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.
Timberland real estate trust PotlachDeltic was the most popular ticker this fortnight as it has seen its stock perform poorly after the company announced a merger with peer CatchMark Timber. Semiconductor company Monolithic Power Systems is second in the list, as the firm reported a set of very strong results. Boyd Gaming is third, as the company announced an increase in its share repurchase authorization. Last in the list is Gold Fields, which generated interest, thanks to its merger with Yamana Gold.
Don’t forget to read our previous edition of trends here.
PotlatchDeltic
PotlatchDeltic (PCH) has taken the first position in the list this fortnight, seeing a rise in viewership of 1,000%. The company trended after it announced the acquisition of Atlanta-based peer CatchMark Timber Trust in an all-stock deal that valued the target’s common shares at a premium of 55% as of the close of business on May 27, 2022.
Given the dilution, investors were not thrilled about the merger. The stock has fallen more than 18% since the deal was announced, underperforming its benchmark iShares Global Timber & Forestry ETF, which fell around 14% during the same period.
The deal will add around 350,000 acres of timberlands in the South, increasing PotlatchDeltic’s South ownership to over 1.5 million acres. The company expects annual synergies of around $16 million, which will be available for distribution to shareholders. The transaction is expected to close in the second half of 2022.
PotlatchDeltic pays an annual dividend of $1.76 per share, equal to a yield of 3.87%. The company pays out just around 75% of its net income to shareholders.
Source: Barchart.com
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Monolithic Power Systems
Monolithic Power Systems (MPWR) has taken the second position in the list with an advance in traffic of 950%. Monolithic, which provides power circuits to industries like cloud computing and telecom infrastructures, has reported strong results for the quarter ended March 31.
Revenues have grown 48% to $377 million, while net income jumped by 75% to $79.5 million, thanks to strong demand for chips, including its power management solutions. Amid growing costs for electricity, Monolithic’s designs have been in high demand as they help improve the efficiency of the electric grid.
Despite the strong results, the stock has largely traded sideways in recent months and is down a third from a high reached in late 2021. Monolithic pays a dividend of $3, amounting to a yield of 0.72%. The company has been increasing its dividend for the past five years.
Source: Barchart.com
Boyd Gaming
Boyd Gaming (BYD) has taken the third spot in the list with a surge in viewership of 840%.
Paradise, Nevada-based casino operator Boyd Gaming has been in the news after the company announced a fresh $500 million share repurchase program. Boyd has around $361 million shares remaining from the current program and will continue purchasing shares at a rate of $100 million per quarter. Boyd also slightly increased its quarterly dividend from 14.4 cents to 15 cents per share.
The company paused dividend payments in 2021 as it needed to preserve cash to deal with an abrupt decline in foot traffic due to lockdowns.
Shares in Boyd Gaming have declined nearly 10% over the past five days, extending 12-month losses to 12.6%. The company’s results have continued to improve, with revenues and net income expanding in the first quarter of the year.
Source: Barchart.com
Gold Fields
Gold Fields (GFI) has seen its viewership advance by 556% over the past two weeks, taking the last position in the list.
South Africa-based miner Gold Fields trended after the company announced the acquisition of Canads-based gold, silver and copper mines operator Yamana Gold in an all-stock deal that will create the fourth-largest gold miner in the world. Gold Fields shares have declined by 25% since the deal was announced at the beginning of the month, as investors began to question whether the company paid too much. Redwheel, which owns nearly 3% of Gold Fields shares, called on the company to abandon the deal and instead focus on its own organic-growth options.
Yamana was valued at a 34% premium based on the stock prices of both companies just before the merger, which might have been too steep. Gold Fields shares are down by 45% since a peak reached in April, despite strong gold prices.
Gold Fields’s shares might look like a bargain, trading at a price-to-earnings ratio of just 10. The company also pays a dividend of 34 cents per share, equal to a yield of 3.7%.
Source: Barchart.com
The Bottom Line
PotlatchDeltic shares have declined, after it announced an all-stock deal to acquire peer CatchMark Timber. Monolithic Power has reported strong results, while Boyd Gaming increased its dividend and announced a fresh share repurchase program. Gold Fields stock plummeted after the company announced an acquisition that didn’t appeared to go well with investors and stock analysts.
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