6. Smith & Nephew plc (NYSE:SNN)
Dividend Yield as of December 29: 3.03%
Smith & Nephew plc (NYSE:SNN) is a London-based multinational medical equipment manufacturing company that offers a wide range of services and products to its consumers. The company’s Advanced Wound Management (AWM) segment continued to lead among its various divisions, generating $422 million in revenue in Q3 2024, a 6.5% increase compared to the same period last year. Analysts highlighted the segment’s strengths, including a diverse and loyal customer base, a strong group of current buyers, and proprietary technology.
Overall, in the third quarter of 2024, Smith & Nephew plc (NYSE:SNN) posted revenue exceeding $1.4 billion, reflecting a 4% increase compared to the same quarter last year. However, the growth was not particularly reassuring for investors. The company explained that slower performance in China during the quarter had a negative impact on growth, reducing it by 190 basis points. This was due to the effects of Value-Based Pricing (VBP) on Sports, along with weaker demand and subsequent adjustments in the Recon segment. The stock has fallen by over 9% in the past year.
Despite these challenges, Smith & Nephew plc (NYSE:SNN) is progressing with its transformation into a higher-growth company. The US Recon segment, which was once a weakness, has shown growth, and the issues in China are anticipated to ease by 2025. Continued improvements in operational and commercial metrics suggest that the company’s 12-Point Plan and cultural changes are becoming integral to its operations. 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 one of the best FTSE dividend stocks on our list as the company has been making regular dividend payments to shareholders since 1937. It currently pays an interim dividend of $0.144 per share and has a dividend yield of 3.03%, as of December 29.
Insider Monkey’s database of Q3 2024, 10 hedge funds tracked by Insider Monkey held stakes in Smith & Nephew plc (NYSE:SNN), up from 9 in the previous quarter. These stakes are collectively valued at over $27.4 million. Among these hedge funds, Armistice Capital owned the largest stake in the company in Q3.
