Software Company Grows Dividend 36%

Hello and welcome to Dividend Brief, the 2 times weekly newsletter focused on dividend investing.

Today, we will look into Apple, Abbott Laboratories, and Microsoft, highlighting a few dividend stocks worth watching as well as share companies that are about to pay a dividend in the next few days.

Tech

Apple Expands Creative Toolkit with Pixelmator Acquisition

Apple has announced the acquisition of Pixelmator, the company known for developing popular image editing apps for iPhone and Mac. Founded in Lithuania in 2007, Pixelmator has gained recognition for its Pixelmator and Pixelmator Pro apps, which have become strong competitors to Adobe Photoshop. The company also offers Photomator, a dedicated photo editing tool.

Over the years, Apple has featured Pixelmator’s products in key presentations and recognized them for their integration of machine learning and AI, which allow advanced editing features like object removal and color adjustments. In 2018, Pixelmator Pro was named Mac App of the Year, showcasing its alignment with Apple’s focus on user-friendly and high-performance software.

Apple’s acquisition strategy often involves smaller companies that enhance its technology portfolio. This deal follows a pattern seen in previous purchases, such as Dark Sky in 2020, which was folded into Apple’s weather app, and Workflow in 2017, which evolved into the Shortcuts app.

Pixelmator has stated that users should not expect immediate changes to its current suite of apps. This acquisition comes alongside Apple's recent launch of its new photo editing suite, Apple Intelligence, which features AI-powered tools for enhancing images.

AAPL currently trades at $222 and pays a dividend of 25 cents per share, a yield of 0.45%.

Smart Algorithm

Imagine trading with a pattern so consistent, it’s known as "the world's most predictable pattern."

One seasoned trader from north Florida has used this strategy to grow his model portfolio by an impressive 85% per year, all by tapping into the reliable moves of Wall Street’s algorithms.

This pattern isn’t just theory; it’s been tested and proven time and again, bringing in steady gains even during volatile market conditions.

Now, he's offering access to this approach for free, giving traders a chance to see how it’s done and make it part of their own toolkit.

If you're looking for a method that’s designed to deliver consistent results, this could be the game-changer you've been waiting for.

Healthcare

Abbott Shares Rally Following Key Jury Verdict in Baby Formula Case

Abbott Laboratories experienced a significant boost in its stock value after a jury in Missouri ruled in favor of the company and Reckitt’s Mead Johnson unit, dismissing claims that their baby formula contributed to an intestinal disease in an infant. The plaintiff, Kaine Whitfield, sought a substantial verdict in the trial, which spanned five weeks in St. Louis. Previous related trials had seen hefty verdicts against the companies, making this outcome a welcome relief for Abbott.

The decision positively impacted Abbott's stock, which saw a jump as shares reclaimed key support levels. This rebound came after shares had dipped following an initial breakout earlier in the month. For investors, the recent gains represented a significant recovery.

However, Abbott and Mead still face around 1,000 ongoing lawsuits alleging their formula products led to necrotising enterocolitis (NEC), a serious condition mainly affecting premature infants. In the Whitfield case, it was argued that the companies did not adequately warn about the potential risks associated with their specialized formula.

Notably, three prominent U.S. health agencies recently issued a joint statement indicating there is no conclusive evidence linking preterm infant formula to NEC. This development was allowed into the trial record, strengthening Abbott's position as cases transition to federal courts.

ABT currently trades at $118 and pays a dividend of 55 cents per share, a yield of 1.85%.

Tech

Microsoft Revamps Windows 11 Login with Enhanced Passkey Features

Microsoft is enhancing its Windows Hello authentication in Windows 11 with new features and a revamped interface. Currently being tested with Windows Insiders, these updates bring visual adjustments, updated icons, and a smoother process for using passkeys. The changes will not only impact the login experience but will also apply to signing into various apps and websites, offering a more seamless approach to authentication.

The revised design aims to simplify the process of switching between different login methods, making it easier for users to choose their preferred authentication option. The existing passkey setup, which relies on scanning QR codes and has a dated interface, is set to be replaced with a more streamlined experience. This is part of Microsoft’s effort to modernize its security features to align with current user expectations.

Additionally, Microsoft has developed a new API for third-party password and passkey managers. This will let developers integrate their applications directly with the updated Windows Hello system, supporting passkey use across multiple devices and enabling synchronization with user accounts.

The new features are currently in beta testing and will soon be available in further test channels, with a broader rollout expected in the near future for all Windows 11 users.

MSFT currently trades at $410 and pays a dividend of 83 cents per share, a yield of 0.81%.

Uranium

With AI, big data, and rapid industrialization fueling unprecedented power needs, the pressure on traditional energy sources is mounting. In response, 60 nuclear power plants are under construction worldwide, with another 110 in planning—all requiring massive uranium supplies.

This surge in nuclear development is setting the stage for a severe uranium supply crunch. The limited availability of high-grade uranium presents an opportunity for those who can meet this demand, creating a unique investing sweet spot.

One emerging company is already positioned with rich uranium deposits, potentially providing a crucial supply to stabilize this growing energy demand.

As the uranium market heats up, this company could be instrumental in easing the crisis.

Dividend Stocks Worth Watching

ES continues to grow its presence across multiple sectors and regions, making it very palatable in investors’ eyes. The company’s 4.5% dividend yield makes it even more enticing.

BKH has been on a run lately, growing its customer base at near break-neck speeds. At a 4.5% dividend yield, it’s one of only a handful of dividend kings in the energy sector.

VICI has an impressive run of paying dividends, increasing its yield year after year. Its current 5.50% payout and promising business model make it viable for most portfolios.

Dividend Increases

OTEX increased its dividend payout to 26 cents per share, an increase of 36%. The new forward yield of OTEX is 3.49%

XOM raised its dividend payout to 99 cents per share, an increase of 4%. Its new forward yield is 3.44%

KIM boosted its dividend payout to 25 cents per share, an increase of 4%. Its new forward yield is 4.22%

Dividend Decreases

RGR decreased its dividend payout to 11 cents per share, a cut of 42%. Its new forward yield is 1.08%

LNG lowered its dividend payout to 50 cents per share, a cut of 35%. The new forward yield of LNG is 1.09%

GIL dropped its dividend payout to 15 cents per share, a cut of 26%. The company’s new forward yield is 1.24%

Upcoming Dividend Payers

CLX is handing out $1.22 to all shareholders of record on 11/07/24

TNXM is going to pay 39 cents per share to all shareholders of record on 11/08/24

MCBS is paying out 23 cents per share to all shareholders of record on11/08/24

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