Three income names have catalysts lined up over the next few weeks.

One is a retailer closing in on 55 straight years of raises, one is a Midwest utility going ex-dividend this week, and one is a retirement giant that just lifted its payout.

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Private Credit

Ares Capital Is Expanding Its U.S. Lending Business With a $2.6 Billion Takeover

Ares Capital Corporation (NASDAQ: ARCC) has agreed to acquire MidCap Financial Investment Corporation in a cash-and-stock transaction valued at approximately $2.6 billion, including debt.

The combined company would hold more than $31 billion in investments across more than 800 companies, based on September valuations.

Existing Loans Bring Income and Credit Risk

MidCap primarily lends to privately owned U.S. businesses through senior secured loans. Those investments give Ares Capital an established portfolio with borrowers already making payments.

A larger loan book does not automatically leave you with a stronger business. Borrowers must keep repaying, and credit losses can absorb the benefit of additional lending income.

Relationships Can Outlast the Acquired Loans

MidCap would add more than 200 existing investment positions and expand Ares Capital’s connections with financial sponsors. Those relationships can create opportunities to finance businesses beyond the initial portfolio.

Your strongest reason to view the acquisition as lasting expansion would be repeat business from those connections.

Acquired loans eventually repay; established relationships can generate replacement lending opportunities.

The Financial Benefit Must Survive Execution

Ares Capital expects the transaction to increase core earnings per share modestly. Ares targets completion in the first half of 2027, subject to shareholder and regulatory approvals.

Management’s forecast gives you a concrete standard beyond portfolio size: additional income must outweigh financing costs, operating expenses, and credit losses.

Borrower performance will determine whether greater scale produces stronger earning power.

ARCC currently trades at $18 and pays a dividend of $1.92 per share, a yield of 10.33%.

Telecommunications

BCE Is Raising C$2.45 Billion From Its Towers While Keeping Control

BCE Inc. (NYSE: BCE), Bell Canada, has agreed to sell a 49.9% stake in a newly formed wireless tower company to La Caisse for C$2.45 billion. The business, called TowerCo, will own and operate more than 5,000 sites across Canada.

Bell will retain a controlling interest, raising capital from infrastructure already supporting its network while maintaining access through long-term agreements.

The Cash Comes With Continuing Obligations

TowerCo will lease capacity back to Bell. The arrangement provides immediate capital, but it also creates payments that must be considered alongside the proceeds.

Lease payments can offset part of the financing benefit over time, so the sale price alone cannot define the transaction. The ongoing cost of access matters.

Debt Reduction Can Make the Benefit Tangible

BCE expects the transaction to support debt reduction and funding for growth. The company hopes to close in the first quarter of 2027, subject to regulatory approvals and other conditions.

Debt repayment would provide an early measure of benefit before you factor in future tower growth. Attracting additional tenants and developing new sites would require further execution.

BCE currently trades at $20.00 and pays a dividend of $1.26 per share, a yield of 6.24%.

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Media & Entertainment

Disney Is Adding Live Television and Local Shows to Its Streaming Offering

The Walt Disney Company (NYSE: DIS) has agreed to bring Channel 4’s live television channel and hundreds of hours of programming to Disney+ in Britain and Ireland from early 2027. Selected new shows will appear alongside their release on Channel 4’s own platforms.

Local Programming Creates More Viewing Occasions

Major franchise releases can attract attention, but a streaming service also needs programming that encourages regular use. Channel 4 adds another source of entertainment between Disney’s own releases.

The agreement matters even if you expect Disney’s franchises to remain its main attraction. British programming can help the service compete for viewing time outside those release windows.

A Broader Catalog Has to Earn Its Cost

Adding outside programming allows Disney to expand its selection without producing every show itself. The commercial benefit depends on how the content affects subscriptions and cancellations.

An undisclosed licensing price limits your ability to turn a broader catalog into a profit forecast. Additional subscription revenue and stronger retention would need to justify the content spending.

Convenience Must Compete With Other Ways to Watch

Channel 4’s live channel and on-demand programs will sit within a branded section of Disney+. Because selected shows also remain on Channel 4, you cannot count the agreement as an exclusive programming advantage.

Disney must make the convenience and combined selection valuable enough to support subscriptions.

DIS currently trades at $109 and pays a dividend of $1.50 per share, a yield of 1.37%.

Dividend Stocks Worth Watching

Target Corporation (NYSE: TGT)

Target raised its quarterly dividend 1.8% to $1.16 in June, putting it on track for its 55th straight year of increases, and the stock yields about 3.1%.

Shares have rallied hard off their lows but still sit about 13% below their 52-week high.

Third-quarter results come Wednesday, November 18, before the open, so you will see whether the traffic turnaround holds up into the holidays.

The next $1.16 payment goes out December 1, and this is a cash-return story more than a growth story.

Alliant Energy Corporation (NASDAQ: LNT)

Alliant goes ex-dividend Friday, October 30, on a $0.535 quarterly payout, with payment on November 16. The utility has paid dividends for 324 consecutive quarters since 1946, and the stock yields about 3.1%.

Third-quarter results come Thursday, October 29, after the close, the day before the ex-date. Alliant serves Iowa and Wisconsin, where data center projects are adding to power demand, so watch for any update to its growth plan.

Principal Financial Group (NASDAQ: PFG)

Principal raised its quarterly dividend by a penny to $0.85 alongside its third-quarter results, 8% above the payout a year ago.

Operating earnings excluding significant variances rose 7% to $2.49 per share, and assets under management reached $785 billion.

The stock yields about 3.1%, and the new dividend is payable December 18 to holders of record on December 2. If you want a retirement and asset-management business that pays you while it grows, this is one to watch on any pullback.

Dividend Increases

The Hartford (HIG) raised its quarterly dividend 12% to $0.67 per share from $0.60, a yield of about 2.0%.

Armstrong World Industries (AWI) raised its quarterly dividend 10% to $0.373 per share from $0.339, a yield of about 0.9%.

First Citizens BancShares (FCNCA) raised its quarterly dividend 7% to $2.25 per share from $2.10, a yield of about 0.4%.

Hess Midstream (HESM) raised its quarterly distribution 1.2% to $0.7985 per share from $0.7888, a yield of about 10.2%.

Dividend Decreases

Corteva (CTVA) cut its quarterly dividend 72% to $0.05 per share from $0.18 after spinning off its seed business, a yield of about 1.7% at the new rate.

Conagra Brands (CAG) cut its quarterly dividend 50% to $0.175 per share from $0.35, a yield of about 4.8% at the new rate.

Campbell's (CPB) cut its quarterly dividend 36% to $0.25 per share from $0.39, a yield of about 4.8% at the new rate.

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Upcoming Dividend Payers

Fastenal (FAST) goes ex-dividend Wednesday, October 28, paying $0.26 per share on November 25.

AGNC Investment (AGNC) goes ex-dividend Friday, October 30, paying $0.12 per share on November 10.

East West Bancorp (EWBC) goes ex-dividend Monday, November 2, paying $0.80 per share on November 17.

First Interstate BancSystem (FIBK) goes ex-dividend Tuesday, November 3, paying $0.47 per share on November 13.

Franklin Electric (FELE) goes ex-dividend Thursday, November 5, paying $0.28 per share on November 19.

Everything Else

That’s all for today’s edition of the Dividend Brief.

Thanks for reading, and if you have any feedback or dividend stocks you want me to take a look at, just reply to this email!

—Noah Zelvis
DividendBrief.com