Cruise Line Slashes Dividend 29%

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

Today, we will look into Pfizer, Sixth Street, and AbbVie, highlighting 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 Advances Treatment for HER2-Positive Breast Cancer with New Ibrance Trial Results

Pfizer has announced positive results from the Phase 3 PATINA trial, which evaluated the addition of Ibrance (palbociclib) to the standard first-line maintenance therapy for patients with hormone receptor-positive (HR+), HER2-positive metastatic breast cancer. The study found that the combination therapy significantly extended progression-free survival (PFS) by more than 15 months compared to standard treatment alone. This result marks a major advancement in treating this subtype of breast cancer, which has been challenging to address due to the development of resistance to conventional therapies.

Ibrance, already a leader in treating HR-positive, HER2-negative metastatic breast cancer, could now play a key role in HR+, HER2+ breast cancer as a maintenance therapy. Pfizer continues to lead in breast cancer treatment development, building on its success with Ibrance since its approval in 2015. While the overall survival data is still being analyzed, the safety profile of Ibrance remains consistent with previous studies, showing no new safety concerns.

This trial underscores Pfizer's commitment to addressing the needs of breast cancer patients, and the company is preparing to share these promising findings with regulatory authorities. As research progresses, Ibrance could become a crucial tool in managing HR+, HER2+ metastatic breast cancer, offering patients new hope for better outcomes.

PF currently trades at $25 and pays a dividend of 42 cents per share, a yield of 6.57%.

Lending

Sixth Street Strikes $4 Billion Deal with Affirm

Sixth Street has made a significant move in the consumer lending space by agreeing to purchase up to $4 billion in loans from buy-now, pay-later company Affirm. This transaction, structured as a forward-flow agreement, represents the largest capital commitment for Sixth Street to date. Through this deal, Sixth Street gains access to a large portfolio of loans, while Affirm benefits from off-balance sheet funding to support its future loan originations.

The agreement underscores the growing interest from private investment firms in the buy-now, pay-later sector. Nonbank lenders, including Sixth Street, have been actively acquiring consumer loans, tapping into the $5.2 trillion asset-based finance market, which spans various types of loans. This acquisition follows similar moves by other firms, further solidifying Sixth Street's position in this expanding market.

Sixth Street’s asset-based team has been consistently involved in high-profile acquisitions, including a previous deal to purchase Goldman Sachs’ GreenSky unit. With this new partnership with Affirm, Sixth Street is positioning itself as a leading player in the rapidly evolving financial technology space.

TSLX currently trades at $21 and pays a dividend of 52 cents per share, a yield of 9.8%.

Healthcare

AbbVie Acquires Nimble Therapeutics to Expand Immunology Pipeline

AbbVie has acquired Nimble Therapeutics for $200 million, expanding its immunology pipeline. Nimble, a private biotech company, specializes in oral peptide drugs targeting immune diseases such as psoriasis and inflammatory bowel disease. The acquisition strengthens AbbVie’s efforts to address immune system-related conditions, a focus of their recent strategic buyouts. Nimble's most advanced drug candidate is an oral treatment aimed at inhibiting IL-23, a protein linked to inflammation. This mechanism is similar to AbbVie’s existing injection drug, Skyrizi, which is used to treat immune diseases.

The oral form of Nimble’s IL-23 inhibitor is designed to combine the benefits of injectable drugs with a longer half-life. This innovation sets it apart from other available treatments, which typically require injection. AbbVie plans to use this acquisition to further their exploration of immune-modulating therapies, addressing unmet needs in the treatment of conditions like psoriasis and inflammatory bowel disease.

The deal also grants AbbVie access to Nimble’s advanced technology for creating and optimizing peptide-based drugs. With Nimble’s promising pipeline and AbbVie’s deep expertise in immunology, the companies hope to make significant strides in immune-related therapies. The transaction also includes additional funding tied to Nimble’s drug development progress.

ABBV currently trades at $174 and pays a dividend of $1.64 per share, a yield of 3.76%.

PFE increased its dividend payout to 43 cents per share, an increase of 2%. Its new forward yield is 6.78%.

EIX upped its dividend payout to 82.75 cents per share, an increase of 6%. Its new forward yield is 4.06%.

AVGO boosted its dividend payout to 59 cents per share, an increase of 11%. Its new forward yield is 1.31%.

BKE decreased its dividend payout to $2.50 per share, a cut of 9.75%. Its new dividend yield is 2.6%.

RCL dropped its dividend payout to 55 cents per share, a cut of 29%. Its new dividend yield is 0.9%.

DOOO lowered its dividend payout to 14.85 cents per share, a cut of 2.2%. Its new dividend yield is 1.2%.