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.
Torm has taken the first position in the list as the company’s solid dividend and strong results attracted investors. Duke Energy is second, as the company sees strong earnings performance and booming demand coming from data centers. Arbor Realty is third, as the dividend-rich real estate company has been hit by allegations of fraud by a short seller. Last in the list is 3M, which recently cut its dividend.
Don’t forget to read our previous edition of trends here.
Torm’s High Dividend Attracts Investors
Danish shipping company Torm (TRMD) has taken the first position in the list, seeing its viewership advance 69%. The company has seen its stock rise 17% over the past month to reach a record, following strong earnings results.
Torm said revenue grew by 14% to $444 million, while net income surged more than 36% to $210 million. The strong results were partly due to strong tanker rates, including higher demand for distance shipping. Given the sanctions on Russia and trouble in the Middle East, carriers have taken longer routes to avoid the Red Sea.
In addition to the strong stock performance, the company has been rewarding shareholders with a strong dividend yield of more than 16%. Torm shares trade at a dirt-cheap price-to-earnings ratio of about 4.8, which is largely due to volatility in the spot rates.
Source: Barchart
Duke Energy Maintains Dividend Intact
Duke Energy (DUK) has taken the second position in the list with an increase in traffic of 56%. Duke, a power utility company, has announced an unchanged dividend of $1.025 per share. However, the company typically increases its dividend in November, and it could very well do so this year as well. Last November, it hiked its payout by 20 cents per share.
Duke has seen its stock appreciate by 6% this year, as the company’s results continued to improve. For the latest quarter, Duke’s revenue grew by 5.4% year-over-year, while net income rose by 41.5% to $1.14 billion.
Duke is seeing strong upcoming growth for energy from data centers that power artificial intelligence workloads, with the company’s CEO recently saying in a Bloomberg interview that more natural gas plants are needed to meet that demand.
Source: Barchart
Arbor Realty Hit By Short Seller Fraud Allegations
Arbor Realty (ABR) has taken the third position in the list, seeing its viewership advance 42%.
Arbor, which pays a solid dividend yielding 12.4%, has been in the news after short seller Viceroy Research published a short report, claiming the company overstated the value of its assets. Specifically, Viceroy said Arbor moved some foreclosed properties to an off-balance-sheet firm, helping it avoid writing down the value of some loans.
The stock declined about 5% on the day of the report, but later recovered all of the losses, after the company said it stood by its financials and it did not commit any fraud.
Source: Barchart
3M Cuts Dividend
Industrials company 3M (MMM) has taken the last place in the list, seeing a rise in traffic of 33%. 3M was in the news after it slashed its quarterly dividend from $1.51 per share to 70 cents. 3M had raised its dividend for 64 years, and given the cut, it is now likely to be removed from the S&P 500 Dividend Aristocrat Index.
The move was expected, as the company telegraphed the cut. 3M recently separated its healthcare business Solventum, as the company is looking to restructure amid slow growth and legal liabilities amounting to more than $12 billion over the coming decade.
The stock is up more than 14% year-to-date, as investors see the moves the company is making as positive. However, shares are down more than 50% since peaking in 2018.
Source: Barchart
The Bottom Line
Torm has reported strong earnings as a result of rising spot rates. Duke Energy reported an unchanged dividend, but its future looks bright thanks to strong expected demand from data centers. Arbor Realty has been hit by short seller allegations that it had overstated the value of its assets, although the stock has not suffered much. Finally, 3M cut its dividend, as the company’s growth has stalled amid legal challenges.
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