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Fortune Global 500 Company Ups Dividends 19 Cents Per Share
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Hello and welcome to Dividend Brief, the 2 times weekly newsletter focused on dividend investing.
Today, we will look into Pfizer, Genesis Energy, and Domino’s, 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
Pfizer Faces Leadership Support Shift Amid Investor Scrutiny
Recent developments at Pfizer have sparked attention as two former top executives, who were initially reported to be supporting efforts for a strategic shift, have reversed their stance. The former leaders, previously linked to an activist investor group aiming to push for change at the company, have now publicly withdrawn their involvement. Instead, they expressed strong support for Pfizer’s current leadership and future direction.
These changes come amidst a period of stagnation in Pfizer’s stock performance, which has fueled ongoing speculation about the company's leadership stability. Despite rumors surrounding potential shifts, the internal sentiment within the company remains largely positive toward the current management.
The pharmaceutical giant faces challenges, including adjusting to decreased revenues from key pandemic-related products and high debt levels. Investors are closely monitoring the situation, with meetings between the company’s leadership and activist investors scheduled soon. The next phase for Pfizer will be critical as it works to navigate these pressures and restore confidence in its long-term growth strategy.
2024 US Election Stock Watch
Election cycles have the power to shake up the markets, with certain stocks making dramatic moves even before results come in.
In previous elections, some stocks jumped by as much as 49% in just one day, weeks before the new president took office.
This time around, the stakes are just as high. We've identified five key stocks that could benefit from the election’s uncertainty and are poised for big gains.
Don’t wait until the market shifts! Get the inside scoop on these potential election-driven movers and position yourself for success.
Energy
Genesis Energy Shows Resilience in Q2 Amid Growth and Challenges
Genesis Energy recently released its Q2 earnings report, highlighting solid cash flow and adjusted EBITDA performance. The distribution remains secure, with a coverage ratio of 2.05 times. While the company is well-managed and focused on cash generation, the stock price seems to reflect these positives, prompting a hold rating from my perspective due to a less attractive distribution yield compared to other investment options.
Genesis Energy operates as a growth-oriented master limited partnership, primarily involved in the midstream segment of the crude oil and natural gas industry, as well as natural soda ash production. Its operations include offshore pipeline transportation in the Gulf of Mexico and a diverse portfolio of assets, including pipelines and mining activities in Wyoming. The company reports that cash flows from operations have steadily increased, and management is committed to capital investments aimed at driving future growth.
While Genesis Energy faced a net loss for the latest quarter, management anticipates a significant rise in adjusted EBITDA over the next few years. The company's soda ash segment is particularly promising, given its applications in renewable energy technologies like solar panels and electric vehicle batteries. This positions Genesis Energy well for future growth, especially as demand for soda ash rises. However, ongoing capital expenditures are funded primarily through debt, resulting in a higher leverage ratio, which investors should monitor as the company continues to execute its growth strategy.
Consumer
Domino's Pizza Faces Mixed Signals Amid Resilient Fundamentals
Domino's Pizza has seen its stock experience ups and downs recently, which may leave investors feeling uneasy. Despite the challenges in the quick-service restaurant sector, the company’s operational performance has remained robust. Since late last year, shares have returned about 6%, placing it slightly above the average compared to peers during this tough period. After reaching highs of $533, the stock has since dipped to around $415 following its latest quarterly results.
Importantly, the underlying business remains strong, with management suspending short-term unit growth projections raising concerns about future sales. However, these concerns may be overstated, as the company's fundamentals continue to impress. Domestic same-store sales growth was 4.8% last quarter, with an overall increase of 5.2% for the first half of the year, indicating healthy consumer demand.
Domino’s success can be attributed to its effective franchise model, with significant profitability per store driving expansion. While international growth has faced some hurdles, the overall store count has risen, reflecting a positive trend in both domestic and global markets. With solid revenue growth and strong unit economics, the company is poised to continue delivering value for investors, despite the stock's recent volatility.
Gold
With gold pushing past $2,600 per ounce and showing no signs of slowing down, investors are lining up for the next big opportunity.
But in 2024, which gold stock is the one to watch?
This small-cap company is quietly making waves with millions of ounces of gold already confirmed at its flagship project in the U.S.
While Wall Street sleeps on this hidden gem, informed investors are jumping in early, seeing the massive potential ahead.
Drilling plans are ramping up, and the company is poised for explosive growth.
Dividend Stocks Worth Watching
V looks promising thanks to its history of yearly dividend increases and strong financial strength.
AAPL continues to grow its presence and revenue stream, despite only having a 0.44% dividend yield at present.
PG increased its dividend to $1.01 this spring, adding at least a few cents yearly for the past several years.
Dividend Increases
GEL increased its dividend payout to 16.5 cents per share, an increase of 10%. Its new forward yield is 4.5%
VZ boosted its dividend payout to 68 cents per share, an increase of 2%. Its new forward yield is 6.3%
ACN grew its yearly dividend payout to $1.48 per share, an increase of 13%. Its new forward yield is 1.8%
Dividend Decreases
WPP decreased its dividend payout to 95 cents per share, a cut of 40%. Its new forward yield is 3.6%
HMY lowered its dividend payout to 4 cents per share, a cut of 33%. Its new forward yield is 1.2%
MAIN dropped its dividend payout to 24 cents per share, a cut of 18%. Its new forward yield is 6.0%
Upcoming Dividend Payers
RSG is going to pay 58 cents per share to all shareholders of record on 10/15/24
INTU has its dividend of $1.04 scheduled to go out on 10/17/24
ORCL prepares to pass out its dividend of $0.40 to shareholders 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