4. Vertiv Holdings Co (NYSE:VRT)
Year-to-Date Return as of September 9: 61.4%
Vertiv Holdings Co (NYSE:VRT) ranks fourth on our list of the best unstoppable stocks that pay dividends. The Ohio-based company provides critical digital infrastructure and continuity solutions. It is reaping the rewards from the swift growth of data centers specifically designed for artificial intelligence. The stock has surged by over 61% in 2024 so far.
Vertiv Holdings Co (NYSE:VRT) continues to witness the growing expansion of AI deployment and has the necessary capacity to capitalize on this crucial opportunity while maintaining its focus on future investments. The company acts as the link between IT and facilities in data centers and is only starting to unlock the vast potential of its unique industry position. By utilizing the most comprehensive portfolio of critical digital infrastructure solutions across the entire range of thermal and power technologies, and backed by a global team of over 3,750 field service engineers, it is well-positioned to assist customers in navigating this increasingly complex landscape.
This was also mentioned by Baron Funds in its Q2 2024 investor letter. Here is what the firm has to say:
“Vertiv Holdings Co (NYSE:VRT) a leading provider of critical digital infrastructure for data centers, contributed during the quarter. As an industry leader in data center cooling and power management, Vertiv is poised to benefit from AI-driven growth in data center spend. The NVIDIA partner network, strong industry relationships, and broad product portfolio that Vertiv maintains enables its participation in the creation of the technology roadmap for the future of the data center. In addition, Vertiv is investing in its capacity to serve this growing end market more effectively. The company also has an extensive global service network to aid customers as they grow. We believe the company has durable competitive advantages and a flexible balance sheet to benefit from the expected significant capital investment in data centers for years to come. Vertiv reported very strong results for the March quarter, with orders up 60%, which highlighted the strong demand it is seeing for its products. We sold some of our position into strength after the runup from the positive report, but still hold a major position in the Fund as we see considerable upside in the shares over time.”
In the second quarter of 2024, Vertiv Holdings Co (NYSE:VRT) reported revenue of $1.9 billion, up 13% from the same period last year. The company’s cash position was also strong as it generated $378 million in operating cash flow during the quarter, showing an increase of $125 million from the same period last year. Its adjusted free cash flow was $333 million, an increase of $106 million from Q2 2023. The cash flow was the result of increased adjusted operating profit and better management of working capital.
Vertiv Holdings Co (NYSE:VRT) started paying dividends in 2020 and has paid regular dividends since then. The company currently offers a quarterly dividend of $0.025 per share and has a dividend yield of 0.13%, as of September 9.
According to Insider Monkey’s database of Q2 2024, 92 hedge funds owned stakes in Vertiv Holdings Co (NYSE:VRT), growing from 85 in the previous quarter. These stakes have a total value of over $3 billion. Among these hedge funds, Coatue Management was the company’s leading stakeholder in Q2.
