Network Provider Adds 11% to Dividend

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

Today, we will look into CVS, Exxon-Mobil, and Cisco, 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

CVS Health Expands Board with Four New Members to Strengthen Strategic Focus

CVS Health has announced the addition of four new members to its Board of Directors: Leslie Norwalk, Larry Robbins, Guy Sansone, and Doug Shulman. The appointments follow discussions with Glenview Capital Management, aimed at enhancing the strategic direction and leadership of the company.

The board expansion is seen as a step towards strengthening CVS Health’s focus on maximizing value across its integrated businesses. With a diverse range of expertise, the new directors are expected to bring fresh insights that will help boost financial and operational performance. The company’s leadership emphasized the importance of this new talent in advancing its long-term strategic goals, including improving healthcare services and enhancing customer experiences.

These new board members will take on roles within key committees: Norwalk will join the Health Services Committee, Sansone will serve on the Audit Committee, and Shulman will be part of the Management Planning and Development Committee. The expanded board now has a total of 16 members, reflecting CVS Health's commitment to robust governance and strategic growth.

CVS Health and Glenview Capital have also entered into a confidentiality agreement, ensuring both parties maintain compliance and transparency. This cooperative effort is expected to align the company’s direction towards building a stronger, consumer-focused healthcare strategy, while optimizing resource allocation for sustainable growth.

CVS currently trades at $53 and pays a dividend of 66 cents per share, a yield of 5.00%.

Energy

Exxon Mobil to Cut 400 Jobs in Texas Following Pioneer Acquisition

Exxon Mobil is set to eliminate nearly 400 positions in Texas following its acquisition of shale producer Pioneer Natural Resources. According to a filing with the Texas Workforce Commission, the company will reduce its workforce by 376 positions in Irving, Texas, and 18 in Midland.

As part of the merger, approximately 1,900 Pioneer employees were offered jobs, with most accepting the offers. Despite this, the company stated that its employment strategy remains unchanged, emphasizing that the success of the merger relies on retaining Pioneer's skilled workforce.

Under U.S. labor law, the company is required to notify employees in advance of job cuts. Exxon has outlined a phased approach to the layoffs, with 110 employees to be let go by the end of 2024. An additional 178 positions will be eliminated in 2025, and the final 100 job reductions are expected in 2026.

This restructuring effort follows the completion of Exxon's deal with Pioneer and aims to streamline operations as the company integrates its new acquisition into its broader business strategy.

XOM currently trades at $119 and pays a dividend of 99 cents per share, a yield of 3.32%.

Tech

Cisco Expands AI Focus with New Products and Infrastructure Plans

Cisco is making a significant push into the AI space with the launch of new products designed to meet the growing demand for AI-driven infrastructure. At its Partner Summit in Los Angeles, Cisco introduced a high-density GPU server aimed at customers training large language models, along with "AI PODS," which are tailored for inferencing—helping AI models analyze new data.

Both products are powered by Nvidia's accelerated computing, enabling them to handle the heavy demands of AI workloads. Cisco’s CEO has emphasized that the company is just beginning to unveil its AI-focused initiatives, marking the start of a series of announcements in the AI infrastructure sector.

These moves come as Cisco has seen a rise in its stock price, driven by a strong order book with some of the largest hyperscalers in the industry. While its stock had underperformed over the past year, recent positive earnings reports and growth in networking sales have reignited investor interest. Cisco's strategic push into AI, alongside its $28 billion acquisition of Splunk, positions the company to play a crucial role in the evolving AI infrastructure landscape, echoing its pivotal role during the rise of the internet in the early 2000s.

CSCO currently trades at $57 and pays a dividend of 40 cents per share, a yield of 2.78%.

MSI increased its dividend payout to $1.09 per share, an increase of 11%. Its new forward yield is 0.88%.

NKE upped its dividend payout to 40 cents per share, an increase of 8%. Its new forward yield is 2.11%.

POWI boosted its dividend payout to 21 cents per share, an increase of 5%. The new forward yield of POWI is 1.28%.

DHT decreased its dividend payout to 22 cents per share, a cut of 18.5%. Its new forward yield is 9.4%.

TECK dropped its dividend payout to 9 cents per share, a cut of 85%. Its new forward yield is 0.8%.

EGY shrunk its dividend payout to 6 cents per share, a cut of 0.8%. Its new forward yield is 4.6%.