The Zacks Analyst Blog Highlights American Financial Group, Berkshire Hills Bancorp, Snap-on, Northern Oil and Gas and Service Corporation

For Immediate Release

Chicago, IL – November 10, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: American Financial Group, Inc. AFG, Berkshire Hills Bancorp, Inc. BHLB, Snap-on Inc. SNA, Northern Oil and Gas, Inc. NOG and Service Corporation International SCI.

Here are highlights from Wednesday’s Analyst Blog:

Buy These 5 Stocks that Recently Announced Dividend Hikes

Wall Street witnessed a solid rebound in October after a disappointing September, and it has been a good November so far. On Nov 8, all three major indexes closed higher for the third straight day.

However, market participants remain concerned as the Fed last week not only went for a steep rate hike but also hinted at continuing its aggressive monetary policy till it is able to get complete control over surging inflation.

The Fed is now expected to go ahead with its steep rate hikes till sky-high commodity prices don’t cool off to the desired levels. Also, bond yields have lately been rising to record highs on fears of further steep interest rate hikes.

Fed to Continue Hiking Interest Rates

Investors had held high hopes that the Fed might go slow on its aggressive rate hike stance after economic data released in late October hinted at easing inflation. Market participants had hoped that the rate hike in November could also be the last of the steep interest rate hikes.

On Nov 4, the Fed hiked interest rates by 75 basis points for the fourth consecutive time this year. The 75-basis point hike was expected and Fed Chair Jerome Powell also hinted that it is too premature to think about pausing the aggressive rate hikes.

Instead, Powell indicated at the Fed to continue with its steep rate hike stance and that the Fed’s benchmark rate may require topping the level of core inflation to get complete control of surging inflation.

Powell’s comments now suggest that the central bank is likely to push its benchmark interest rate target above the 5% mark and then leave it there for a while for core inflation to come down to its target 2%.

The inflation reading showed an 8.2% surge in September on a year-over-year basis. Although inflation has marginally eased from August’s high of 8.3%, it is still in an uncomfortable zone for the average American and the Fed.

Also, COVID-19 infections are on the rise in China once again. Authorities have implemented restrictions to stop another outbreak. Amid all these, the ongoing geopolitical unrest between Russia and Ukraine poses risks to the global supply chain and is resulting in volatility in the stock market.

Higher interest rates mean a higher cost of borrowing. This increases the possibility of an economic downturn. Both are negative signs for markets, which have been experiencing volatility throughout this year.

So, it makes sense for an astute investor to keep an eye on dividend-paying stocks. This is because dividend stocks can endure market volatility since they have a history of success and a strong business model.

They offer a steady stream of revenues and have fewer chances of their prices moving significantly. Actually, during times of market turbulence, dividend-paying equities have frequently outperformed non-dividend-paying stocks. Five such companies are American Financial Group, Inc., Berkshire Hills Bancorp, Inc., Snap-on Inc., Northern Oil and Gas, Inc. and Service Corporation International.

American Financial Group, Inc. is a holding company, which, through its subsidiaries, engages primarily in property and casualty insurance, with a focus on specialized commercial products for businesses. AFG also engages in the sale of traditional fixed, fixed-indexed and variable-indexed annuities in the retail, financial institutions, registered investment advisor and education markets. AFG presently carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On Nov 7, 2022, American Financial Group announced that its shareholders would receive a dividend of $2 per share on Nov 22, 2022. AFG has a dividend yield of 1.70%. Over the past 5 years, American Financial Group has increased its dividend 16 times, and its payout ratio is presently 18% of earnings. Check AFG’s dividend history here.

American Financial Group, Inc. dividend-yield-ttm | American Financial Group, Inc. Quote

Berkshire Hills Bancorp, Inc. is a bank holding company. Through its subsidiaries, BHLB is engaged as a community bank that accepts retail deposits from the general public in areas surrounding its full-service banking offices and uses those funds, together with funds generated from operations and borrowings, to originate residential mortgage loans, commercial business and real estate loans and consumer loans, primarily indirect automobile loans.

On Nov 4, 2022, Berkshire Hills Bancorp declared that its shareholders would receive a dividend of $0.18 per share on Dec 1, 2022. BHLB has a dividend yield of 1.64%. Over the past 5 years, Berkshire Hills Bancorp has increased its dividend four times, and its payout ratio is presently 24% of earnings. Check BHLB’s dividend history here.

Berkshire Hills Bancorp, Inc. dividend-yield-ttm | Berkshire Hills Bancorp, Inc. Quote

Snap-on Inc. 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.

On Nov 4, 2022, Snap-on Incorporated announced that its shareholders would receive a dividend of $1.62 per share on Dec 9, 2022. SNA has a dividend yield of 2.48%. Over the past 5 years, Berkshire Hills Bancorp has increased its dividend six times, and its payout ratio is presently 34% of earnings. Check SNA’s dividend history here.

SnapOn Incorporated dividend-yield-ttm | SnapOn Incorporated Quote

Northern Oil and Gas, Inc. is an independent upstream operator engaged in the acquisition, exploration, development and production of oil and natural gas properties. Headquartered in Minnetonka, MN, NOG is primarily focused on three leading basins of the United States — the Williston, Permian and the Appalachian.

On Nov 3, 2022, Northern Oil and Gas declared that its shareholders would receive a dividend of $0.30 per share on Jan 31, 2023. NOG has a dividend yield of 2.82%. Over the past 5 years, Northern Oil and Gas has increased its dividend six times, and its payout ratio is presently 15% of earnings. Check NOG’s dividend history here.

Northern Oil and Gas, Inc. dividend-yield-ttm | Northern Oil and Gas, Inc. Quote

Service Corporation International has been strengthening its funeral and cemetery businesses for a while now. With a wide repertoire of funeral service and cemetery operations, SCI remains well-positioned to take advantage of the aging Baby Boomer generation.

On Nov 2, 2022, Service Corporation International declared that its shareholders would receive a dividend of $0.27 per share on Dec 30, 2022. SCI has a dividend yield of 1.41%. Over the past 5 years, Service Corporation International has increased its dividend seven times, and its payout ratio is presently 25% of earnings. Check SCI’s dividend history here.

Service Corporation International dividend-yield-ttm | Service Corporation International Quote

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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SnapOn Incorporated (SNA) : Free Stock Analysis Report
 
American Financial Group, Inc. (AFG) : Free Stock Analysis Report
 
Berkshire Hills Bancorp, Inc. (BHLB) : Free Stock Analysis Report
 
Service Corporation International (SCI) : Free Stock Analysis Report
 
Northern Oil and Gas, Inc. (NOG) : Free Stock Analysis Report
 
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