Venkatesh
Tue, Apr 22, 2025, 8:02 AM 6 min read
In This Article:
We recently compiled a list of the 10 Dividend Paying Stocks Insiders Are Buying. In this article, we are going to take a look at where Ashland Inc. (NYSE:ASH) stands against the other dividend paying stocks.
Uncertainty is not among the market's favorites. Yet, at present, uncertainty is prevailing throughout the market. The U.S.-China trade escalation and the new tariffs on all other U.S. trading partners have left investors scrambling to find stable ground.
READ ALSO: 10 Safest Dividend Stocks to Buy Now
Just this week, CNBC reported President Trump's announcement to charge steep fees on ships built in China, presently docking at the U.S. ports, a move the analysts perceive could cause the shipping costs to go high and send a ripple through consumer prices. China, the significant retaliator to Trump's tariffs, has started targeting the U.S. service sector by threatening everything from tourism to tech talent pipelines. Even the blue-chip stocks find the current climate unfavorable, thus increasing the adoption rate of another strategy: dividend-paying stocks. And here's the kicker – insiders are loading up on them.
Dividends are the financial shock absorbers when growth stocks swing wildly on trade war headlines. Investors in such an unfavorable market condition often prioritize the cash flow today rather than the promises of growth tomorrow. Historically, in many instances, when the market is experiencing turbulence, the dividend-paying stocks outperformed their non-dividend peers. In addition to padding the portfolio, the dividend stocks have signaled corporate resilience. And right now, insiders like executives and board members are betting big on the stability of the dividend stocks.
Corporate leaders buy shares of their companies to add credibility to the stocks. At the same time, it also indicates that they see an undervalued potential in their stocks. Unlike analysts, the insiders have first-hand information regarding earnings forecasts, balance sheets, and the company's strategies that would allow it to weather the upcoming storms.
The recent U.S.-China tariff escalations stand as a prime example of such storms. The headlines focus on the two countries' shipping fees and rare-earth export controls. Meanwhile, board members of some companies are scooping up stocks. But these are not speculative plays; they are calculated decisions made using the unique knowledge of the company's cash flows, debt, and history of raising dividends.
Now, let us zoom out. The market position is clear. According to CNBC, volatility has become the new normal with China's retaliation squeezing the services trade sector, where the U.S. holds a $32 billion surplus. Finding an appropriate dividend that could add some resilience to the portfolio becomes a necessity. Using insider backing to find the best stock offers a rare blend of defensive positioning and growth potential.
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