3 Stocks to Watch That Declared Dividend Hikes Amid Market Volatility

Investors seeking stability in today's turbulent markets often turn to dividend-paying stocks as a shield against volatility. Three companies—Sysco (SYY), Portland General Electric (POR), and Johnson & Johnson (JNJ)—have recently raised their dividends, showcasing financial discipline and shareholder focus. With Morningstar's backing, these stocks offer a compelling mix of income potential and capital appreciation. Let's dive into why they're worth your attention.

Sysco (SYY): The Logistics Titan with a Growing Payout

Sysco's 6% dividend hike to $0.54 per share underscores its commitment to rewarding shareholders. As a Dividend Aristocrat with 50+ years of consecutive increases, Sysco's payout ratio of 40%-50% of adjusted EPS ensures financial conservatism. With fiscal 2024 sales exceeding $78 billion and operations in 10 countries, its scale and efficiency provide a moat against competition.

Morningstar assigns SYY a 4-star rating, valuing it at $80 per share (versus current prices), with a wide moat for its dominant food distribution platform. Analysts project 5% annual dividend growth through 2026, paired with $6.75 billion in buybacks. This stock is a defensive play in the consumer sector, insulated by its broad customer base and recession-resistant demand.

Portland General Electric (POR): Powering Income with Environmental Ambition

Portland General Electric's 5% dividend increase to $0.525 per share marks a return to growth after a brief pause in 2020. With a long-term payout target of 60%-70% of earnings, POR balances shareholder returns with investments in renewable energy and grid modernization. Its goal to achieve 100% carbon-free generation by 2040 aligns with ESG trends, bolstering its regulatory resilience.

Morningstar's 4-star rating and $53 fair value estimate highlight POR's undervaluation. While its narrow moat reflects geographic concentration in Oregon, its stable customer base and regulated rate model provide steady cash flows. For income-focused investors, POR's 2.8% yield and dividend growth trajectory make it a standout in a volatile energy landscape.

Johnson & Johnson (JNJ): A Dividend Giant with Long-Term Resolve

J&J's 4.8% dividend hike extends its 63-year streak of increases, a testament to its financial strength. Despite headwinds like biosimilar competition and litigation overhang, J&J's wide moat—driven by its diversified healthcare portfolio (pharma, medtech, consumer)—ensures resilience. Key drivers like the CAR-T therapy Carvykti and the robotic surgery system Ottava fuel growth, while its $164 Morningstar fair value estimate (vs. current prices) suggests upside potential.

While J&J trades at a premium to its fair value in certain currencies (e.g., €134.50 vs. a €161.49 estimate), its dividend safety is undeniable. With a 2.6% yield and a history of prioritizing payouts over share buybacks, J&J remains a cornerstone for portfolios seeking stability.

Why These Stocks Excel in Volatile Markets

1. Defensive Income Streams: All three companies prioritize dividend growth over capital risks, offering steady yields (2.6%-2.8%) in uncertain times.
2. Undervaluation Backed by Morningstar: SYY and POR trade below their $80 and $53 fair values, respectively, while J&J's wide moat justifies its premium despite temporary overvaluation.
3. Conservative Cash Management: Payout ratios tied to earnings (not debt) ensure sustainability, with Sysco and J&J emphasizing buybacks alongside dividends.

Call to Action: Build Income Resilience Now

As markets oscillate, these dividend growers offer a rare combination: income security and growth potential. Sysco's logistics dominance, Portland General's regulated stability, and J& Johnson's innovation pipeline make them ideal for income-focused investors.

Don't wait—act now to secure these undervalued opportunities. Their shareholder-friendly strategies and Morningstar-endorsed moats position them to thrive through volatility and beyond.

Investment decisions should consider your personal financial situation. Always consult with a financial advisor before making portfolio changes.