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.
Pharmaceutical giant Pfizer has taken first position on the list as it faces pressure from an activist investor to improve its deteriorating results. Second on the list is Energy Transfer, which has been attracting investor interest thanks to its stable and high dividend. Third is Verizon, which reports earnings. Lastly, the list is closed by Procter & Gamble, which recently reported weaker revenue than expected.
Don’t forget to read our previous edition of trends here.
Pfizer Locks Horns With Activist
Pfizer (PFE) has placed first this week, seeing its viewership advance 25%.
Pfizer has, in recent years, experienced a swift change of fortunes. The company helped distribute the first-ever Covid-19 vaccine and its sales surged along with the stock price. However, after demand for the vaccine tapered off over the past two years, Pfizer’s revenue has declined.
As a result, it now faces activist investor Starboard Value, which is reportedly unhappy with the company’s stock price performance, down 50% since peaking in late 2022. The activist believes the poor performance was due to a string of ill-advised expensive acquisitions that have failed to boost the company’s top and bottom lines.
Starboard initially had the support of two former Pfizer executives, but then the duo reversed course, saying they now support current CEO Albert Bourla.
Pfizer’s dividend yields an impressive 5.8%, although it might be at risk if results continue to deteriorate.
Source: Barchart
Energy Transfer’s Dividend Yield Attractive
Oil and gas pipeline Energy Transfer (ET ) has taken second position with an increase in viewership of 14%. The key reason why the stock has been trending is the company’s strong dividend. Energy Transfer pays an annual dividend of $1.28 per share, which is equal to a yield of 7.80%.
In addition to the strong dividend, Energy Transfer has rewarded shareholders with a gradually rising stock price. The company’s shares are up 243% since reaching a multi-year low during the Covid-19 pandemic, when demand for oil and gas collapsed.
Energy Transfer’s results have stabilized over the past few years and quarters following the Covid-19 pandemic. In the quarter ended June 2024, revenues grew 13% to $20.7 billion, while net income was up 44% to $1.31 billion.
Source: Barchart
Verizon Results Disappoint Investors
Verizon Communications (VZ) has taken third place on the list with a rise in viewership of 13%.
Verizon reported flat revenue growth, as its wireless equipment division saw revenue decline more than 8%, even as the consumer wireless service business and the broadband business reported small growth. Revenue of $33.3 billion was about $100 million below estimates.
As a result, Verizon shares fell nearly 5% on Tuesday, when the company issued the results. Verizon stock remains up more than 32% over the past 12 months. Its dividend yield stands at an impressive 6.5%, which brings total shareholder returns to more than 38%.
Source: Barchart
Procter & Gamble Reports Weak Results
Procter & Gamble (PG) has placed fourth with an increase in viewership of 13%, equal to Verizon. Procter & Gamble has reported weak results for the first fiscal quarter, with revenue of $21.7 billion, lower than analyst expectations of $21.9 billion.
The weak results were mostly due to collapsing demand in China, which has been grappling with a housing crisis that prompted shoppers to pull back spending. Sales in China declined 15%, the company said. Procter & Gamble believes headwinds from China are likely to persist for the next few quarters.
Source: Barchart
The Bottom Line
Pfizer is fighting with activist investor Starboard Value, which wants to gain seats on the board as it is unhappy with the company’s performance and M&A strategy. Energy Transfer has been gradually improving its stock price performance and paying an attractive dividend yield. Verizon’s results have disappointed, although the company’s stock has performed well over the past 12 months. Finally, Procter & Gamble also reported weak results due to diminished demand in China.
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