Before Halloween, a few big income names have to prove their dividends are as solid as their yields look.

A parcel carrier paying 7% needs its cash flow to clear a $5.4 billion dividend bill, a chocolate maker near its 52-week low needs cheaper cocoa to rebuild margins, and a gas pipeline operator needs fresh contracts to keep its payout climbing.

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Pharmaceuticals

A $1.65 Billion Deal Gives Viatris More Branded Medicines to Gro

Viatris Inc. (NASDAQ: VTRS) has agreed to acquire Pacira BioSciences for $1.65 billion, adding established non-opioid pain treatments including Exparel and Zilretta to its portfolio. The deal gives Viatris a larger position in treatments designed to reduce reliance on traditional opioid pain medicines.

Pacira also brings an existing commercial platform that Viatris can plug into its broader global reach, giving the company more branded products to grow alongside its large portfolio of generics and mature medicines.

Pain Treatment Gives the Company a Clearer Growth Area

Demand for alternatives to opioids has created room for medicines that can manage pain without relying on the same treatment approach. Pacira already has products positioned around that shift.

That makes pain management a more important part of your view of Viatris because the company is moving into an area where product differentiation matters more than simply competing on price.

Global Reach Could Make Pacira More Valuable

Pacira has built its business primarily around the U.S. market, while Viatris already sells medicines across a much broader international network. That distribution reach creates an opportunity to take existing products into more markets over time.

If those medicines gain wider adoption outside the U.S., you have a straightforward way to measure whether Viatris can use its global scale to make an acquired portfolio more valuable.

VTRS currently trades at $17 and pays a dividend of $0.48 per share, a yield of 2.81%.

Enterprise AI

Private AI Is Becoming a Bigger Business for Accenture

Accenture plc (NYSE: ACN) has expanded its more than 20-year relationship with Dell by forming the Accenture Dell Business Group, a dedicated team focused on helping companies build and run AI on private and hybrid infrastructure. Accenture plans to train more than 3,000 professionals across Dell’s technology portfolio.

The move gives Accenture another way to stay involved after the strategy work ends, helping clients design, install, and modernize the infrastructure needed to run AI inside their own environments.

Dell Adds the Infrastructure Layer

Dell brings the servers, storage, and systems needed to run AI privately, while Accenture adds industry knowledge, implementation, and business transformation expertise. Together, they can offer clients more of the project under one relationship.

Private AI matters to your view of Accenture because those projects can pull consulting, infrastructure design, implementation, and long-term modernization into the same customer relationship.

The Relationship Can Last Beyond the Initial Build

AI infrastructure does not stop changing once it is installed. Companies still need upgrades, new models, security work, software integration, and changes to how employees use the systems.

As more companies keep sensitive AI workloads in-house, you have another reason to treat infrastructure execution as part of Accenture’s growth story, not just strategy advice.

ACN currently trades at $204 and pays a dividend of $6.84 per share, a yield of 3.33%.

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Airlines

Delta’s Refinery Is Becoming More Important as Fuel Costs Surge

Delta Air Lines, Inc. (NYSE: DAL) is facing another sharp rise in jet-fuel costs as higher oil prices put pressure on the airline industry. Unlike most of its competitors, however, Delta owns the Monroe Energy refinery in Pennsylvania, giving it a direct connection to the fuel supply behind its flights.

The refinery is expected to contribute about $700 million this year, making this unusual asset increasingly relevant as airlines manage one of their highest operating costs.

Owning a Refinery Changes the Fuel Equation

Most airlines buy the fuel they need and absorb whatever happens to market prices. Delta has another layer in the business because its refinery can benefit when refining economics strengthen.

Higher prices at the pump may shape your view of rising energy costs, but Delta experiences the same pressure on a far larger scale. Owning part of the fuel chain gives it something competitors generally do not have.

Fuel Strategy Matters Beyond One Quarter

Air travel demand can remain healthy while expensive fuel still makes every flight more costly to operate. That makes energy management an important part of Delta’s broader business strategy, not simply another expense line.

As fuel markets stay volatile, you have another reason to separate Delta from airlines that depend entirely on outside suppliers. Its refinery gives management one more tool when one of the industry’s costs suddenly moves against it.

DAL currently trades at $82 and pays a dividend of $0.86 per share, a yield of 1.05%.

Dividend Stocks Worth Watching

United Parcel Service (NYSE: UPS)

UPS reports third-quarter results in late October, and your whole thesis rides on cash flow. Management expects to pay about $5.4 billion in dividends this year, so free cash flow has very little room to slip. The stock sits about 23% below its 52-week high, and the yield has climbed to about 7%.

The upside case is that UPS is deep into shedding low-margin Amazon volume, which sets up easier comparisons from here. If third-quarter cash flow holds up, a 7% yield is hard to ignore. If it slips, the dividend becomes the debate, so start small and add after the print if the numbers hold.

The Hershey Company (NYSE: HSY)

Hershey trades close to its 52-week low of about $156 and far below its high of about $239. Cocoa costs are the margin story you want to hear about when Hershey reports, with results expected around October 29.

Your key questions for the call: how fast lower cocoa costs reach the income statement, and what management says about 2027 pricing. Hershey pays $1.452 per quarter, a yield of about 3.6%, and the board raised that payout earlier this year even with cocoa squeezing margins. If the call confirms relief is coming, you're getting a quality dividend grower near the bottom of its range.

Kinder Morgan (NYSE: KMI)

Kinder Morgan runs one of the largest natural gas pipeline networks in the country, and demand from LNG exports and power plants keeps feeding its project list. Its backlog stood at about $9.6 billion after the second quarter, and management raised its full-year 2026 guidance in July.

Your next look comes with third-quarter results expected around October 21. Watch whether new projects replace the ones going into service, because that is what keeps the payout climbing. KMI pays $0.2975 per quarter, a yield of about 3.7%.

Dividend Increases

Glacier Bancorp (GBCI) raised its quarterly dividend 6.1% to $0.35 per share from $0.33, a yield of about 3.3%.

National Health Investors (NHI) raised its quarterly dividend 2.2% to $0.94 per share from $0.92, a yield of about 5.8%.

Encompass Health (EHC) raised its quarterly dividend 10.5% to $0.21 per share from $0.19, a yield of about 0.7%.

Dividend Decreases

Pershing Square (PS) cut its quarterly dividend 16% to $0.103 per share from $0.122, a yield of about 0.8% at the new rate.

Conagra Brands (CAG) cut its quarterly dividend 50% to $0.175 per share from $0.35, a yield of about 5.2% at the new rate.

Campbell's (CPB) cut its quarterly dividend 36% to $0.25 per share from $0.39, a yield of about 5.2% at the new rate.

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*Reagan Gold Group does not provide financial, legal, or tax advice. This information is for educational purposes only and should not be considered investment advice. All investments carry risk, including loss of principal. Past performance is not indicative of future results. Consult your licensed financial advisor before making investment decisions.

REIT dividends are typically NOT eligible for the lower 'qualified dividend' tax rate. How are they usually taxed instead?

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Upcoming Dividend Payers

Accenture (ACN) goes ex-dividend Tuesday, October 13, paying $1.71 per share on November 13.

PNC Financial Services (PNC) goes ex-dividend Wednesday, October 14, paying $2.00 per share on November 5.

Delta Air Lines (DAL) goes ex-dividend Thursday, October 15, paying $0.215 per share on November 5.

Owens Corning (OC) goes ex-dividend Monday, October 19, paying $0.79 per share on November 5.

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