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.
Mortgage real estate investment firm Annaly Capital Management has taken the first spot, as the company announced an unchanged dividend. Chip and software maker Broadcom placed second, as the stock declined following worse-than-expected financial results. Third in the list is JPMorgan Chase, which announced dividends for its preferred stocks. Last on the list is Leggett and Platt, which has increased its dividend despite posting weak financial results.
Don’t forget to read our previous edition of trends here.
Annaly Capital Announces Unchanged Dividend
Annaly Capital (NLY) has taken the first position in the list, as readers were attracted by the mortgage real estate investment trust’s high dividend yield. Annaly’s viewership jumped 55%.
Annaly, which owns mortgage-backed securities, has announced an unchanged quarterly dividend of 65 cents per share, payable on April 30 to shareholders of record on March 28. Annaly has had a mixed history of dividends, more often cutting the payouts than increasing them. Its stock reflects that uncertainty and is down more than 50% over the past five years.
The last time the company cut its dividend was in the first quarter of 2023, slashing it by 23 cents quarterly. History suggests that the high dividend of 65 cents is a rarity for Annaly and investors could potentially brace for a cut, especially given the high yield and uncertainty in the real estate market.
Source: barchart.com
Broadcom Shares Nosedive on Weaker-Than-Expected Results
Broadcom (AVGO) has taken second position in the list, with an advance in viewership of 30%. Shares in Broadcom have fallen about 12% after the company announced a set of results that disappointed analysts. The market was expecting stronger semiconductor sales, but they came in by about $300 million lower to $7.4 billion.
Demand for Broadcom’s artificial intelligence chips business has been stronger than expected, but softness in other segments like telecommunications has hit the overall semiconductor results. Broadcom is still on track to hit $50 billion in revenue for fiscal 2024. The company also expects demand for its AI networking chips to continue to grow this year and beyond.
Broadcom pays a dividend of $5.25 per share, resulting in a yield of 1.70%. However, Broadcom’s stock remains up more than 90% over the past 12 months.
Source: barchart.com
JPMorgan Chase Announces Dividends for Preferreds
JPMorgan Chase (JPM) has taken the third spot in the list with a rise in viewership of 27%. JPMorgan Chase shares have hit a record high after the company announced a strong set of results for 2023 and investor confidence in the stock has been steady.
The bank has comfortably outperformed its peers over the past 12 months, with the stock up more than 50% while competitors were up around half that. The bank announced dividend payments for a series of preferred shares. Its common stock dividend yields 2.17%, which is lower than the financial sector average. However, the stock price performance has more than compensated for the low yield.
Source: barchart.com
Leggett & Platt Raises Dividend
Leggett & Platt (LEG) has taken fourth position in the list, with an advance in viewership of 14%. Leggett & Platt, a bedding components maker, saw an increase in traffic after the company raised its dividend by 4.5% to 46 cents per share, despite announcing weak results and undergoing a restructuring of operations. By hiking the dividend, the company is keeping with the tradition of raising dividends for 53 consecutive years.
At the start of this year, Leggett & Platt announced a restructuring plan to drive efficiency and shift focus to its higher-valued content, in a move expected to generate additional up to $50 million in earnings before taxes and interest. As part of the plan, however, the company announced a $450 million impairment charge related to previous acquisitions in the bedding segment. As a result, the company reported a loss of $136 million for 2023.
Source: barchart.com
The Bottom Line
Annaly Capital has not changed its dividend, although it has a history of cutting payouts to shareholders. Broadcom stock has fallen after earnings came in lower than expected. JP Morgan Chase stock is trading at a record high, while Leggett & Platt raised its dividend despite announcing a restructuring effort.
Be sure to check out Dividend.com’s News section for the most trending news around income investing.
