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CNBC
14-07-2025
- Business
- CNBC
Dividend payouts could hit a record this year. These stocks are Wall Street's favorites
While dividend growth continued to slow in the second quarter, there is some encouraging news on what may lie ahead. The net change in dividends — the increases minus decreases — for domestic U.S. common stocks rose $7.4 billion in the second quarter of 2025, according to S & P Dow Jones Indices . That is significantly less than the $16 billion increase in the year-ago period and the $15.3 billion gain in the first quarter of this year, the firm found. Economic uncertainty may have had companies limiting the size of their dividend increases, but once policies become clear, they will be in a better position to adjust their business plans — which may include a higher commitment to dividends, said Howard Silverblatt, senior index analyst at S & P Dow Jones Indices. He anticipates the second half of 2025 could see stronger than historical averages for dividends. Help from banks "Q3 is expected to start out with an improvement from big banks as they continue to increase their dividends, helped by the Fed's recent positive stress test results ; the third quarter has the potential to set a new quarterly dividend payment record," Silverblatt said in a statement last week. "For 2025, the S & P 500 is expected to post a record payment, posting a 6% increase in dividend payments," he added. That is down from 8% anticipated before the year began and below the 6.4% increase in 2024. In 2023, dividends rose 5.1%, Silverblatt said. To be sure, dividends are not as favored as they once were and the yield on the S & P 500 is near all-time lows, Deutsche Bank said in a July 8 note. Instead, companies have turned to share buybacks, which overtook dividends in the mid-2000s as the primary way companies returned capital to shareholders, said Jim Reid, global head of macro and thematic research at Deutsche Bank. Buyback risk However, buybacks create more risk in the market, since they are discretionary, are often bought during market highs and may inflate corporate earnings, Reid explained. If a downturn hits, buybacks can stop much more quickly than dividends — and that can pull away a key pillar of market support, he said. "With dividend yields now approaching all-time lows, there's a case to be made that valuations and investor expectations have become stretched," Reid wrote. "In a crisis, the lack of durable income from dividends may matter more than markets currently appreciate." Still, there are some who think dividends will return to their former glory — or at least trend in that direction over time. Federated Hermes senior portfolio manager Daniel Peris, who wrote the book " The Ownership Dividend, " predicted on CNBC last year a major paradigm shift in the market as dividends come back in vogue. "Will we get back to the very, very high rate of companies that pay dividends as opposed to a much lower rate currently? Over time, yes," Peris said. In the meantime, for investors looking for dividends, there are still plenty of options available. Favorite dividend payers To find names that consistently grow their dividends and are favored by Wall Street, CNBC Pro screened for stocks in the Vanguard Dividend Appreciation ETF that are covered by at least 15 analysts and are rated buy by at least 55% of them, according to FactSet. The companies also have at least a $10 billion market cap and an upside to the average price target of 10% or more. Here are the names that made the cut. Bank of America has a dividend yield of 2.2% and 13% upside to the average price target. The Charlotte, N.C.-based money center bank recently raised its quarterly dividend by 8% to 28 cents, starting in the third quarter, after passing the Federal Reserve stress test, which measures banks' financial health in the event of an economic downturn. Bank of America is set to report second-quarter financial results on Wednesday. Shares have gained 7% year to date. BAC YTD mountain Bank of America year to date Coca-Cola is expected to release its latest results next week. In its last report in April, the soft drink maker beat analysts' expectations and largely reaffirmed its full-year outlook. Coke also called the effect of higher tariffs "manageable," but said it expects some short-term choppiness tied to trade conflicts. The stock is up 11.5% so far this year, has a 2.9% dividend yield and 13.5% upside to analysts' average price target. KO YTD mountain Coca-Cola year to date Procter & Gamble currently yields 2.7% and has 11.7% upside to the average price target. While the majority of analysts rate the stock a buy, there was one notable downgrade on Monday when Evercore ISI changed its rating to in line from outperform. The investment bank pointed to the loss of P & G market share on Amazon. . P & G hit a 52-week low on Monday and is down about 8% year to date. PG YTD mountain Procter & Gamble year to date
Yahoo
05-07-2025
- Business
- Yahoo
Why AppLovin Stock Slumped in June
Outside development put the hurt on the specialty tech company's shares. One, a highly critical report published by a short-seller, was especially hurtful. 10 stocks we like better than AppLovin › Last month, AppLovin (NASDAQ: APP) was punished by investors more for what it didn't do than for what it actually did. A hoped-for graduation to a top stock index was one of the non-occurrences, while a short-seller felt compelled to write a scathing report on the company. In some respects, AppLovin was fortunate that its stock didn't decline more deeply than the sub-11% dip it experienced across June. The index let-down, such as it was, occurred near the top of the month. Every quarter, S&P Dow Jones Indices, the operator of the closely followed S&P 500 index (among many others), likes to "rebalance" the index, replacing component stocks deemed no longer suitable with new ones. Several days ahead of the current rebalancing, speculation grew about which companies would land on the hallowed index. AppLovin was mentioned as one of those candidates, at least by a team of analysts at heavyweight lender Bank of America. The leading prospect, in their take, was online securities brokerage Robinhood Markets, but it also mentioned six other prospects. Among these was AppLovin. Alas, S&P Dow Jones Indices performed what felt like a head fake, electing not to change the composition of the S&P 500 index at all this time. The market can usually shrug off a non-event like this, disappointing as it may be initially. It's tougher to ignore a highly critical and detailed analysis of a stock, such as the ones typically published by institutional short-sellers. Unfortunately for AppLovin, that's exactly what happened when such a firm trained its sights on the company. In mid-June, the firm, Culper Research, unveiled a rather sprawling 30-page screed criticizing AppLovin's business practices. Many of its accusations pertained to AppLovin's goal of acquiring the non-Chinese operations of controversial social media video app TikTok, a service that has fallen afoul of the U.S. government. In the report, Culper intimated that a significant AppLovin shareholder, Hao Tang, is an individual with a shady past and "extensive direct and indirect ties" to certain dark corners of the Chinese government. It decried this "covert Chinese ownership," and warned of the danger posed to U.S. national security. AppLovin hasn't made any official statement on the Culper Research allegations. Perhaps, management feels they'll blow over with investors before long. Personally, I'd view that as a mistake since troubling allegations like the ones the short-seller raises have a way of lingering and, in turn, negatively affecting investor morale. We'll see whether the company can deliver news encouraging enough to dislodge the numerous accusations from the collective investor memory. Before you buy stock in AppLovin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AppLovin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Bank of America is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AppLovin and Bank of America. The Motley Fool has a disclosure policy. Why AppLovin Stock Slumped in June was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
09-06-2025
- Business
- CNBC
Robinhood shares drop after the online brokerage fails to get the nod to join the S&P 500
Robinhood shares sold off on Monday as the online brokerage was snubbed in the latest quarterly rebalance of the S&P 500 Index after months of speculation that it could earn a coveted spot in the benchmark. Shares of Robinhood dropped nearly 5% in premarket trading. The stock has rallied 3.3% Friday to bring last week's gain to over 13% before the S&P Dow Jones Indices said after the bell that the S&P 500 would remain last week, Bank of America called Robinhood a top candidate to join the S&P 500 during the big reshuffling in June. The S&P 500 rebalance, which typically comes on the third Friday of the last month in a quarter, is usually an impactful event as it can spark billions of dollars of trading and spur passive funds to snap up its shares. Companies being added to the index can generally expect funds like that to buy huge amounts of their shares in the coming weeks. Crypto exchange Coinbase was the latest beneficiary of such an inclusion. The stock skyrocketed 24% in the next trading session following the announcement last month. Still, Robinhood has had a major comeback this year so far with shares doubling in price. The online brokerage's shares hit a fresh record high last week amid a rebound in both stocks and crypto. The company had fallen out of favor after the GameStop trading mania of 2021 fizzled and the collapse of FTX triggered a sell-off in digital assets.
Yahoo
30-05-2025
- Business
- Yahoo
Grab These 3 Balanced Mutual Funds for Excellent Returns
Balanced funds offer investors the convenience of buying a single fund rather than holding both equity and bond funds. This category of funds also reduces a portfolio's volatility while providing higher returns than pure fixed-income investments. The fund managers also enjoy the flexibility of changing the proportion of equity and fixed-income investments in response to market conditions. An upswing may prompt them to hold a relatively higher share of equity to maximize gains, whereas a downturn will see them shifting loyalties toward fixed-income investments to stem losses. Below, we share with you three top-ranked balanced mutual funds, namely George Putnam Balanced Fund PGEOX, State Farm Balanced Fund STFBX and Dodge & Cox Balanced Fund DODBX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds. George Putnam Balanced Fund invests most of its net assets in a portfolio of bonds and common stocks. PGEOX advisors generally invest in common stocks of large-cap domestic companies with growth, value, or both characteristics. George Putnam Balanced Fund has three-year annualized returns of 8.9%. As of January 2024, PGEOX had 132 issues and 4.3% of its net assets invested in Microsoft. State Farm Balanced Fund invests most of its net assets in equity securities of preferably large and medium-cap companies. STFBX advisors consider large and medium-cap companies as defined by S&P Dow Jones Indices at the time of investment. State Farm Balanced Fund has three-year annualized returns of 7.4%. STFBX has an expense ratio of 0.14%. Dodge & Cox Balanced Fund seeks long-term growth capital appreciation along with current income by investing most of its net assets in a diversified portfolio of equity and debt securities in various proportions. DODBX advisors may also invest a small portion of their net assets in U.S. dollar-denominated equity or debt securities of foreign issuers traded in the United States but not part of the S&P 500 Index. Dodge & Cox Balanced Fund has three-year annualized returns of 8.3%. David C. Hoeft has been one of the fund managers of DODBX since January 2002. To view the Zacks Rank and the past performance of all balanced mutual funds, investors can click here to see the complete list of balanced mutual funds. Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> View All Zacks #1 Ranked Mutual Funds Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (DODBX): Fund Analysis Report Get Your Free (PGEOX): Fund Analysis Report Get Your Free (STFBX): Fund Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Cision Canada
23-05-2025
- Business
- Cision Canada
S&P Dow Jones Indices Announces Change to the S&P/TSX Canadian Dividend Aristocrats Index Français
TORONTO, May 23, 2025 /CNW/ - S&P Dow Jones Indices announces the following index change to the S&P/TSX Canadian Dividend Aristocrats Index as a result of the monthly dividend review. Change will be effective prior to the open of trading on Monday, June 2, 2025. For more information about S&P Dow Jones Indices, please visit ABOUT S&P DOW JONES INDICES S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500 ® and the Dow Jones Industrial Average ®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has become home to over 1,000,000 indices across the spectrum of asset classes that have helped define the way investors measure and trade the markets. S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit
