US dividend payments accelerated in Q2

VaselineSeptember 12, 2024

0 2 minutes read

US dividend payments rose 8.6% to $161.5 billion in April-June with Alphabet (GOOGL) and Meta platforms (META) make significant contributions by paying early dividends, according to a study by the Janus Henderson Global Dividend Index.

Globally, dividends rose 8.2 percent on an underlying basis to an all-time high of $606.1 billion in Q2, Janus Henderson said. Basic growth adjusts for a shorter period special dividends and other minor factors.

“More than nine in 10 (92%) companies globally raised or held dividends flat during the quarter, as a third of sectors saw double-digit growth and only three sectors saw dividend declines,” it said in the report.

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After the strong quarter, Janus Henderson upgraded its 2024 dividend forecast, now expecting global dividends to reach $1.74 trillion, up 6.4% from 2023 on an underlying basis.

First dividend payments by Alphabet and Google contributed 3.6 percentage points to U.S. dividend growth in the quarter, more than making up for the few companies that cut their dividends. that 3M (MMM), following its spinoff of Solventum (SOLVE).

“The initiation of dividends from US media technology majors Meta and Alphabet, along with China’s Alibaba ( BABA ) among others, is a positive signal that will boost global dividend growth by 1.1 percentage points this year,” it said Jane Shoemake, Client Portfolio. manager of the global equity income team at Janus Henderson, in a statement. “These companies are following a well-trodden path of growth industries over the past two centuries, reaching a point of maturity where dividends are a natural way to return excess cash to shareholders.”

Is Alphabet stock a buy, sell or hold?

Alphabet has struggled in recent months amid a broader shift, but the communications services stock remains about 10% higher for the year to date. And Wall Street is bullish on GOOGL.

Conformable S&P Global Market Intelligencethe average analyst price target is $203.34, representing an implied upside of more than 30% from current levels. Additionally, the consensus recommendation is a Buy.

Financial services firm Truist Securities has a Buy rating and a $196 price target on parent Google.

“We remain bullish on GOOGL, but believe visibility into its potential search traffic cannibalization and AI generative search monetization (expected to begin by year-end) will dictate near-to-mid-term stock direction,” Truist Securities said. analyst Youssef Squali in a September 11 note.

Meta platforms has had a remarkable year in the price charts, up almost 50% so far. And Wall Street thinks parent Facebook has more room to run.

According to S&P Global Market Intelligence, the average analyst price target for META stock is $571.95, representing an implied upside of about 10% from current levels. Furthermore, the consensus recommendation is Strong Buy.

Financial services firm Argus Research has a buy rating on the blue chip stock, with a $600 price target.

“Meta is benefiting from a reacceleration in advertising revenue, significant margin expansion on the back of deep cost reductions and robust cash flow,” Argus Research analyst Joseph Bonner said in an Aug. 1 note. “While investors were spooked by CEO Mark Zuckerberg’s comments following Q1 results on increased spending and capex for Meta’s AI systems, his comments may have actually inoculated them against growth of the company’s investment guidance with the second quarter numbers.”

VaselineSeptember 12, 2024

0 2 minutes read

Vaseline

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