The U.S. economy continues to hold up well, but the latest data tell a mixed story. Inflation remains the biggest concern, with July PCE inflation rising 3.7% year over year and core PCE rising 3.3%, both well above the Federal Reserve’s 2% target. GDP growth was revised to 1.5% in the second quarter, pointing to slower economic momentum. Consumer spending is losing momentum, rising only 0.2% in July, while retail sales fell 0.6%. Consumer confidence dropped to 89.4 in August, and consumer sentiment declined to 51. Still, the labor market remains relatively steady, with initial jobless claims at 206,000.
Markets are navigating a delicate balance. The Federal Reserve kept interest rates at 3.5-3.75%, but its minutes showed that further hikes remain possible if inflation stays elevated. Rising oil prices, which climbed above $90 a barrel, driven by U.S.-Iran tensions and risks around the Strait of Hormuz, are adding to the inflation threat. Treasury yields have also climbed sharply, with the 30-year yield near 5.3%, pressuring stocks, especially expensive technology shares. These pressures could keep inflation sticky and borrowing costs elevated, making the Fed’s policy path tricky.
For investors, the key risks are persistent inflation, weaker consumer demand, high borrowing costs, geopolitical uncertainty and stretched AI valuations. The economy is holding up, but the road ahead looks anything but smooth.
In 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 Nordson Corporation NDSN, Farmers National Banc FMNB, MGE Energy MGEE, Intuit INTU and QCR Holdings QCRH. 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.
Nordson Corporation
Nordson Corporation is one of the leading manufacturers as well as distributors of products and systems designed to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids. This Zacks Rank #2 (Buy) company is headquartered in Westlake, OH. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Aug. 27, NDSN declared that its shareholders would receive a dividend of 94 cents a share on Oct. 2, 2026. NDSN has a dividend yield of 1%.
Over the past five years, NDSN has increased its dividend five times, and its payout ratio presently sits at 28% of earnings. Check Nordson Corporation's dividend history here.
Farmers National Banc
Farmers National Banc is headquartered in Canfield, OH. This Zacks Rank #3 (Hold) entity operates as a bank holding company for The Farmers National Bank of Canfield, which is engaged in commercial and retail banking.
On Aug. 25, FMNB declared that its shareholders would receive a dividend of 18 cents a share on Sept. 30, 2026. FMNB has a dividend yield of 4.3%.
In the past five years, STE has increased its dividend four times. Its payout ratio is currently 40% of earnings. Check Farmers National Banc’s dividend history here.
MGE Energy
MGE Energy is a public utility holding company in the United States. This Madison, WI-based company currently carries a Zacks Rank #2.
On Aug. 21, MGEE declared that its shareholders would receive a dividend of 51 cents a share on Sept. 15, 2026. MGEE has a dividend yield of 2.4%.
Over the past five years, MGEE has increased its dividend six times, and its payout ratio presently sits at 47% of earnings. Check MGE Energy’s dividend history here.
Intuit
Intuit is headquartered in Mountain View, CA. This Zacks Rank #3 is a business and financial software company that develops and sells financial, accounting and tax preparation software and related services for small businesses, consumers and accounting professionals globally.
On Aug. 20, INTU declared that its shareholders would receive a dividend of $1.38 a share on Oct. 16, 2026. INTU has a dividend yield of 1.4%.
In the past five years, INTU has increased its dividend six times. Its payout ratio is currently 27% of earnings. Check Intuit’s dividend history here.
QCR Holdings
QCR Holdings provides full-service commercial and consumer banking, and trust and asset management services. This Moline, IL-based company currently carries a Zacks Rank #3.
On Aug. 20, QCRH announced that its shareholders would receive a dividend of 15 cents a share on Oct. 5, 2026. QCRH has a dividend yield of 0.4%.
Over the past five years, QCRH has increased its dividend two times. Its payout ratio now sits at 5% of earnings. Check QCR Holdings' dividend history here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Intuit Inc. (INTU): Free Stock Analysis Report
Nordson Corporation (NDSN): Free Stock Analysis Report
QCR Holdings, Inc. (QCRH): Free Stock Analysis Report
MGE Energy Inc. (MGEE): Free Stock Analysis Report
Farmers National Banc Corp. (FMNB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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