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.
Goldman Sachs has taken first place in the list after the company raised its dividend on the back of strong earnings. Second on the list is Nike, which has been in trouble lately with its stock price falling to COVID-19 lows. Third on the list is Enterprise Products Partners, which announced a higher dividend. To close the list, Medical Properties Trust is last amid continued troubles with tenants.
Don’t forget to read our previous edition of trends here.
Goldman Sachs Hikes Dividend After Strong Earnings
Goldman Sachs (GS) has taken the first position in the list with an advance in viewership of 524%. The strong viewership numbers are not coincidental. The investment bank recently increased its dividend by 10% from $2.50 per share to $2.75. The increase comes on top of the $30 billion in share repurchases it announced earlier.
Goldman’s second quarter was extremely strong, with profits rising about 150% to $3 billion. This was due to a pickup in dealmaking activity after two years of weak growth. Revenue was up 17% to $12.7 billion, surpassing analysts’ expectations of $12.4 billion.
Shares in Goldman Sachs have jumped by more than 25% so far this year. On top of this return, the bank’s dividend yields 2.2%.
Goldman’s fortunes are very much tied to the M&A market. When there is a recovery in M&A activity, like now, then the bank benefits. When the M&A market is down, the bank’s earnings fall. Goldman believes the M&A market is just starting to recover, and it will continue to benefit well into 2025.
Source: Barchart
Nike Stock Falls After Horrible Guidance
Nike (NKE) has taken the second position in the list, seeing its viewership increase 126%. The footwear company is going through one of the roughest periods in its history, with the stock down around 60% since reaching a peak in late 2021.
The company has seen its sales go up less than 1% in fiscal 2024, and it said it expects sales declines this year. The weak guidance has taken investors by surprise, prompting a selloff in the stock, down 26% over the past 30 days.
Despite the decline, the stock still needs to appear more cheap, trading at a price-to-earnings ratio of 19. Of course, if sales can recover and CEO John Donahoe can bring the brand’s mojo back, then this could be a good entry point. Nike has recovered from similar situations.
Source: Barchart
Enterprise Products Partners Announces Higher Distributions
Enterprise Products Partners (EPD) has taken the third position in the list with a surge in viewership of 30%. Enterprise Products, a midstream natural gas, and crude oil pipeline operator, has a high dividend yield of more than 7% and has been attracting readers in recent months.
Enterprise further increased its payout to shareholders, announcing a quarterly dividend of 52.5 cents per share, up from 51.5 cents previously. The stock is also up more than 11% year-to-date.
The company can afford to pay a higher dividend, given that it generated about $8.2 billion in adjusted cash flow and paid out only half that to shareholders.
Source: Barchart
Medical Properties Trust Still Struggling
Medical Properties Trust (MPW) is last in the list with an advance in viewership of 30%, equal to Enterprise Products Partners.
The stock has been on a rollercoaster as the REIT is dealing with tenants not being able to make payments. Steward Health Care said it will not be able to meet its rental payments even after selling off some businesses.
Medical Properties is now looking to find new tenants. If it is successful, it means the current stock price represents a good entry opportunity, especially considering the dividend yield of 12.6%. Medical properties already cut its dividend in half last year.
Source: Barchart
The Bottom Line
Goldman Sachs has raised its dividend after it posted strong earnings as a result of a recovery in the M&A market, where the bank is one of the top advisers. Nike is going quickly out of fashion, but the stock might represent a good buying opportunity. Enterprise Products raised its dividend again, while Medical Properties is still battling tenant issues.
Be sure to check out Dividend.com’s News section for the most trending news around income investing.
