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.
Walmart Stores has placed first in the list, as the company’s bumper earnings triggered a stock rally. Second in the list is Home Depot, whose shares performed well despite soft guidance. Third in the list is Medical Properties Trust, which saw its stock rally on progress for an asset sale plan. Last in the list is chipmaker Nvidia, which reported blowout earnings thanks to strong demand for its AI chips.
Don’t forget to read our previous edition of trends here.
Walmart Stock Surges to Record High
Walmart Stores (WMT) has taken the first position in the list with an increase in viewership of 74%. The retail company’s stock is currently trading at a record high after it reported strong results.
Fourth-quarter global sales increased by 5.7% compared to the same period last year to more than $174 billion. Meanwhile, global online sales were up 23%, indicating strong progress in the company’s transition to an online business model. Overall net income declined 12.5%, with the net profit margin down 17% to 3.2%. The stock has rallied this year, up 11.7%, extending 12-month gains to 26%.
Walmart also increased its dividend by 9% to $2.49 per share. It also announced a 3-to-1 stock split, which means its annual dividend will be 83 cents. Walmart’s dividend yields 2.4%.
Source: Barchart
Home Depot Ups Dividend Despite Sluggish Results
Home Depot (HD) has taken the second position in the list, seeing an advance in traffic of 67%. Home Depot’s results have been softening lately as consumers have continued to defer purchasing big-ticket discretionary items. Home Depot already had too much inventory from last year and this continued to weigh on results.
Home Depot’s comparable sales for the fourth quarter declined 2.9% to $34.8 billion, while net income was down nearly 17% to $2.8 billion. For the full year, sales declined 3%, while earnings fell 11.5%.
During COVID-19 times, a lot of demand for home improvement products was pulled forward, with some inventories now in need to be digested. However, demand is likely to recover in the coming years, which will benefit Home Depot.
Despite the weak results, Home Depot increased its dividend by 7.7% to $2.25 per share. The dividend currently yields 2.4%.
Source: Barchart
Medical Properties Trust Surges After Selling Assets
Medical Properties Trust(MPW) has placed third, with an advance in viewership of 61%. Medical Properties has seen its stock surge more than 30% in February, after the company soothed concerns that it might have liquidity issues.
The trouble emerged in January, when the REIT said its top tenant Steward Health Care was having liquidity problems and was not able to resume full rental payments. However, the company reported in February that it shored up its liquidity by selling five hospitals to Prime Healthcare and a syndicated loan investment. The company now has $480 million in cash and might not be forced to cut its dividend.
Medical Properties Trust’s dividend currently yields an impressive 13.7%.
Source: Barchart
Nvidia Stock Continues to Rise on Strong AI Demand
Nvidia (NVDA) has placed last with an advance in viewership of 58%. The company’s stock has been rising incessantly since it beat expectations for fourth quarter results and provided strong guidance for the next quarter and beyond at least into 2025. Nvidia’s fourth quarter revenue increased by 265% to $22.1 billion, while net income surged 768% to $12.3 billion.
The company has benefitted from strong demand for its GPU chips, which power artificial intelligence (AI) workloads. The unprecedented growth in sales has helped Nvidia surpass $2 trillion in market capitalization. The stock has appreciated by 260% in the past 12 months.
Nvidia’s dividend currently yields just 0.02%, but the company might increase its payout given the strong cash generation.
Source: Barchart
The Bottom Line
Walmart shares have continued to appreciate thanks to strong sales. Home Depot has raised its dividend, despite soft results and guidance. Medical Properties Trust’s stock surged after the company has made good progress in selling assets to shore up liquidity. Nvidia’s stock has been surging after the company announced strong results.
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