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Hello and welcome to Dividend Brief, the 2 times weekly newsletter focused on dividend investing. If you’re not looking for more emails from us, just click here to unsubscribe!

Today, we will look into CVS, Papa Johns, and HP, highlight a few dividend stocks worth watching, as well as share companies that are about to pay a dividend in the next few days.

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Healthcare

CVS Reshapes Retail Health Strategy as Industry Evolves

CVS is making significant changes to its retail healthcare approach, aiming to create a more integrated system that enhances collaboration among its pharmacists, in-store clinic nurses, and primary care providers. The strategy is designed to expand healthcare accessibility and improve patient outcomes by maximizing the capabilities of its extensive workforce.

The company operates hundreds of in-store health clinics that provide essential services such as vaccinations and diagnostic testing, while its primary care network caters to senior patients. Unlike other healthcare organizations that have acquired traditional medical practices, CVS is focused on strengthening its retail healthcare model. This shift comes as the industry faces challenges, with some major players reducing their presence in the space.

At the same time, CVS is streamlining its operations by closing underperforming locations, a move seen across the retail pharmacy sector. While some competitors have scaled back or sold off healthcare divisions, CVS sees an opportunity to expand by utilizing pharmacists in broader roles. There is a growing push to leverage their expertise beyond medication dispensing, potentially changing how they are compensated for their services.

With a shortage of primary care providers nationwide, CVS is positioning itself as a key player in delivering accessible healthcare solutions through its retail network.

CVS currently trades at $66 and pays a dividend of 67 cents per share, a yield of 4.00%

Restaurants

Private Investment Firm Eyes Papa Johns Buyout

A private investment firm is considering a buyout of Papa Johns, aiming to take the pizza chain off the public market. The firm, which has previously executed similar acquisitions in the restaurant and retail sectors, has been in discussions about a potential deal.

Last year, it acquired a small stake in Papa Johns, staying just below the threshold that would require disclosing its plans. Its strategy often involves taking minority positions in public companies with the goal of full takeovers. The firm has previously led successful buyouts in the fast-food and consumer goods industries, using this approach to reshape businesses under private ownership.

While details on how the acquisition would be financed remain unclear, the firm has connections to major investment networks, suggesting access to significant capital. Papa Johns has faced challenges compared to some competitors in the pizza industry, and this is not the first time the company has been considered a takeover target. Other investors have previously explored similar moves, reflecting ongoing interest in reshaping the brand’s future.

As the situation develops, the potential buyout could mark another major shift in the restaurant industry, with Papa Johns possibly undergoing significant changes under new ownership.

PZZA currently trades at $49 and pays a dividend of 46 cents per share, a yield of 3.67%

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Tech

HPE Unveils First NVIDIA Blackwell-Based Solution for AI Cluster Deployments

Hewlett Packard Enterprise (HPE) has announced the shipment of its first solution utilizing NVIDIA’s Blackwell architecture, the NVIDIA GB200 NVL72. This high-performance system is tailored to assist service providers and large enterprises in deploying expansive AI clusters, leveraging advanced liquid cooling technology for improved efficiency and performance.

The GB200 NVL72 integrates NVIDIA's latest GPUs, CPUs, and networking technologies, making it ideal for AI models exceeding a trillion parameters. The system's architecture supports heavy parallel workloads like generative AI training and inference, with a focus on low-latency, shared-memory configurations.

With AI service providers facing increasing demands for scalability and performance, HPE aims to offer a solution that reduces costs while providing exceptional capabilities. Their deep expertise in liquid cooling allows for the efficient management of high-power, high-compute environments. HPE has previously delivered several of the world’s top supercomputers, and their ongoing partnership with NVIDIA strengthens their leadership in providing cutting-edge AI infrastructure solutions.

The introduction of the GB200 NVL72 underscores HPE's commitment to supporting large-scale AI projects, delivering fast deployment times, and offering unmatched service to enterprise customers.

HPE currently trades at $21 and pays a dividend of 13 cents per share, a yield of 2.47%

Dividend Stocks Worth Watching

EPR Properties (EPR) is a real estate investment trust specializing in experiential properties, with over 200 tenants in the United States and Canada. Its consistent stock growth and 7.12% dividend yield make it a good investment contender.

IBM (IBM) holds a strong position in cloud computing and AI, setting the stage for stable revenue and long-term gains. Steady dividend payments of 2.61% make it now a potentially good time to buy.

Dynex Capital (DX) revealed strong financials in its December 2024 report, prompting shares to rise and not let up. Its biggest draw is a massive 13.45% yield that shareholders get to take advantage of.

Dividend Increases

RCL increased its dividend payout to 75 cents per share, an increase of 36%. Its new forward yield is 1.17%.

CSCO boosted its dividend payout to 41 cents per share, an increase of 2.5%. Its new forward yield is 2.6%.

CSX grew its dividend payout to 13 cents per share, an increase of 8.3%. Its new forward yield is 1.58%.

Dividend Decreases

BCE lowered its dividend payout to 69.6 cents per share, a cut of 5.5%. Its new dividend yield is 12.6%.

TIMB dropped its dividend payout to 7 cents per share, a cut of 58%. Its new dividend yield is 5.8%.

HTGC decreased its dividend payout to 47 cents per share, a cut of 2%. Its new dividend yield is 9.11%.

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Everything Else

  • Kimberly-Clark has increased its dividend for 58 consecutive years, reinforcing its reputation as a stable income stock.

  • ExxonMobil remains a top dividend stock due to its strong financials and commitment to shareholder returns.

  • Altria boasts one of the highest dividend yields in the S&P 500, attracting income-focused investors.

  • AT&T plans a $20 billion buyback program as part of its business turnaround strategy.

  • Entergy continues its strong performance into 2025, maintaining a solid dividend for investors.

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

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