Three High-Yield Dividend Stocks to Watch in Volatile Markets

As bond markets fluctuate and investors seek reliable cash flow, high-yield dividend stocks are gaining attention. Central banks continue to grapple with inflation, pushing up government borrowing costs and making steady income streams more valuable. In this context, three stocks with strong dividend profiles are highlighted: Southside Bancshares, NIKE, and Peoples Bancorp.

Southside Bancshares (SBSI) is a Texas-based regional bank with a market cap of US$916 million. It generates about US$245 million in revenue from banking activities, offering recurring interest and fee income that supports its high-yield dividend. The bank's exposure to Texas's population and job growth is driving strong loan production and commercial deposit growth, which should bolster future revenue and earnings.

NIKE (NKE), a global sportswear giant with a market cap of US$50.3 billion, generates most of its revenue from its North American operations, with significant sales in Europe, Asia, and other regions. The company's dividend appeal hinges on its ability to sustain a higher yield without overstretching its cash flows. However, NIKE faces risks associated with its high uncertainty rating, requiring continuous innovation and product quality to maintain its market position.

Peoples Bancorp (PEBO) is a community-focused U.S. bank with a market cap of US$1.3 billion. It generates about US$435 million in revenue from community banking activities. The bank's long-standing community banking engine supports a 3%+ yield, aiming to be both covered and repeatable through credit cycles. Robust loan growth and population migration to the areas where it operates are positioning Peoples Bancorp for increased loan demand and local economic strength.