Wall Street has rallied over the past week, fueled by optimism following Donald Trump’s landmark victory in the U.S. Presidential election. All three major indexes hit new all-time highs, with the Dow and the S&P 500 crossing 44,000 points and 6,000 points for the first time earlier this week.

Also, a 25-basis point rate cut by the Federal Reserve last week has been boosting investors’ sentiment. However, there are several factors that could turn markets volatile again once the post-election enthusiasm subdues.

Given this situation, cautious investors looking for a steady income and safeguarding their capital may look to hold or buy dividend-paying stocks. Four such stocks are Snap-on Incorporated SNA, Griffon Corporation GFF, Churchill Downs Incorporated CHDN and Roper Technologies, Inc. ROP.

Inflation Ticks Higher

The Federal Reserve’s benchmark policy rate is now in the range of 4.5-4.75% after it cut interest rates by 50 and 25 basis points in September and November, respectively. The Federal Reserve believes that inflation is on track to reach its 2% target after declining substantially over the past year.

However, fresh data released on Wednesday shows that the consumer price index (CPI) rose 0.2% sequentially in October and 2.6% from year-ago levels, up 0.2% from September. Core CPI, which excludes volatile food and energy costs, rose 0.3% month over month in October and 3.3% annually.

Cautious Approach After Election

The Dow jumped more than 1,500 points the day after Trump won the election. The Fed’s rate cut fueled the rally, sending all three indexes on a new high. The recent rally is being driven by optimism surrounding lower taxes and lighter regulations under the Trump administration, as the president-elect is being seen as someone who openly addresses issues like the stock market and the dollar.

However, the rally has stalled over the past couple of days as investors are reassessing the situation following the release of the inflation data.

Also, market participants are worried about a significantly slower rate of future interest cuts due to robust macroeconomic data released earlier this month.

Also, geopolitical tensions in the Middle East continue to keep investors concerned about a full-scale war between Israel and Iran.

Stocks That Declared Dividend Hikes

Given this scenario, investing in dividend-paying stocks would be a wise choice. These companies maintain strong operations and consistently provide dividends, remaining profitable on account of their reliable business models. In a highly volatile market, companies that offer high dividend payouts tend to outperform those that do not pay dividends.

Snap-on Incorporated

Snap-on Incorporated is a global provider of professional tools, equipment, and related solutions for technicians, vehicle service centers, original equipment manufacturers and other industrial users. SNA’s products include a broad range of professional hand and power tools; vehicle diagnostics and service equipment; business management systems; and other tool and equipment solutions. SNA presently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

On Nov. 8, Snap-on Incorporated announced that its shareholders would receive a dividend of $2.14 a share on Dec. 10, 2024. SNA has a dividend yield of 2.06%. Over the past five years, Snap-on Incorporated has increased its dividend six times, and its payout ratio at present sits at 39% of earnings.Check Snap-on Incorporated’s dividend history here.

Snap-On Incorporated Dividend Yield (TTM)

Snap-On Incorporated dividend-yield-ttm | Snap-On Incorporated Quote

Griffon Corporation

Griffon Corporation is a diversified management and holding company conducting business through wholly-owned subsidiaries. GFF oversees the operations of its subsidiaries, allocates resources among them and manages their capital structures. GFF has a  Zacks Rank #3 (Hold).

On Nov. 13, Griffon Corporation declared that its shareholders would receive a dividend of $0.18 a share on Dec. 18, 2024. GFF has a dividend yield of 0.88%. Over the past five years, Griffon Corporation has increased its dividend eight times, and its payout ratio at present sits at 12% of earnings.Check Griffon Corporation's dividend history here.

Griffon Corporation Dividend Yield (TTM)

Griffon Corporation dividend-yield-ttm | Griffon Corporation Quote

Churchill Downs Incorporated

Churchill Downs Incorporated, the world's most legendary racetrack, has conducted Thoroughbred racing and presented America's greatest race, the Kentucky Derby. CHDN has Five racetracks; Six casinos; Big Fish Games, the world's largest distributor of casual games; The country's leading online wagering business, TwinSpires.com; A video poker business, A multi-state network of off-track betting facilities; and a collection of racing-related data, totalisator and telecommunication companies that support CDI's sports and gaming operations. CHDN has a Zacks Rank #3.

On Nov. 13, Churchill Downs Incorporated announced that its shareholders would receive a dividend of $0.41 a share on Jan. 3, 2025. CHDN has a dividend yield of 0.27%. Over the past five years, Churchill Downs Incorporated has increased its dividend six times, and its payout ratio at present sits at 7% of earnings.Check Churchill Downs Incorporated’s dividend history here.

Churchill Downs, Incorporated Dividend Yield (TTM)

Churchill Downs, Incorporated dividend-yield-ttm | Churchill Downs, Incorporated Quote

Roper Technologies

Roper Technologies, Inc. manufactures and distributes software and technology-enabled products and solutions. ROP caters to selected segments of a broad range of markets, which include legal, healthcare, government, food, transportation, oil & gas, medical, and other niche industries. ROP has a Zacks Rank #2.

On Nov. 8, Roper Technologies declared that its shareholders would receive a dividend of $0.83 a share on Jan. 17, 2025. ROP has a dividend yield of 0.53%. Over the past five years, Roper Technologies has increased its dividend six times, and its payout ratio at present sits at 17% of earnings.Check Roper Technologies’ dividend history here.

Roper Technologies, Inc. Dividend Yield (TTM)

Roper Technologies, Inc. dividend-yield-ttm | Roper Technologies, Inc. Quote

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Snap-On Incorporated (SNA) : Free Stock Analysis Report

Roper Technologies, Inc. (ROP) : Free Stock Analysis Report

Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report

Griffon Corporation (GFF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research