Every week, Dividend.com analyzes the search patterns of our visitors and by sharing these trends with our readers, we hope to provide them with insight into what the financial industry is interested in and how they are positioning their portfolios.
Semiconductor and software company Broadcom topped this week’s list after reporting better-than-expected earnings due to demand for artificial intelligence. In second place was UnitedHealth Group, which reported strong results despite a cyberattack on its subsidiary Change Healthcare. In third place was Main Street Capital, which announced an increase in its dividend. Finally, beverage company PepsiCo reported better-than-expected results thanks to price hikes.
Be sure to read our previous trending article here.
Broadcom reports better-than-expected profits
Chip Manufacturer Broadcom (AVGO) took the top spot on this week’s list, with viewership up 118%. The company reported better-than-expected results, with both revenue and earnings per share surpassing expectations. The company now expects fiscal 2024 revenue of $51 billion, up from its previous guidance of about $50.4 billion.
Broadcom is benefiting from strong demand from artificial intelligence applications. The company makes networking chips used for AI workloads. alphabet The company said about a quarter of its $12.5 billion in revenue came from AI demand.
These results have sent shares soaring nearly 30% as investors expect the company to continue to benefit from robust enterprise demand for AI. The company offers a healthy 1.2% dividend yield, but investors are reaping more of the rewards through a rising stock price. Broadcom is fast approaching the trillion-dollar club.
UnitedHealth Group reports strong results despite cyberattack
UnitedHealth Group (United Nations University) rose to second place this week with a 61% increase in traffic.
Health insurer UnitedHealth said its revenue rose by $8 billion to nearly $100 billion in the first quarter of 2024. The company said its earnings per share would be affected because its subsidiary, Change Healthcare, was hit by a cyberattack and it had to pay compensation to doctors who couldn’t use the system to fill prescriptions.
But adjusted earnings per share came in at $6.91, well above the $6.61 analysts had expected. The adjusted figure excludes some of the impact of the sale of the company’s Brazilian unit and the cyberattack.
As a result of these strong results, UnitedHealth Group is increasing its quarterly dividend to $2.10 per share from $1.88, payable on June 25 to shareholders of record as of June 17.
Main Street Increases Dividend
Main Street Capital (Major) ranked third on the list with a 34% increase in viewership. MainStreet has been making headlines after increasing its regular dividend to shareholders and then announcing an additional dividend. In the third quarter, MainStreet raised its dividend to 73.5 cents per share, up 2.1% from the previous quarter.
The business development company also announced an additional dividend of 30 cents per share, bringing the total dividends the company has paid since going public in 2007 to about $41.59 per share, nearly three times what it had originally expected. Initial public offering The stock is currently trading at around $49.75 and is up 14% since the beginning of the year.
Main Street’s dividend yield is around 6%.
PepsiCo’s performance improves with price hikes
PepsiCo (Pep) came in last with a 25% increase in viewership.
PepsiCo shares have been struggling despite the beverage and snack giant reporting strong results this year. First-quarter revenue rose to $2.04 billion from $1.93 billion a year ago, but the performance was driven mostly by a 5% price increase and sales volume fell 2%.
Investors will be watching to see whether sales volumes continue to decline or stabilize in the next quarter. Higher volumes would likely translate into a higher stock price, which is down 3.7% so far this year compared with a 15.7% increase for the S&P 500 Index.
Conclusion
Broadcom Inc. reported strong results, buoyed by robust demand for artificial intelligence. UnitedHealth Group Inc. increased its dividend after better-than-expected results despite being hit by a cyberattack. Business development company MainStreet Inc. also increased its dividend. Finally, PepsiCo Inc. posted strong results as prices rose amid falling volumes, which has investors worried.
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