FM:CC - 2 Top Dividend-Growth Stocks to Buy in May
2024-05-03 20:45:00 ET
Earnings season is upon us, and while some dividend stocks have seen growth, others have fallen to the side. But today, let’s focus on the good news. We’ll cover two dividend stocks that continued their growth this month and could still be a strong buy to consider in May.
Brookfield Renewable
Shares of Brookfield Renewable Partners ( TSX:BEP.UN ) shot up with strong earnings being the culprit. And it’s about time. Shares of the dividend stock continue to trade at nearly half of their all-time highs, achieved back in 2021.
The company had a record first quarter, literally. And what’s more, it signed a “landmark agreement” with Microsoft . Brookfield will deliver over 10.5 gigawatts of more renewable energy capacity. This will help the company grow out its artificial intelligence (AI) cloud services business.
BEP stock reported funds from operations (FFO) of US$296 million for the quarter, at US$0.45 per share. The company expects to deliver 10% growth in FFO for the entire year and continues to target US$3 billion of proceeds this year for attractive returns from asset sales.
It was an improvement for the quarter, with FFO climbing quarter over quarter. The third quarter brought in FFO of US$253 million, with a loss of US$64 million. By the fourth quarter, FFO grew to US$255 million with a net income of US$35 million. So, while the company increased its loss, FFO continues to rise.
Overall, the company demonstrates strength and also recently increased its dividend by 5%. So, as shares rise and strength is underway, it’s a great time to pick up BEP stock for growth with a 5.7% dividend yield.
First Quantum
Another company seeing growth on the back of earnings is First Quantum Minerals ( TSX:FM ). The stock has climbed higher and higher recently, especially after strong first-quarter earnings, even though the company reported a loss.
FM stock reported a loss of US$159 million in the first quarter, with revenue of US$1.04 billion. On a quarterly basis, the company reported US$660 million in gross profit during the third quarter, and revenue of US$2.029 billion. By the fourth quarter, the stock reported gross profit that was down to US$87 million and revenue down to US$1.22 billion.
So, with revenue down and a bigger loss, what are investors so excited about? In this case it’s that the stock cut its debts by US$1.14 billion in the first quarter. Furthermore, that there was also more copper to be found in some of its mines, and now its copper mine in Panama is looking to open back up. So, while the company had a weaker-than-normal quarter, it looks promising for investors looking ahead.
With shares continuing to climb and a 1.57% dividend yield, FM stock is another company that investors should certainly keep on their radar in May.
The post 2 Top Dividend-Growth Stocks to Buy in May appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners and Microsoft. The Motley Fool recommends Brookfield Renewable Partners and Microsoft. The Motley Fool has a disclosure policy .
2024