Customer Goods Company Raises Dividend 36%

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

Today, we will look into Estée Lauder, Comcast, 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.

Consumer

Estée Lauder Faces Global Market Shifts Amid Ongoing Stock Decline

Estée Lauder’s stock has experienced a notable decline, with a 35% drop over the past year, primarily due to weak demand in the Asian markets and shifting consumer preferences. The downturn began in early 2023, following underwhelming earnings that revealed substantial drops in both revenue and earnings per share. Estée Lauder’s challenges, particularly in China and other parts of Asia, reflect broader issues in the high-end beauty sector, with reduced interest in luxury products as consumers shift toward experiences rather than goods.

The company’s skincare segment, a major revenue source, has struggled to recover to its pandemic-era sales levels. In response, Estée Lauder has initiated discounts to manage excess inventory, although this approach has squeezed profit margins. The recently announced Chinese economic stimulus, designed to boost spending, is generating cautious optimism among shareholders who hope it might improve demand for Estée Lauder’s products.

Although new leadership adjustments in North America could impact sales positively, the outlook remains uncertain as consumer trends evolve. Estée Lauder’s future trajectory may hinge on global market shifts and strategic changes in its approach, particularly in its Asian markets, where it has seen the most volatility.

EL currently trades at $87 and pays a dividend of 66 cents per share, a yield of 3.0%.

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Entertainment

Comcast Considers Splitting Off Cable Networks Amid Industry Changes

Comcast is considering separating its cable networks division, according to President Mike Cavanagh during the company's third-quarter earnings call. He indicated that the potential move could result in "a new, well-capitalized company owned by our shareholders" that would encompass a strong lineup of cable networks. However, this separation would not include NBC or the streaming platform Peacock.

The cable networks portfolio includes popular channels like Bravo, E!, Syfy, Oxygen True Crime, and USA Network, as well as news outlets MSNBC and CNBC. Comcast faced a loss of 365,000 cable TV subscribers in the recent quarter, reflecting the broader trend in the media industry as consumers increasingly shift away from traditional pay TV packages toward streaming options.

Cavanagh acknowledged the challenges posed by this transition in video services and noted that the company is evaluating the best strategies for its cable assets. While specific details are not yet available, he assured investors that the company would provide updates as plans develop. Meanwhile, Comcast has been enhancing its Peacock service, which gained traction by exclusively broadcasting the Summer Olympics in Paris.

CMCSA currently trades at $44 and pays a dividend of 31 cents per share, a yield of 2.8%.

Tech

HP Amplify AI Launches to Enhance Partner Capabilities in the Age of Artificial Intelligence

HP Inc. has announced the launch of its HP Amplify AI program, tailored to empower business partners in the AI landscape with specialized training, certification, tools, and resources. This program provides a customizable approach, enabling partners to advance AI expertise, bolster productivity, and support customers in leveraging AI-driven tools effectively. The initiative includes access to the HP Amplify AI HUB, where participants can undergo tailored AI training and earn certification, with the program officially beginning worldwide on November 1, 2024.

The Amplify AI program offers a range of assets, including a training hub, certification opportunities, and tools designed to improve AI knowledge and sales skills. Through these resources, HP aims to strengthen partnerships by helping partners understand the benefits of AI devices and solutions, encouraging them to pass this knowledge to their customers. HP is also improving partner productivity by introducing AI-driven tools, like an AI Chatbot for the HP Partner Portal and an AI-powered pricing platform, simplifying interactions and speeding up pricing requests.

HP is expanding its partner ecosystem by enhancing the HP Business Partner Program, which now includes non-Amplify partners and distributors focused on the SMB market, making onboarding and brand visibility easier for participants.

HPQ currently trades at $36 and pays a dividend of 28 cents per share, a yield of 3.0%.

Political Power Plays

Free Report: Six of the Best Stocks to Buy Ahead of the 2024 Election

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UL grew its dividend payout to 48 cents per share, an increase of 36%. The company’s new forward yield is 2.90%

COP increased its dividend payout to 78 cents per share, an increase of 34%. The new forward yield of COP is 3.03%

MPC boosted its dividend payout to 91 cents per share, an increase of 10%. Its new forward yield is 2.51%

EL decreased its dividend payout to 35 cents per share, a cut of 47%. The new forward yield of EL is 1.61%

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

PRK lowered its dividend payout to 50 cents per share, a cut of 50%. Its new forward yield is 2.40%