Three Trends Driving Up Dividend Stock Share Prices After Lifting The Lockdowns

Shares of Smith & Wesson Brands (SWBI) are up 165% year-to-date. The company’s last earnings in June were for the fiscal fourth quarter that closed on April 30.

At that time, the EPS $0.57 per share beat the Wall Street consensus by $0.15.

The next earnings report will be out at the end of August, and a blowout quarter could continue to propel the share price higher.

Sturm, Ruger & Company, Inc. (RGR) is up 71% year-to-date, although the company’s second-quarter GAAP EPS of $1.05 per share missed the $1.23 Wall Street estimate.

Ruger did declare a quarterly dividend of $0.42 per share based on the results of the second quarter and a special dividend of $5.00 per share.

Both dividends are for shareholders of record as of August 14, 2020, and are payable on August 28, 2020.

Trend 3: Home Improvement and Relocation

The third trend from the pandemic focuses on homeownership and home improvement. I know the number of home improvement projects in my neighborhood exploded in April through June. There also is a growing trend of relocation out of the urban centers into the suburbs, where COVID-19 infection rates are much lower. This trend is very positive for home builders and real estate companies.

The Home Depot, Inc. (HD) is an obvious beneficiary of the explosion in home improvement projects.

When the company reported first-quarter results in May, same-store sales growth of 7.5% handily beat the Wall Street estimate of 5.8%, and reported revenue beat the estimate by $690 million.

Home Depot has been aggressively growing its dividend, with the payout increasing at an average of 20% per year over the last decade.

The Hoya Capital Housing ETF (HOMZ) is a newer fund that gives investment exposure to the full housing sector.

The fund portfolio covers the four sectors of housing:

  1. Home Ownership and Rental Operations (30% of the portfolio)
  2. Home Building and Construction (30%)
  3. Home Improvement and Furnishings (20%)
  4. Home Financing, Technology and Services (20%).
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Disclaimer: The information contained in this article is neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Investors Alley Corp. and its ...

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