basis points for the third time this year but has warned that aggressive rate cuts could pose a challenge in fighting inflation.
A weakening labor market has added to the concerns, with the unemployment rate reaching 4.6% in November. Several Federal Reserve officials have maintained a hawkish stance and warned against lowering borrowing rates anytime soon.
CenterPoint Energy, Inc. is a domestic energy delivery company that provides electric transmission and distribution, power generation, and natural gas distribution operations to more than 7 million metered customers across six states — Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. CNP currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Dec. 12, CenterPoint Energyannounced that its shareholders would receive a dividend of $0.23 a share on March 12. CNP has a dividend yield of 2.30%. Over the past five years, CenterPoint Energyhas increased its dividend eight times, and its payout ratio presently sits at 51% of earnings. Check CenterPoint Energy ’s dividend history here.
Marriott Vacations Worldwide Corporation, a leading global vacation company, offers vacation ownership, exchange, rental, resort and property management services. As of June 30, 2025, VAC operated approximately 120 resorts and had nearly 700,000 owners and members across a diverse portfolio of seven vacation ownership brands. Marriott Vacations Worldwide Corporation carries a Zacks Rank #3 (Hold).
On Dec. 12, Marriott Vacations Worldwide Corporationdeclared that its shareholders would receive a dividend of $0.80 a share on Jan. 7. VAC has a dividend yield of 5.46%. Over the past five years, Marriott Vacations Worldwide Corporationhas increased its dividend five times, and its payout ratio presently sits at 44% of earnings. Check Marriott Vacations Worldwide Corporation’s dividend history here.
PG&E Corporation is the parent holding company of California’s largest regulated electric and gas utility, Pacific Gas and Electric Company. PCG utility generates revenues mainly through the sale and delivery of electricity and natural gas to customers. PG&E Corporation currently has a Zacks Rank #2.
On Dec. 12, PG&E Corporation announced that its shareholders would receive a dividend of $0.05 a share on Jan. 15. PCG has a dividend yield of 0.65%. Over the past five years, PG&E Corporation has increased its dividend three times, and its payout ratio presently sits at 7% of earnings. Check PG&E Corporation’s dividend history here.
Zoetis Inc. is a leader in the animal health space, which focuses on livestock and companion animals in seven major product categories: parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceuticals and animal health diagnostics. ZTS has a diversified business, which caters to eight core species — cattle, swine, poultry, fish and sheep (collectively, livestock) and dogs, cats and horses (collectively, companion animals).
On Dec. 11, Zoetisdeclared that its shareholders would receive a dividend of $0.53 a share on March 3. ZTS has a dividend yield of 1.65%. Over the past five years, Zoetishas increased its dividend six times, and its payout ratio presently sits at 32% of earnings. Check Zoetis’ dividend history here.
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Pacific Gas & Electric Co. (PCG) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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