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Hello and welcome to Dividend Brief, the 2 times weekly newsletter focused on dividend investing.
Today, we will look into Microsoft, Macy’s, and Charles Schwab, highlight a few dividend stocks worth watching, as well as share companies that are about to pay a dividend in the next few days.
Tech
Microsoft 365 Outage Disrupts Key Services Worldwide
Microsoft 365 users globally experienced disruptions on Monday, with many reporting issues accessing services like Outlook, Teams, and other applications. The problems included difficulties viewing emails, loading calendars, and opening tools such as PowerPoint, causing widespread frustration among users.
According to updates from the company, a recent system change was identified as the cause of the outages. Microsoft began rolling out a fix, reporting progress in restoring functionality to most affected users. However, the recovery process encountered delays, with some environments taking longer than anticipated to stabilize.
User reports on outage tracking platforms highlighted the scale of the incident, with issues peaking midday before gradually subsiding. The disruptions particularly impacted users reliant on Exchange Online and Teams calendar features for business operations.
Efforts to resolve the situation continued throughout the day, as Microsoft prioritized restoring full service. While a significant portion of the affected environments were reportedly back online by late afternoon, some users continued to face delays.
The outage underscores the challenges faced by cloud-based service providers in maintaining seamless operations for their customers. Microsoft remains focused on addressing lingering issues to ensure the stability of its services moving forward.
MSFT currently trades at $418 and pays a dividend of 83 cents per share, a yield of 0.79%.
Music
The music industry is on the verge of a massive transformation, with Goldman Sachs forecasting a $4.2 billion market emerging from the direct engagement between artists and fans.
At the heart of this shift is a company revolutionizing how music is monetized and consumed.
While streaming platforms have dominated for years, they’ve created barriers, preventing artists from directly connecting with their biggest supporters.
This company’s innovative technology bridges that gap, empowering artists to identify and reward superfans with personalized experiences—unlocking a new revenue stream in the process.
Protected by 15 granted patents, this company is leading a shift that could reshape the music landscape. Investors have a rare chance to get in ahead of this market’s rapid growth.
Retail
Macy's Investigates Accounting Issue and Delays Earnings Report
Macy's has announced preliminary third-quarter results while postponing its full earnings release due to an ongoing investigation into an accounting issue. The retailer discovered discrepancies in its delivery expense records, spanning several years, which led to an independent investigation. The matter involved improper entries by a former employee and has been resolved without affecting cash management or vendor payments.
During the third quarter, Macy’s reported a decline in overall sales and comparable store sales. Despite this, specific initiatives have shown promise, particularly in stores receiving additional investment and its stronger-performing brands like Bloomingdale’s and Bluemercury, which recorded growth in the period. The company has been focused on optimizing its portfolio, continuing efforts to close underperforming locations while enhancing remaining stores to drive future growth.
Additionally, Macy’s reported gains from asset sales and growth in its advertising business, though credit card revenue saw a year-over-year decline. The company is set to release its full results, including updated guidance, by mid-December. Executives remain focused on operational improvements and strategic initiatives to support performance during the critical holiday season.
Shares of Macy's have experienced a decline this year, underperforming broader market indices, reflecting challenges in the retail environment and investor concerns.
M currently trades at $16 and pays a dividend of 17 cents per share, a yield of 4.36%.
Finance
Schwab Eyes Growth and Innovation with Leadership Transition
Charles Schwab is preparing for a leadership transition as a new executive takes the helm in early 2025. The incoming leader has outlined a strategic vision focused on driving growth, supporting clients, and boosting operational performance. These priorities aim to align with evolving customer needs while ensuring the company continues to scale effectively.
Looking toward the future, the firm has expressed interest in offering cryptocurrency investments as part of its services. This move reflects a growing acknowledgment of digital assets' role in modern portfolios, allowing clients greater flexibility in managing their investments.
Another area of emphasis for the organization is engaging younger investors, particularly those under 40. The company views this demographic as essential for sustained growth and is committed to offering tools and resources that empower them to achieve financial success.
As the new leadership prepares to take charge, the company remains focused on innovation and aligning with customer priorities to maintain its competitive edge in the financial services industry.
SCHW currently trades at $81 and pays a dividend of 25 cents per share, a yield of 1.23%.
Billion Dollar Industry
Goldman Sachs projects the global music market will surpass $160 billion by 2030, but a deeper transformation is already underway.
The next major economic wave in music will be driven by direct-to-consumer engagement and monetization, redefining how artists connect with their fans.
Much like Amazon and Shopify revolutionized eCommerce by cutting out traditional retailers, a new platform is empowering artists to bypass middlemen like streaming services, social media platforms, and ticketing agencies.
This innovative infrastructure enables artists to fully monetize their audience, strengthen relationships with top fans, and build a loyal base of superfans—proven to spend up to 80% more than the average listener.
With 15 granted patents and cutting-edge technology, this company is poised to lead the way in powering this direct-to-fan revolution. For investors, this represents a rare opportunity to join an industry poised for massive growth and transformation.
Dividend Stocks Worth Watching
HSY continues to shine as a top confectioner with a number of delicious brands all pointing to sales growth. Its 3.12% dividend yield makes an investment that much sweeter.
AES is an energy company seeking to make a global impact through alternative means. Its positive outlook and 5.21% dividend yield are reasons to keep it on your radar.
UPS has paid a dividend since its IPO in 1999, which currently sits at 4.74%. Despite short-term shortcomings in previous years, there looks to be something here for the long haul.
Dividend Increases
CDW increased its dividend payout to 62.5 cents per share, an increase of 1%. Its new forward yield is 1.14%.
NGVC upped its dividend payout to 12 cents per share, an increase of 20%. Its new forward yield is 1.05%.
LZB bumped its dividend payout up to 22 cents per share, an increase of 10%. Its new forward yield is 2.1%.
Dividend Decreases
DLNG lowered its dividend payout to 6 cents per share, a cut of 21%. Its new forward yield is 4.38%.
CIB decreased its dividend payout to 80 cents per share, a cut of 5%. Its new forward yield is 10.3%.
TELX reduced its dividend payout to 5 cents per share, a cut of 16%. Its new forward yield is 7.84%.
Upcoming Dividend Payers
DHT is going to pay 22 cents per share to all shareholders of record on 11/29/24
LTC is going to pay a special dividend of 19 cents to all shareholders of record on 11/29/24
AFL is going to pay a special dividend of 50 cents to all shareholders of record on 12/02/24
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