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.
Apple has taken the first spot this week, as the company again reported falling sales. Second and third in the list are two high dividend stocks which also seem to be in good financial standing, namely Energy Transfer and Arbor Realty Trust. The list is closed by American Capital Agency, another high-yield agency mortgage-backed security provider.
Don’t forget to read our previous edition of trends here.
Apple Sales Disappoint Again
Apple (AAPL) has taken the first position in the list this week, with a surge in viewership of 68%. The iPhone maker was in the news after it reported that its sales fell for the third straight quarter. The company said revenue declined 1% to $81.8 billion in the July 1 quarter, largely due to falling iPhone, iPad and Mac sales. However, revenues from its services division edged up – the only bright spot.
The company’s shares have declined nearly 9% over the past week, largely due to the weak results. But the company still trades at a price-to-earnings ratio of 30, which now might seem on the expensive side given revenue declined for three straight quarters. The dividend yields just 0.5%.
Growth does not seem to be forthcoming. Apple’s augmented reality device is impressive but unlikely to experience strong demand given its high price point. Meanwhile, the iPhone 15 is rumored to be released in September but some models are reportedly facing shortages, which could also hit sales.
Energy Transfer Reports Weak Results
Energy Transfer (ET) has placed second in the list, with an advance in traffic of about 29%. Energy Transfer, an oil and gas pipeline company, has reported weakening results. Distributable cash flow was $1.55 billion in the quarter compared with $1.9 billion during the same period last year.. At the same time, second quarter EBITDA came in about $100 million lower at $3.12 billion.
Energy Transfer announced plans to invest $1.25 billion in a natural liquid gas (NLG) export capacity in Texas. It forecasts the investment will increase export capacity by 250,000 barrels per day. Energy Transfer stock fell on the news, but it remains up about 10% for the year. The stock still seems cheap, trading at a price-to-earnings ratio of 10 and having a dividend that yields 9.6%.
Arbor Realty Trust Hikes Dividend
Arbor Realty Trust (ABR) has seen its viewership edge up by 21%, taking the third spot in the list.
Arbor Realty, which provides debt capital for multifamily loan and commercial real estate industries, has raised its dividend by 2%, after it reported solid results. Distributable earnings per share of 57 cents are well higher than the company’s dividend. As a result, it increased its dividend by 1 cent to 43 cents per share.
Arbor’s dividend yields a solid 10.3%, with its stock up 60% since April. Although the real estate environment is challenging given high interest rates, the company remains on strong footing.
American Capital Agency Reports Results
American Capital Agency (AGNC) has taken the fourth spot in the list with an advance in traffic of 18%. American Capital, which invests in agency mortgage-backed security (MBS), has reported slightly worse results for the latest quarter, although the company is still in good shape. Tangible net book value per share declined from $9.41 per share to $9.39, which is lower than the stock price.
American Capital yields an impressive dividend of 14.4%, and it does not seem to be at risk. The company’s shares have been on a steady decline since 2013, when it reached a peak. The stock is down more than 4% since the start of the year.
American Capital CEO sounded optimistic, saying in the latest quarter that asset valuations are attractive, funding markets strong and the Fed’s tightening campaign over.
The Bottom Line
Apple has reported a third straight quarter of sales declines, with investors bidding the stock down as a result. Energy Transfer results continued to deteriorate. Arbor Realty increased its dividend by 2% as it reported high distributable cash flow. American Capital’s tangible net book value continued to deteriorate along with the stock price, but the CEO remains upbeat.
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