Dividend.com analyzes the search patterns of our visitors each week. By sharing these trends with our readers, we hope to provide insights into what the financial world is concerned about and how to position your portfolio.
Pipeline operator Enbridge is first in the list this week as the company is ready to bid for a massive pipeline in Brazil. Second in the list is Pfizer, a company that has been trending often recently. Bank of America is third as the giant financial institution prepares to expand its trading operations. The list is closed by tobacco company Altria.
Don’t forget to read our previous edition of trends here.
Enbridge
Pipeline operator Enbridge (ENB) has taken the first spot in the list with an advance in viewership of 24%. Enbridge has been trending for a few weeks now, partly thanks to its ongoing dispute with the Michigan State’s authorities, who have ordered the closure of a line, although the company said it will not obey the directive until ordered by a court.
These past two weeks, Enbridge trended for different reasons. According to media reports, the company is considering mounting a bid for Brazil’s largest natural gas pipeline. Enbridge, along with buyout shop EIG Global Energy Partners and Belgian pipeline operator Fluxys, submitted offers for stakes in the TBG and TSB pipeline, which are nearly 2,600 kilometers long. Enbridge and its partners advanced the bids after Petrobras put the stakes up for sale.
At the same time, Enbridge, which moves around 25% of oil and 20% of natural gas in North America, announced on June 7 that it is selling its interest in Noverco, an energy company based in Quebec, Canada. For its 38.9% stake in Noverco, Enbridge will receive $1.14 billion from Trencap.
Enbridge pays an annual dividend of $2.57 per share, representing a yield of 6.65%. Shares in Enbridge are up by 17% so far this year.
Source: Barchart.com
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Pfizer
Pharmaceutical company Pfizer (PFE) has taken the second place in the list this week with an advance in viewership of 14%. Pfizer has trended recently largely due to the company being the world’s primary distributor of COVID-19 vaccines.
Over the past two weeks, the reason for Pfizer’s popularity has not changed. Indeed, Pfizer and its partner BioNTech have received British approval for their jab to be used in children aged between 12 and 15 years old.
This is likely to lead to an increase in demand for Pfizer’s vaccine and more revenue for the company. Pfizer’s revenue for the first quarter increased by 44.6% to $14.6 billion, compared to the same period a year ago. In the second quarter, revenues are expected to increase even further.
Despite the company’s blockbuster vaccine, the stock is still trading below a high reached in December 2020.
Pfizer pays an annual dividend of $1.16 per share, amounting to a yield of nearly 3%.
Source: Barchart.com
Check out our latest Best Dividend Stocks List here.
Bank of America
Bank of America (BAC) has taken the third place with an advance in traffic of 13%.
The company made news after CEO Brian Moynihan said at a conference that the bank’s trading and sales team has performed very well and the company will plow more capital into the division. Amid increased volatility during the COVID-19 pandemic last year, trading surged, leading to rising profits for both investment banks and universal banks like Bank of America that act as intermediaries for investors.
At the same time, Moynihan and other CEOs of large banks have been questioned by the U.S. Congress about banks’ lending practices, particularly the practice of making loans to companies that might not tackle issues like climate change and racial inequality with enough urgency.
Shares in Bank of America are up by 43% since the start of the year, beating peers like Citigroup and JPMorgan Chase. Bank of America is also the best performer among the four universal banks over the past five years, up by 210%.
Source: Barchart.com
Altria
Major tobacco company Altria (MO) has taken the last place in the list, with a tepid rise in viewership of just 1%.
Altria made it to the top of the list partly because of its high dividend yield. The company pays an annual dividend of $3.44 per share, or a yield of nearly 7%. The 22% drop in the stock price over the past five years, however, essentially cancels most gains from the dividend.
Altria has been on investors’ radars primarily because it sells tobacco products, which have been unpopular with the younger generation. As a result, it has been experiencing stagnating revenues over the past five years, partly offset by growth from its investments in ventures like Juul, an e-cigarette maker, and Cronos Group, a cannabis company.
In the first quarter of 2021, Altria’s revenues fell by 3.3% to $4.9 billion, while net income declined by more than 8% to $1.4 billion.
Source: Barchart.com
The Bottom Line
Enbridge is eyeing expansion in South America, even as it continues fighting with the State of Michigan, which ordered the closure of a key pipeline. Pharmaceutical company Pfizer has received another boost after the U.K. approved its COVID-19 shot in children aged between 12 and 15. Bank of America is doubling down on trading and sales, as revenues from the division have grown. Tobacco company Altria’s dividend remains high, but it faces stagnating sales.
Be sure to check out Dividend.com’s News section for next week’s Market Wrap and other great dividend investing news.
