After staging a strong comeback from the lows hit in early April, Wall Street has been experiencing volatile trading again in recent weeks. Growing uncertainty around the new U.S. administration’s economic tariffs continues to weigh on investor sentiment. In such a scenario, investors should shift their focus to products that provide stability and safety in a rocky market. And nothing seems better than dividend investing, which offers income and stability. Though dividend stocks do not offer dramatic price ...

Company Overview - Qifu Technology is a leading AI-empowered credit-tech platform in China with 584 million cumulative users with approved credit lines[13, 27] - The company has established partnerships with 163 financial institutions[13, 20] - Loan facilitation volume in 1Q25 reached RMB 889 billion, representing a 158% year-over-year increase[13] - Non-GAAP net income in 1Q25 was RMB 1926 million, a 599% year-over-year increase[13] - The company has repurchased US$905 million worth of ADSs cumulatively, leading to a 210% share count reduction[15] Financial Performance - Total net revenue for 1Q25 was RMB 4691 million[62] - Non-GAAP net income for 1Q25 was RMB 1926 million[64] - Platform services contributed 531% to the loan facilitation volume in 1Q25[57] - Platform services contributed 581% to the outstanding loan balance in 1Q25[59] Risk Management - The company maintains robust risk performance, as indicated by delinquency and collection rates[67, 68, 69]

Core Viewpoint - Qifu Technology reported strong financial results for Q1 2025, demonstrating resilience amid macroeconomic challenges, with significant growth in user activity and loan facilitation volume [4][5][35]. Business Highlights - As of March 31, 2025, Qifu Technology connected 163 financial institutional partners and 268.2 million consumers, marking an 11.1% increase from 241.4 million a year ago [4]. - The number of cumulative users with approved credit lines reached 58.4 million, up 11.6% from 52.3 million a year ago [4]. - Cumulative borrowers with successful drawdown totaled 35.5 million, reflecting a 13.8% increase from 31.2 million a year ago [4]. - Financial institutional partners originated 24,401,374 loans through the platform in Q1 2025 [4]. Financial Highlights - Total net revenue for Q1 2025 was RMB 4,690.7 million (US$ 646.4 million), compared to RMB 4,153.2 million in the same period of 2024 [5][9]. - Net income was RMB 1,796.6 million (US$ 247.6 million), an increase from RMB 1,160.1 million in Q1 2024 [28]. - Non-GAAP net income for the quarter was RMB 1,926.2 million (US$ 265.4 million), compared to RMB 1,204.8 million in the same period of 2024 [28]. - The weighted average contractual tenor of loans originated was approximately 10.17 months, slightly up from 10.10 months in Q1 2024 [4]. Revenue Breakdown - Revenue from Credit Driven Services was RMB 3,110.9 million (US$ 428.7 million), up from RMB 3,016.3 million in Q1 2024 [9]. - Loan facilitation and servicing fees under the capital-heavy model were RMB 429.8 million (US$ 59.2 million), significantly higher than RMB 243.8 million in the same period of 2024 [10]. - Financing income increased to RMB 1,817.2 million (US$ 250.4 million) from RMB 1,535.0 million in Q1 2024 [11]. - Revenue from releasing of guarantee liabilities decreased to RMB 778.2 million (US$ 107.2 million) from RMB 1,166.0 million in the same period of 2024 [12]. Operating Costs and Expenses - Total operating costs and expenses were RMB 2,716.0 million (US$ 374.3 million), down from RMB 2,789.1 million in Q1 2024 [17]. - Sales and marketing expenses rose to RMB 591.5 million (US$ 81.5 million) from RMB 415.6 million in the same period of 2024, reflecting increased marketing efforts [19]. - General and administrative expenses increased to RMB 196.5 million (US$ 27.1 million) from RMB 106.4 million in Q1 2024, primarily due to higher share-based compensations [20]. Share Repurchase and Financial Position - The company completed a US$ 690 million convertible notes offering, providing resources to accelerate share repurchase programs [8]. - As of May 19, 2025, approximately 4.4 million ADSs were repurchased for about US$ 178 million under the 2025 Share Repurchase Plan [33]. - The company expects to use remaining net proceeds from the convertible notes offering for further share repurchases [34]. Business Outlook - For Q2 2025, the company anticipates net income between RMB 1.65 billion and RMB 1.75 billion, representing a year-on-year growth of 24% to 31% [35].

Core Viewpoint - Wall Street has experienced a strong recovery due to easing trade tensions, particularly the U.S.-China trade truce and the U.S.-UK deal, which has fostered optimism in the stock market. However, uncertainties regarding Trump and Fed policies persist, making dividend investing an attractive option for consistent income [1]. Dividend Growth Strategy - Dividend investing provides a reliable income source, especially when focusing on stocks with a strong history of year-over-year dividend growth, which can lead to higher returns compared to simple dividend-paying stocks [2][4]. - Stocks with a solid history of dividend growth are typically mature companies, offering protection against market volatility and economic uncertainty while providing consistent payout increases [4][5]. Selection of Dividend Growth Stocks - Three dividend growth stocks identified as compelling picks are Qifu Technology Inc. (QFIN), The TJX Companies Inc. (TJX), and UGI Corporation (UGI) [3]. - Qifu Technology, a credit-tech platform in China, has an estimated earnings growth rate of 22.4% for the year and an average earnings surprise of 14.46% over the last four quarters, with a Zacks Rank of 1 and a Growth Score of B [10]. - TJX Companies, a leading off-price retailer, has an estimated earnings growth rate of 3.99% for the fiscal year ending January 2026 and an average earnings surprise of 5.47% in the past four quarters, holding a Zacks Rank of 2 and a Growth Score of A [11]. - UGI Corporation, a holding company in the energy sector, has seen a positive earnings estimate revision of 3 cents for the fiscal year ending September 2025, with a Zacks Rank of 2 and a Growth Score of B [12][13]. Investment Criteria - The selection criteria for dividend growth stocks include a 5-Year Historical Dividend Growth greater than zero, 5-Year Historical Sales Growth greater than zero, and 5-Year Historical EPS Growth greater than zero, indicating solid growth in dividends, revenues, and earnings [6][7]. - Additional criteria include a Price/Cash Flow ratio less than the industry average, a 52-Week Price Change greater than the S&P 500, and a top Zacks Rank, which collectively narrow down the stock universe to high-potential candidates [8][9].

Core Viewpoint - Qifu Technology, Inc. will hold its annual general meeting (AGM) on June 30, 2025, to discuss several key resolutions including a name change and re-appointment of auditors [1][4]. Group 1: AGM Details - The AGM is scheduled for June 30, 2025, at 10:00 a.m. Beijing time, at Lujiazui Finance Plaza, Shanghai [1]. - The record date for Class A ordinary shares is set for May 27, 2025, Hong Kong time, allowing holders to attend and vote at the AGM [2]. - Holders of American Depositary Shares (ADSs) must provide voting instructions to The Bank of New York Mellon to exercise their voting rights [3]. Group 2: Proposed Resolutions - Proposed changes at the AGM include changing the company's English name from "Qifu Technology, Inc." to "Qfin Holdings, Inc." [1]. - The company plans to adopt an amended and restated memorandum and articles of association [1]. - Deloitte Touche Tohmatsu Certified Public Accountants LLP is proposed for re-appointment as the auditor until the next AGM [1]. - Mr. Xiangge Liu is proposed for re-election as a director of the company [1]. Group 3: Company Overview - Qifu Technology is a leading AI-empowered Credit-Tech platform in China, providing technology services throughout the loan lifecycle [5]. - The company utilizes machine learning models and data analytics to enhance credit service accessibility for consumers and SMEs [5].

Core Viewpoint - Qifu Technology, Inc. is set to hold its annual general meeting (AGM) on June 30, 2025, to discuss several key resolutions including a name change and re-appointment of auditors [1][4]. Group 1: AGM Details - The AGM will take place at 10:00 a.m. on June 30, 2025, in Shanghai, China [1]. - The agenda includes changing the company's English name from "Qifu Technology, Inc." to "Qfin Holdings, Inc." [1]. - The company plans to adopt an amended and restated memorandum and articles of association [1]. - Deloitte Touche Tohmatsu Certified Public Accountants LLP is proposed to be re-appointed as the auditor until the next AGM [1]. - Mr. Xiangge Liu is up for re-election as a director of the company [1]. Group 2: Shareholder Information - The record date for Class A ordinary shares is set for May 27, 2025, Hong Kong time, allowing holders to attend and vote at the AGM [2]. - Holders of American Depositary Shares (ADSs) must provide voting instructions to The Bank of New York Mellon to exercise their voting rights [3]. Group 3: Company Overview - Qifu Technology is recognized as a leading AI-empowered Credit-Tech platform in China, offering a range of technology services to financial institutions and consumers [5]. - The company utilizes advanced machine learning models and data analytics to enhance the loan lifecycle, including borrower acquisition and credit assessment [5]. - Qifu Technology aims to make credit services more accessible and personalized for consumers and SMEs through its Credit-Tech services [5].

Core Viewpoint - Qifu Technology, a leading AI-empowered Credit-Tech platform in China, is set to report its unaudited financial results for Q1 2025 on May 19, 2025, after U.S. markets close [1]. Financial Results Announcement - The unaudited financial results for the first quarter ended March 31, 2025, will be reported after U.S. markets close on May 19, 2025 [1]. - An earnings conference call will be hosted by the management team at 8:30 PM U.S. Eastern Time on May 19, 2025 [2]. Conference Call Details - Participants must pre-register online to join the conference call, with a registration link provided [3]. - A live and archived webcast of the conference call will be available on the Investor Relations section of the Company's website [4]. Company Overview - Qifu Technology is recognized as a leading AI-empowered Credit-Tech platform in China, utilizing machine learning models and data analytics to offer a comprehensive suite of technology services [5]. - The Company aims to enhance accessibility and personalization of credit services for consumers and SMEs through its Credit-Tech services [5].