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.
Semiconductor and software company Broadcom has taken first position in the list this week, after it reported a revenue beat thanks to artificial intelligence-related demand. Second in the list is UnitedHealth Group, which also reported strong results despite a cyberattack on its Change Healthcare subsidiary. Third in the list is Main Street Capital, which announced higher dividend payments. Last in the list is beverage company PepsiCo, which delivered better-than-expected results thanks to price increases.
Don’t forget to read our previous edition of trends here.
Broadcom Beats on Earnings
Chipmaker Broadcom (AVGO) has taken the top spot in the list this week, enjoying an advance in viewership of 118%. The company has reported strong results, with both revenues and earnings per share beating estimates. The company expects sales of $51 billion in the fiscal 2024 year, higher than its previous estimate of around $50.4 billion.
Broadcom has benefitted from strong demand driven by artificial intelligence applications. The company makes networking chips that are used for AI workloads and it also works with Alphabet to produce its proprietary chips. The company said that about a quarter of the $12.5 billion in sales could be attributed to AI demand.
Following these results, shares have risen nearly 30%, as investors expect the company to continue to benefit from solid AI demand from corporations. The company’s dividend yields a healthy 1.2%, but investors are rewarded more via share price appreciation. Broadcom is quickly approaching the $1 trillion club.
Source: Barchart
UnitedHealth Group Posts Solid Results Despite Cyberattack
UnitedHealth Group (UNH) claimed the second spot this week, seeing an increase in traffic of 61%.
UnitedHealth, a health insurance company, has said its revenue grew by $8 billion in the first quarter of 2024 to nearly $100 billion. The company faced a cyber attack at its subsidiary Change Healthcare, which it said will have an impact on its earnings per share as the company made disbursements to affected doctors who were unable to use its systems to make prescriptions.
Adjusted earnings per share of $6.91, however, were well in advance of analysts’ expectations of $6.61. The adjusted figures exclude the sale of the Brazil unit as well as some cyber attack effects.
Following these strong results, UnitedHealth Group increased its dividend from a quarterly $1.88 per share to $2.10, to be paid out on June 25 to shareholders of record as of June 17.
Source: Barchart
Main Street Raises Dividend
Main Street Capital (MAIN) is third in the list with an increase in viewership of 34%. Main Street has been in the news after it increased its regular dividend to shareholders and then announced supplemental dividends. For the third quarter, Main Street raised its dividend by 2.1% to 73.5 cents per share quarter-over-quarter.
In addition, the business development company announced a supplemental dividend of 30 cents per share. The total dividends paid by the company since its initial public offering in 2007 now stand at about $41.59 per share, nearly three times more than the IPO price. The stock now trades at about $49.75, up 14% year-to-date.
Main Street’s dividend yields about 6%.
Source: Barchart
PepsiCo’s Results Bolstered by Price Hikes
PepsiCo (PEP) has taken the last position, with a jump in viewership of 25%.
PepsiCo shares have underperformed this year, despite the beverage and snack giant reporting solid results. Revenue for the first quarter rose to $2.04 billion from $1.93 billion in the same period last year. However, the results were largely driven by a price hike of 5%. Sales volumes declined 2%.
In the next quarters, investors will be watching whether volumes continue to slip or stabilize. An increase in sales volume would likely lead to an upward movement of the stock price. Shares are down 3.7% year-to-date, compared with a gain of 15.7% for the S&P 500 Index.
Source: Barchart
The Bottom Line
Broadcom has reported strong results bolstered by solid demand from artificial intelligence. UnitedHealth Group raised its dividend following better-than-expected results that were impacted by a cyberattack. Business development company Main Street raised its dividend. Finally, PepsiCo has delivered strong results driven by price rises, as volumes slipped, something that worries investors.
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