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.
Chipmaker Broadcom has taken the first position in the list after reporting strong results thanks to rising demand for its products across all business lines. Rithm Capital is second after the real estate investment trust (REIT) formerly known as New Residential Investment rebranded and changed its ticker on the New York Stock Exchange. Kimberly Clark, a consumer company making paper products and medical instruments, is third. The list is closed by another REIT, namely Orchid Island Capital.
Don’t forget to read our previous edition of trends here.
Broadcom Limited
Chipmaker Broadcom (AVGO) has taken first place in the list with an advance in viewership of 41%.
The company has reported strong results for the fiscal third quarter and guided on better performance in the next quarter. Adjusted earnings per share came in at $9.73, beating expectations. Meanwhile, revenues of $8.46 billion were higher than estimates of $8.41 billion.
For the fiscal fourth quarter, the company expects revenues of $8.9 billion compared with analysts’ forecast of around $8.77 billion. CEO Hock Tan said the solid results were boosted by strong demand from cloud, service providers, and enterprise. The chipmaking unit generated $6.6 billion while the software unit brought in $1.8 billion.
The company pays a dividend of $4.10 per share, which it increased from $3.60 last year. The stock yields 3.11% compared with 1.37% for the average of the technology sector. In addition to the high dividend, the company rewarded shareholders by repurchasing $1.5 billion of shares during the quarter. Broadcom shares are up 5% over the past five days, although they remain down 20% for the year.
Source: Barchart.com
Rithm Capital
Rithm Capital (RITM) has placed second this fortnight with a rise in viewership of 38%. The real estate company, formerly known as New Residential Investment, changed its name and ticker, and rang the bell on the New York Stock Exchange on August 10.
In addition to operating a portfolio of residential mortgages, the company owns firms that do mortgage servicing, title insurance services, and appraisal management services, among other things.
The company pays a bumper dividend of $1 per annum, resulting in a yield of nearly 11%. Its stock has declined more than 14% over the past 12 months, and still trades 46% lower than before the pandemic. Since reaching pandemic lows in September 2020, the shares have surged 183%. The company’s quarterly revenues have continued to go up over the past five quarters, but investors remain skeptical of the company’s long-term prospects.
Source: Barchart.com
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Kimberly Clark
Kimberly Clark (KMB) is third on the list with a jump in viewership of 30%.
Kimberly Clark, which makes paper-based consumer products like paper towels and nappies, is a strong dividend stock that increased its dividend for 50 consecutive years. The stock has moved sideways over the past 12 months and five years, as the company’s revenues stagnated and profits declined.
The company is now putting its hopes on a turnaround process revolving around cost cuts and higher supply chain productivity to increase profits. Revenues have increased in each of the past five quarters, although net income was more volatile.
Kimberly Clark’s dividend yields 3.66% per year, which is higher than the consumer staples average of 1.89%.
Source: Barchart.com
Orchid Island Capital
Orchid Island Capital (ORC) has seen traffic jump 21% over the past fortnight, taking the last place in the list.
Orchid Island trended as it yields a stunning dividend of 15.4%, which might not be sustainable given that the company has been losing money at a fast clip over the past five quarters. The company has blamed the poor results on deteriorating conditions in the market, with high inflation and rising interest rates affecting housing. The company invests in Agency residential mortgage-backed securities (RMBS), and it saw the value of these fall recently, resulting in book value erosion.
If the economy slows in the coming quarters, Orchid predicted outperformance for Agency RMBS given the currently wide spreads.
Because of the poor stock price performance, the company was forced to execute a reverse stock split last month. Over the past 12 months, shares have fallen nearly 50%.
Source: Barchart.com
The Bottom Line
Broadcom has reported strong results thanks to high demand for chips and software. Rithm Capital’s dividend has a strong yield as the stock has not yet recovered to pre-pandemic levels. Kimberly Clark is hoping cost cuts and supply chain efficiencies will boost profitability. Orchid Island executed a reverse stock split as the company’s stock suffered due to poor investing performance.
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