5 Quality Stocks With Recent Dividend Hikes to Watch Now
At first glance, the U.S. economy looks remarkably stronger in the beginning of second half of 2026 than many investors expected. Despite solid stock market gains and easing inflation, several risk factors, such as geopolitical tensions, oil supply disruptions, trade uncertainties, and shifting Federal Reserve policies, continue to challenge the U.S. economy. The labor market has shown resilience, although the pace of hiring has slowed noticeably.
The June nonfarm payrolls increased by just 57,000, while ADP reported 98,000 new private-sector jobs. Although unemployment dipped to 4.2%, labor force participation fell to 61.5%, its lowest level since 2021, pointing to underlying weakness. Hiring has also become uneven, with manufacturing, construction and leisure sectors lagging.
Inflation has certainly improved, but investors should not assume that the problem has disappeared. June's Consumer Price Index fell 0.4% from the previous month, while annual inflation eased to 3.5% largely due to lower oil prices after the Strait of Hormuz reopened. However, military tensions, which have resurfaced several times, could quickly reverse that progress. Trade uncertainty, a wider $77.6 billion trade deficit, weak housing activity, and high mortgage rates remain additional concerns.
Meanwhile, the market's heavy reliance on AI-driven stocks and uncertainty over future Federal Reserve policy could increase volatility. These challenges suggest investors should remain selective and prepared for a more volatile market despite the economy's overall resilience.
Amid such market conditions, cautious investors who wish to diversify their portfolios and pick dividend-paying stocks can keep a tab on some prominent names, such as State Street STT, The Goldman Sachs Group GS, Cummins CMI, Ryder System R and Unum Group UNM. 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. Moreover, stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying entities in a highly volatile market.
State Street
State Street provides a range of financial products and services for institutional investors worldwide through its subsidiaries. This Zacks Rank #2 (Buy) company is headquartered in Boston, MA. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On July 14, STT declared that its shareholders would receive a dividend of 92 cents a share on Oct. 13, 2026. STT has a dividend yield of 1.8%.
Over the past five years, STT has increased its dividend six times, and its payout ratio presently sits at 30% of earnings. Check State Street's dividend history here.
State Street Corporation Dividend Yield (TTM)
State Street Corporation dividend-yield-ttm | State Street Corporation Quote
Goldman Sachs
Goldman Sachs is headquartered in New York, NY. This Zacks Rank #2 is a leading global financial holding company providing IB, securities, investment management, and consumer banking services to a diversified client base.
On July 13, GS declared that its shareholders would receive a dividend of $5 a share on Sept. 29, 2026. GS has a dividend yield of 1.6%.
In the past five years, GS has increased its dividend seven times. Its payout ratio is currently 33% of earnings. Check Goldman Sachs’ dividend history here.
The Goldman Sachs Group, Inc. Dividend Yield (TTM)
The Goldman Sachs Group, Inc. dividend-yield-ttm | The Goldman Sachs Group, Inc. Quote
Cummins
Cummins is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. This Columbus, IN-based company currently carries a Zacks Rank #2.
On July 12, CMI declared that its shareholders would receive a dividend of $2.20 a share on Sept. 3, 2026. CMI has a dividend yield of 1.2%.
Over the past five years, CMI has increased its dividend six times, and its payout ratio presently sits at 33% of earnings. Check Cummins’ dividend history here.
Ryder System
Ryder System is headquartered in Coral Gables, FL. This Zacks Rank #2 company is recognized as one of the world's largest providers of integrated logistics and transportation solutions.
On July 9, R declared that its shareholders would receive a dividend of $1.01 a share on Sept. 18, 2026. R has a dividend yield of 1.4%.
In the past five years, R has increased its dividend six times. Its payout ratio is currently 28% of earnings. Check Ryder System’s dividend history here.
Ryder System, Inc. Dividend Yield (TTM)
Ryder System, Inc. dividend-yield-ttm | Ryder System, Inc. Quote
Unum Group
Unum Group provides financial protection benefit solutions in the United States, the United Kingdom and Poland. This Chattanooga, TN-based company currently carries a Zacks Rank #3 (Hold).
On July 9, UNM announced that its shareholders would receive a dividend of 51 cents a share on Aug. 14, 2026. UNM has a dividend yield of 2.1%.
Over the past five years, UNM has increased its dividend six times. Its payout ratio now sits at 22% of earnings. Check Unum Group's dividend history here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).
