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.
Chipmaker Nvidia topped the list this week after reporting another stellar quarter fueled by continued strong demand for its GPU chips. Second in the list is McDonald’s, which has reported weakening results. Third is NextEra Energy, with its stock advancing strongly in recent months. The list is closed by Bristol Myers Squibb, whose share price decline has led to a higher dividend yield.
Don’t forget to read our previous edition of trends here.
Nvidia Reports Blowout Earnings
Nvidia (NVDA) claimed the top spot, with viewership up 178%. The company reported another blowout quarter, with revenues surging 262% quarter-over-quarter and net income up 630%.
The results stem from strong demand for Nvidia’s GPU chips, used for AI workloads. Enterprises are rushing to experiment with generative AI, triggering demand for cloud services and data centers. Companies like Microsoft, Alphabet, and Meta Platforms have announced plans to increase capital expenditures, heavily investing in AI chips.
Nvidia, dominating the AI chip market, has seen demand skyrocket, with its business more than tripling in just a year. Nvidia’s stock has surged nearly 200% in the past 12 months. Although the company has raised its dividend by 150%, the yield remains small, with shareholders benefiting mainly from robust stock performance.
Source: barchart
McDonald’s Launches $5 Meal After Weak Results
McDonald’s (MCD) has taken first position in the list with an advance in traffic of 34%.
With a dividend yield of 2.6%, MCD saw revenues decline sequentially in the March quarter. CEO Chris Kempczinski has argued it was because value-oriented consumers were more likely to dine at home. Revenues were up nearly 4.6% year-over-year, but they’ve been declining for three straight quarters. Net income was up 7% at $1.9 billion.
To combat weakening foot traffic, McDonald’s said it plans to launch a $5 meal, which would include a McChicken or McDouble, four-piece chicken nuggets, fries and a drink. However, the move has already received pushback from franchisees, who said the promotion was unsustainable over the long term if the company does not contribute financially.
NextEra Stock on a Tear
NextEra Energy (NEE) has taken third position in the list, with a small advance in traffic of 7%.
The energy company – with a big focus on renewables – has seen its stock increase 30% so far this year, partly due to stronger-than-expected demand from new data centers that are built by cloud service providers to run energy-intensive artificial intelligence workloads.
Earlier this year, NextEra increased its quarterly dividend by 10% to 51.5 cents per share. The dividend now yields about 2.6%. The increase is part of a plan to generate 10% increases in the annual dividend through at least 2026.
Source: barchart
Bristol Myers Squibb Stock Shows Signs of Recovery
Bristol Myers Squibb (BMY) is last in the list, seeing its viewership increase about 5%. Bristol Myers may have started to see the light at the end of the tunnel, as the stock started to recover following more than a year of declines.
Bristol Myers managed to post a revenue increase in the latest quarter, as a result of stronger sales of some new therapies. The stock remains down nearly 50% from its peak, however, as investors want to see more traction for its new drugs before taking the plunge on the stock.
The stock’s decline has led to nearly doubling the company’s dividend yield, which is at ~5.9%. The dividend is unlikely to be cut.
Source: barchart
The Bottom Line
Nvidia stock continues to rise after it reported another blowout quarter. McDonald’s launches cheap meals to attract low-income consumers hit by the cost-of-living crisis. NextEra stock is on a tear as the company expects to benefit from rising energy demand. Last in the list is Bristol Myers Squibb, which has managed to post growth after strong sales off some new drugs.
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