8. Smith & Nephew plc (NYSE:SNN)
Dividend Yield as of December 28: 3.01%
Smith & Nephew plc (NYSE:SNN) is a British multinational medical equipment manufacturing company that offers a wide range of services and products to its consumers. In the third quarter of 2024, the company reported revenue of over $1.4 billion, up 4% from the same period last year. Though its revenue showed growth, it wasn’t quite encouraging for investors. In its earnings report, the company mentioned that the slow performance in China during the quarter reduced growth by 190 basis points, due to the impact of the Value-Based Pricing (VBP) on Sports, as well as sluggish demand and subsequent channel adjustments in Recon. The stock is down by roughly 8.7% in the past year.
That said, Smith & Nephew plc (NYSE:SNN) remains on track with its transformation into a higher-growth entity. There has been growth in the US Recon segment, which was previously a source of structural weakness, and the specific challenges in China are expected to subside by 2025. Ongoing improvements in both operating and commercial metrics indicate that the 12-Point Plan and cultural changes are increasingly becoming a core part of the company’s operations.
Smith & Nephew plc (NYSE:SNN)’s Advanced Wound Management (AWM) segment remained the winner amongst its other segments. It generated revenue of $422 million, which showed a 6.5% growth from the same period last year. According to analysts, the business possesses several strengths, including a broad and resilient customer base, a solid group of existing buyers, and proprietary technology.
Heartland Advisors made the following comment about Smith & Nephew plc (NYSE:SNN) in its Q3 2024 investor letter. Here is what the firm has to say:
“Health Care. Another new holding from our quality value watchlist is Smith & Nephew plc (NYSE:SNN), a leading medical device company for advanced wound care, sports medicine, and orthopedics.
The company has been hard at work for over two years implementing a badly needed self-help playbook. Those efforts are increasingly bearing fruit. While SNN’s wound care business enjoys a strong return on invested capital, its orthopedics group is well below peers or what is deemed acceptable. Management is taking several measures to improve asset utilization and capital allocation. Fixing the orthopedic segment’s performance can unlock significant value for shareholders…” (Click here to read the full text)
Smith & Nephew plc (NYSE:SNN) is a strong dividend payer. The company never missed a dividend payment since 1937, which makes SNN one of the best FTSE dividend stocks on our list. Its interim dividend comes in at $0.144 per ordinary share for a dividend yield of 3.01%, as of December 28.
Smith & Nephew plc (NYSE:SNN) was included in 10 hedge fund portfolios at the end of Q3 2024, up from 9 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $27.4 million.
