Transportation Provider Boosts Dividend 11%

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

Today, we will look into Johnson & Johnson, ExxonMobil, and AT&T, 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

Johnson & Johnson Reshapes Neuroscience Pipeline with Major Trial Cuts

Johnson & Johnson (J&J) is undergoing significant changes within its clinical development pipeline, particularly in its neuroscience division. Several trials have been discontinued, including a Phase II study of seltorexant in patients with probable Alzheimer's disease. This is part of a broader prioritization effort that has impacted multiple programs across the company, although specific details about this decision have not been disclosed.

The neuroscience area has seen the biggest cuts, with two Phase II studies and a Phase I program being eliminated. One of the more notable programs affected is the Alzheimer’s study involving seltorexant, a drug that had shown promise in treating major depressive disorder. The company had previously highlighted its potential to reach high sales figures, although these projections were tied to its use in depression rather than Alzheimer's.

Additional programs in Parkinson’s disease and bipolar disorder have also been cut, along with an early-stage psoriasis treatment. Outside of neuroscience, J&J recently halted the development of an epilepsy treatment due to a Phase II failure. Despite these cuts, the company has reported strong financial performance, driven by its oncology portfolio, particularly in treatments for multiple myeloma.

Ad

Need stock picks?

Join the best stock pick newsletter.

Click here to sign up!

Energy

ExxonMobil Eyes Sale of Bakken Shale Assets Amid Strategic Shift

ExxonMobil is exploring the sale of part of its assets in North Dakota's Bakken shale formation as it refines its portfolio to focus on higher-growth opportunities. This potential divestment follows the company’s significant acquisition of Pioneer Natural Resources earlier in 2024. As part of this restructuring, ExxonMobil has also announced workforce changes, including layoffs for a number of employees.

The sale could bring in a substantial amount, with reports suggesting it might exceed half a billion dollars. The assets under consideration include both operated and non-operated wells, along with undeveloped land, which could attract interest from companies looking to expand their presence in the region and increase production capacity. The sale aligns with Exxon’s ongoing strategy of regularly assessing its asset base to optimize returns.

Despite these planned sales, ExxonMobil remains committed to its shale operations in North Dakota as part of its broader business plan. In addition to this, the company is also evaluating the sale of conventional oil assets in the Permian Basin, further showcasing its strategic approach to portfolio management while maintaining focus on key production areas.

Tech

AT&T Completes Shift from TV, Sells Remaining DirecTV Stake

AT&T is finalizing its exit from the entertainment sector by selling its majority stake in DirecTV to a private equity firm. This move signals the telecom giant's shift back to focusing on its primary business operations, including wireless 5G and fiber networks. Years ago, AT&T acquired DirecTV with hopes of expanding its video subscriber base, but changes in the market, driven by the rise of streaming platforms, have significantly reduced the demand for traditional satellite TV services.

In an earlier move, AT&T had sold part of its stake in DirecTV, and now the company is selling off its remaining share. The sale is expected to be completed by the second half of 2025, but both sides have the ability to alter the timeline if necessary. This decision allows AT&T to fully concentrate on its connectivity services, which have become a higher priority in today’s market.

Meanwhile, DirecTV is taking steps to grow its business by acquiring another satellite-TV provider. This deal, which includes the assumption of significant debt, underscores the broader shift within the industry as traditional TV providers continue to consolidate amid increasing competition from streaming services.

Ad

Need stock picks?

Join the best stock pick newsletter.

Click here to sign up!

RPM increased its dividend payout to 51 cents per share, an increase of 11%. The new forward yield of RPM is 1.6%

CHCO increased its dividend payout to 79 cents per share, an increase of 11%. The new forward yield of CHCO is 2.7%

PAG increased its dividend payout to $1.19 per share, an increase of 11%. The new forward yield of PAG is 2.6%

TSQ decreased its dividend payout to 19.75 cents per share, a cut of 7%. Its new forward yield is 6.9%

EGBN decreased its dividend payout to 16.5 cents per share, a cut of 63%. Its new forward yield is 2.9%

ESLT decreased its dividend payout to 41 cents per share, a drop of 17%. Its new forward yield is 0.85%