Major U.S. indexes have been extremely volatile so far this year. After a solid rebound in 2024, the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite slid 6.12%, 4.07%, and 10.40% over the year-to-date period, respectively. Investors are concerned about a deep trade war due to the aggressive shifting of U.S. foreign policies, a potential government shutdown, and an impending recession. President Donald Trump's fiscal, trade and immigration policies have led investors to take a cautious approach.

According to the Department of Labor report, the Consumer Price Index (CPI) increased 0.2% in February after rising 0.5% in January, much cooler than expected. On an annual basis, CPI dropped 2.8% from 3% in January. Trump's tariff moves with key trading partners have stroked fears of rising inflation and a slowdown in economic growth among market participants. Persistent inflation is another major negative for the market as it will leave less room for the Federal Reserve to cut interest rates, currently in the range of 4.25-4.50%. There is huge uncertainty regarding rate cuts in the changed scenario from earlier expectations of two to three rate cuts by the Fed at the beginning of this year. The labor market remains stable, but immigration policies, widespread layoffs of federal workers, and an escalating global trade war threaten its stability.

Amid such volatile market conditions, investors who wish to diversify their portfolio can invest in dividend-paying stocks. Some of the prominent names are Toll Brothers TOL, DICK'S Sporting Goods DKS, KornFerry International KFY, Banco Santander SAN and Applied Materials AMAT. Companies that pay out dividends consistently indicate a healthy business model. Stocks that have raised dividends recently exhibit a sound financial structure and can counter market upheavals. Stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying stocks in a highly volatile market.

Toll Brothers

Toll Brothers builds single-family detached and attached home communities; master-planned luxury residential resort-style golf communities; and urban low, mid, and high-rise communities, principally on the land it develops and improves. This Fort Washington, PA-based company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

On March 11, TOL declared that its shareholders would receive a dividend of 25 cents a share on April 25, 2025. TOL has a dividend yield of 0.9%.

Over the past five years, TOL has increased its dividend five times, and its payout ratio presently sits at 7% of earnings. Check Toll Brothers’ dividend history here.

DICK'S Sporting Goods

DICK'S Sporting Goods is headquartered in Coraopolis, PA. This Zacks Rank #3 company operates as a major omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc.

On March 10, DKS declared that its shareholders would receive a dividend of $1.21 a share on April 11, 2025. DKS has a dividend yield of 2.3%.

In the past five years, DKS has increased its dividend seven times. Its payout ratio is currently 31% of earnings. Check DICK'S Sporting Goods’ dividend history here.

KornFerry International

KornFerry Internationalis the world's leading and largest executive recruitment firm with the broadest global presence in the executive recruitment industry. The Zacks Rank #2 (Buy) company is headquartered in Los Angeles, CA.                

On March 10, KFY announced that its shareholders would receive a dividend of 48 cents a share on April 15, 2025. KFY has a dividend yield of 2.2%.

Over the past five years, KFY has increased its dividend six times. Its payout ratio now sits at 31% of earnings. Check KornFerry International's dividend history here.

Banco Santander

Banco Santander is the biggest bank in Spain which provides banking services for individuals and companies, leasing, factoring, stockbrokerage and mutual fund services. This Madrid, Spain-based company currently carries a Zacks Rank #3.

On March 7, SAN declared that its shareholders would receive a dividend of 8 cents a share on May 7, 2025. SAN has a dividend yield of 2.4%.

Over the past five years, SAN has increased its dividend seven times, and its payout ratio presently sits at 19% of earnings. Check Banco Santander’s dividend history here.

Applied Materials

Applied Materials is one of the world’s largest suppliers of equipment for the fabrication of semiconductor, flat panel liquid crystal displays, and solar photovoltaic cells and modules. The Zacks Rank #3 company is headquartered in Santa Clara, CA.                  

On March 10, AMAT announced that its shareholders would receive a dividend of 46 cents a share on June 12, 2025. AMAT has a dividend yield of 1.1%.

Over the past five years, AMAT has increased its dividend six times. Its payout ratio now sits at 18% of earnings. Check Applied Materials' dividend history here.

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Korn/Ferry International (KFY) : Free Stock Analysis Report

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