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Construction Company Ups Dividends 25%
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Hello and welcome to Dividend Brief, the 2 times weekly newsletter focused on dividend investing.
Today, we will look into Cigna, Disney, and Honeywell, highlight a few dividend stocks worth watching, as well as share companies that are about to pay a dividend in the next few days.
Healthcare
Cigna Resumes Merger Talks with Humana Amid Market Fluctuations
Cigna Group is reportedly rekindling its interest in merging with Humana, a smaller competitor, after initially abandoning the effort last year. Recent informal discussions between the two companies suggest a renewed focus on a potential deal, according to sources familiar with the situation.
Following the news, Humana's stock experienced a 6% rise in after-hours trading, while Cigna’s shares fell by about 5%. Humana currently holds a market capitalization of approximately $32 billion, whereas Cigna is valued at around $94 billion.
In the previous attempt to negotiate a merger, Cigna withdrew due to disagreements over pricing and subsequently announced a $10 billion share buyback plan. Although talks have resumed, no definitive decisions have been made, and either company could choose to delay further discussions or abandon the merger entirely.
Cigna has been actively selling its Medicare Advantage business, recently finalizing a $3.3 billion deal with Health Care Service Corp. Meanwhile, Humana has faced challenges this year, including a 40% drop in its stock value due to decreased enrollment in Medicare plans and rising healthcare costs. Concerns about potential antitrust issues continue to loom over any consolidation efforts in the health insurance sector.
Artificial Intelligence
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Entertainment
Disney Maps Out 2026 Leadership Transition Plan
Disney has announced its intention to complete its move to a new CEO in early 2026, marking the first official timeline for its leadership transition. This decision is part of a broader succession plan, ensuring a smooth handover as the current CEO’s term comes to a close. Along with this, Disney will also see a change in its board leadership, as a new chairman will take over in January 2025.
The leadership transition is expected to have a significant impact on Disney as the company navigates challenges in the entertainment industry, including evolving consumer trends and shifting business models. The newly appointed chairman, known for experience in overseeing transitions, will work alongside board members to guide the company through this period of change.
This move comes at a time when Disney is addressing key priorities across its various segments, and the leadership team is seen as pivotal in driving future growth. The timeline for the CEO announcement gives Disney ample time to finalize its succession plan and ensure the next phase of leadership is well-prepared to maintain the company’s strong position in the media and entertainment landscape. This strategic change aims to set Disney up for continued success in the years ahead.
Tech
Honeywell Teams Up with Google to Enhance Industrial AI Capabilities
Honeywell has partnered with Google to leverage its AI platform, Gemini, to enhance operational efficiency and employee productivity across industrial sectors. By integrating Google’s AI capabilities with Honeywell’s Forge IoT platform, this collaboration aims to provide actionable insights that can reduce maintenance costs and improve workforce efficiency. The AI system will be available to industrial clients starting in 2025, offering a range of automated solutions for technicians and engineers.
One of the primary goals of this partnership is to address the labor shortages faced by the industrial sector. Honeywell believes AI can enable workers with less experience to perform at a higher level through AI-powered tools, streamlining tasks such as predictive maintenance and troubleshooting. These AI systems will assist workers in real time, delivering critical information about equipment performance and potential issues.
The collaboration also opens the door for new applications, including on-device AI solutions for locations with limited internet connectivity. This move positions both Honeywell and Google to lead the industrial sector’s adoption of advanced AI tools, providing a path toward greater autonomy and increased operational efficiency in factories, hospitals, refineries, and other industries.
Artificial Intelligence
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Dividend Stocks Worth Watching
UPS has been showing impressive forward progress and surprising resilience to Amazon’s own fleet of vehicles. The company’s 4.94% dividend yield is just one more potential reason to invest.
HRL has remained a quiet champion and a go-to source for consumer products for more than 125 years. It currently pays out a quarterly 28-cent per share dividend to its loyal shareholders.
MPC maintains operations in three diverse regions and brings in nearly $38 billion in revenue each year. The company handed out its 82 cent per share quarterly dividend last month.
Dividend Increases
REPX increased its dividend payout to 38 cents per share, an increase of 5.5%. Its new forward yield is 5.1%
AGX boosted its dividend payout to 37.5 cents per share, an increase of 25%. The company’s new forward yield is 1.6%
FUNC grew its dividend payout to 22 cents per share, an increase of 10%. The new forward yield of FUNC is 3.0%
Dividend Decreases
RY decreased its dividend payout to $1.02 per share, a cut of 0.19%. Its new forward yield is 3.46%
BSBR dropped its dividend payout to 7 cents per share, a cut of 8.7%. The new forward yield of BSBR is 4.6%
MDRR lowered its dividend payout to just 6 cents per share, a cut of 88%. The company’s new forward yield is 2.0%
Upcoming Dividend Payers
ALG is set to pay 26 cents per share to all shareholders of record on 10/28/24
SAIC is going to pay its quarterly dividend of 37 cents per share to all shareholders of record on 10/25/24
ORCL is ready to hand out a 40 cent per share dividend to its shareholders of record on 10/24/24
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