Volatility returned to Wall Street at the beginning of the year, with multiple factors denting investors’ sentiment. Rising inflation, resulting in a halt in rate cuts by the Federal Reserve and growing fears of a trade war following President Donald Trump’s announcement of hefty tariffs on several countries have been rattling stocks.
The volatility could escalate in the coming days, as uncertainty over the economy’s health continues to grow. Given this situation, investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Three such stocks are Vermilion Energy Inc. VET, Chord Energy Corporation CHRD and Viper Energy, Inc. VNOM.
An unexpected rise in inflation over the past three months has raised concerns of a slowing economy, with major indexes retreating from their earlier highs seen in 2024. The Federal Reserve issued an alert in late 2024 that there will be fewer rate cuts this year as inflation has shown signs of escalating.
The Fed left interest rates unchanged in January and has hinted at adopting a cautious approach till inflation shows signs of cooling. Market participants now believe that the Federal Reserve wouldn’t go for a rate cut before the second half of the year. Moreover, it is unlikely that the Fed will go for more than one rate cut this year.
To make matters worse, Trump’s proposed tariffs have raised fears of a trade war. Trump has announced 25% tariffs on Canadian and Mexican imports before temporarily pausing them for the second time earlier this week. Both nations have also announced retaliatory tariffs if Trump’s tariffs go into effect.
Besides, Trump has already imposed 10% tariffs on Chinese goods, with Beijing having already retaliated. The ongoing tensions could keep markets volatile for a longer period.
Given the present circumstances, investing in stocks that pay out dividends could be a smart choice. Such companies usually remain stable, consistently distributing dividends while sustaining profitability through strong business strategies. In a fluctuating market, companies that provide significant dividend payments often outperform those that do not.
Vermilion Energy Inc. is an international oil and gas producer with properties in Western Canada, Australia, France and the Netherlands. VET has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
On March 6, Vermilion Energyannounced that its shareholders would receive a dividend of $0.09 a share on April 15. VET has a dividend yield of 4.41%. Over the past five years, Vermilion Energyhas increased its dividend nine times, and its payout ratio at present sits at 43% of earnings. Check Vermilion Energy’s dividend history here.
Chord Energy Corporation is an independent exploration and production company with its long-lived assets in the Williston Basin. CHRD, formerly known as Oasis Petroleum Inc., is headquartered in Houston. Chord Energyhas a Zacks Rank #3.
On March 6, Chord Energy Corporation declared that its shareholders would receive a dividend of $1.30 a share on March 26. CHRD has a dividend yield of 4.93%. Over the past five years, Chord Energy Corporation has increased its dividend nine times, and its payout ratio at present sits at 30% of earnings. Check Chord Energy Corporation’s dividend history here.
Viper Energy, Inc. is a subsidiary of independent oil & gas exploration and production company — Diamondback Energy. VNOM has mineral interests in prolific oil-rich shale plays like the Eagle Ford and Permian Basin. Viper Energy carries a Zacks Rank #3.
On March 6, Viper Energy announced that its shareholders would receive a dividend of $0.65 a share on March 13. VNOM has a dividend yield of 2.79%. Over the past five years, Viper Energyhas increased its dividend 14 times, and its payout ratio at present sits at 59% of earnings. Check Viper Energy’s dividend history here.
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Vermilion Energy Inc. (VET) : Free Stock Analysis Report
Viper Energy Inc. (VNOM) : Free Stock Analysis Report
Chord Energy Corporation (CHRD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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