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.
Food processing company Archer-Daniels-Midland has taken the first position in the list after the company raised its dividend. Second in the list is United Parcel Service, which had a difficult last year amid tough negotiations with labor unions. Third in the list is REIT Omega Healthcare Investors, which has a high dividend yield. The list is closed by IBM, which had a terrific quarter.
Don’t forget to read our previous edition of trends here.
Archer-Daniels-Midland Hikes Dividend by 11%
Archer-Daniels-Midland (ADM) has taken the first position in the list with an advance in viewership of 136%. ADMs trended after it raised its dividend by 11% to 50 cents per quarter. This has resulted in a yield of 3.71%, compared with 1.9% for the consumer staples average.
The increase in dividend comes despite the launch of an investigation into the company’s accounting practices, which resulted in the delay of its fourth-quarter results and the withdrawal of the outlook for the animal nutrition segment, which brings about $3.8 billion in annual revenue and is one of the most profitable.
Shares in the company have dropped by about 25% following the news, extending 12-month losses to more than 35%.
The company is now running an internal investigation, but reassured investors that the outlook remains unchanged for the entire business, which is expecting to deliver $6.9 in adjusted earnings per share.
Source:Barchart
UPS Cuts Workforce as Company Performance Disappoints
United Parcel Service (UPS) has taken the second position in the list with an increase in viewership of 65%. UPS reported disappointing fourth-quarter results, capping a 2023 that CEO Carol Tomé described as “difficult and disappointing.” Earnings per share came in at $2.47 versus $2.46, but overall revenue of $24.92 billion was about $500 million lower than expected. Meanwhile, revenue declined about $2 billion compared to last year.
UPS said it was expecting to cut roughly 12,000 of mostly managerial jobs in an effort to cut $1 billion in costs. The news comes months after UPS reached a deal with Teamsters labor union to increase wages for both its full- and part-time workers.
Shares in UPS have declined ~26% over the past 12 months. UPS pays a dividend of $6.5 per share, resulting in a yield of 4.7%.
Source:Barchart
Omega Healthcare Investors Continue to Enjoy a Solid Yield
Omega Healthcare Investors (OHI) has taken the third position in the list with an advance in viewership of 59%. Omega Healthcare has attracted interest for its high dividend, which yields nearly 10% and seems solid.
While Omega has had a few problematic tenants like Guardian and Maplewood, its dividend is unlikely to be cut given that the rest of the portfolio is strong and rent coverage is improving. Omega, which owns and rents out skilled nursing facilities and assisted living facilities across most U.S. states and the U.K., generated about $242 million in revenue in the third quarter, up by ~$2.6 million.
Meanwhile, funds from operations (FFO), a highly watched metric by real estate investors, came in at 71 cents per share, about 6 cents lower compared to the previous year. Omega has been paying a quarterly dividend of 67 cents per share.
Source:Barchart
IBM Reports Solid Results, Thanks to AI Demand
International Business Machines (IBM) has taken the last spot, experiencing an increase in viewership of 54%.
IBM has had a strong 2023, with revenues growing 5.5%, after years of declines. The change of fortune was largely due to growing demand for artificial intelligence and solid growth in its mainframe business. For instance, the AI consulting and software business was double in the fourth quarter of what it was just a quarter ago, although still in the hundreds of millions.
Shares in IBM are up 14% so far this year, as investors cheered the company’s growing AI business. The stock remains down about 9% from its record high reached in 2013. IBM pays a quarterly dividend of $1.66 per share and has been increasing it for the past 28 years. The dividend currently yields 3.6%. Given the strong results, it’s highly likely the company will increase its dividend this year as well.
Source:Barchart
The Bottom Line
Archer-Daniels-Midland has increased its dividend by 11%, but the stock faces uncertainty due to accounting irregularities. UPS had a disappointing year and was forced to cut 12,000 managerial jobs as it increased pay for drivers. Omega Healthcare has a solid dividend yield, despite having some troubled tenants. Last in the list is IBM, which had a strong year, thanks to growing demand for artificial intelligence software and consulting.
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