When firms increase their dividends, it is typically a positive sign that they are generating excess cash flows that can be distributed to shareholders.

Additionally, investing in a firm with consecutive dividend hikes, is a sign that the company has strong fundamentals.

Since valuations continue to decline, investors may want to seek stocks that can support dividend hikes during the tough macroeconomic environment. As the recent consumer price index and producer price index did not show sufficient signs of inflation cooling, investors should be wary of further headwinds.

Also Read: These 2 Delta Air Lines Analysts Remain Bullish Despite Earnings Miss

Here's a look at Tanger Factory Outlet Centers Inc. SKT , McDonald’s Corporation MCD and Commercial Metals Company CMC .

See Also: KeyBanc Bumps Up Price Target For 4 Metal & Mining Companies

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.