Published on 9 Apr 2024 on Zacks via Yahoo Finance

5 Stocks to Watch on Their Recent Dividend Hike

U.S. stock markets have retreated in April after a sharp rally in the past 15 months. The euphoria surrounding equities evaporated as the yield on the benchmark 10-Year U.S. Treasury Note returned northward, trading above 4%. In the first week of April, the Dow tumbled 2.3%, posting its worst weekly performance in 2024. The S&P 500 slid 1% during the period, while the Nasdaq Composite fell 0.8%.

This was primarily owing to the uncertainty regarding the time when the Fed would initiate the first cut in the benchmark interest rate. Recently, a few key Fed FOMC members said that although they believe that the rate hike regime is over, they are yet to be convinced that the economic condition is conducive enough for an immediate rate cut.

Moreover, the labor market remains resilient. U.S. economy added 303,000 nonfarm jobs in March, well above the consensus estimate of 195,000. The unemployment rate in March was 3.8% compared with 3.9% in February.