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.
NextEra Energy Partners, a publicly listed subsidiary of NextEra Energy, has taken the first position in the list due to its high dividend yield. Second, on the list is technology juggernaut IBM, which announced a recent dividend hike. Energy Transfer also unveiled a dividend increase, taking the third spot. Ford Motor Company placed last, with the company releasing better-than-expected results.
Don’t forget to read our previous edition of trends here.
NextEra Energy’s High Dividend
NextEra Energy Partners (NEP) has taken the first position in the list, with an increase in viewership of 81%. NextEra Energy, which is a publicly listed subsidiary of parent NextEra Energy Inc., has a dividend yield of nearly 12%, as the stock has been plummeting.
Late last year, the company issued a warning that it would not be able to grow its dividend by 12%-15% through 2026, largely due to high interest rates, which made the expansion of renewable energy assets less economical. Now the company expects annual growth of between 5% and 8%. As a result, the stock lost more than 60% of its value since peaking in 2022.
However, the stock has been on a recovery trajectory over the past six months, as demand for energy from the artificial intelligence revolution is only expected to increase.
Source: Barchart
IBM Increases Dividend
IBM (IBM) has placed second, with an advance in viewership of 61%. The storied technology company has raised its dividend for the 29th consecutive year, paying a quarterly $1.67 per share versus $1.65 previously. IBM’s dividend currently yields around 4%, compared with 1.4% for the average technology yield.
IBM shares have appreciated by a third in the past 12 months, as demand for its artificial intelligence services like consulting and cloud has skyrocketed. The company recently announced the acquisition of HashiCorp for $6.4 billion to improve its cloud-deployment automation services, especially related to the initial migration.
The news comes less than a year after IBM acquired Apptio, a cloud financial management tool, for about $4.6 billion. The company seeks to become a better competitor for hyperscalers like Amazon, Microsoft and Alphabet, which currently face huge antitrust obstacles in making their own acquisitions.
Source: Barchart
Energy Transfer Hikes Distribution Again
Energy Transfer (ET) has placed third in the list this fortnight, seeing traffic increase by 51%. Energy Transfer was in the news after the oil and gas pipeline operator hiked its quarterly cash distribution to shareholders by 3.3% to $1.27 annually, resulting in a dividend yield of nearly 8%.
Energy Transfer’s cash distribution is now higher than before the Covid-19 pandemic when plummeting demand for energy prompted the company to halve its payout. The company is now in the process of deleveraging its balance sheet, and it might soon start buying back its units, which could also lead to stock price appreciation.
Energy Transfer shares are up 15.7% year-to-date, but remain down about 53% since peaking in early 2015.
Source: Barchart
Ford Motor Co. Reports Strong Results
Ford Motor Co. (F) is last in the list, with an increase in traffic of 25%. The automaker has surprised analysts after the company said it will maintain its profit estimates for 2024 despite expecting losses from its electric vehicle segment.
The company said it will increase its focus on hybrids, which have seen strong demand as the hype around electric vehicles has fizzled. Ford shares are up 3% for the year and the company’s dividend yields nearly 5%.
Ford shares, however, remain down about 50% from their multi-year peak reached in 2022.
Source: Barchart
The Bottom Line
NextEra Energy Partners has suffered from high interest rates, but artificial intelligence demand could boost the stock. IBM increased its dividend, even as the company has been on an acquisition spree. Energy Transfer has increased its distribution to shareholders thanks to strong results. Finally, Ford Motor Co. has posted decent results thanks to strong demand for hybrid vehicles.
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