Major Restructuring Could Affect This Company's Dividend

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

Today, we will look into Bristol Myers Squibb, Hershey’s, and Honeywell, highlight a few dividend stocks worth watching, as well as share companies that are about to pay a dividend in the next few days.

AI (Sponsored)

This Tiny Supplier Could Fuel Elon Musk’s Next Big Move

Elon Musk’s latest venture is poised to redefine a $9 trillion AI industry, and one under-the-radar company is at the center of it all.

This supplier, tied directly to Elon’s revolutionary tech, is expected to skyrocket—and with Musk’s big reveal scheduled for January 22nd, time is running out to get ahead of the news.

Tech investing expert Jeff Brown, known for calling winners like NVIDIA and Tesla, believes this opportunity could eclipse them all.

Before the market catches on, learn how this small company could lead the charge in AI's next wave.

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[Click Here for the Full Story Before January 22nd]

Healthcare

Bristol Myers Expands Cost-Cutting Plan to Support Growth Strategy

Bristol Myers Squibb is stepping up its cost-cutting initiatives, aiming to reduce expenses by $2 billion by 2027. This effort expands on a previous $1.5 billion reduction plan set for completion by 2025. These savings are designed to support investments in drug development and new therapeutic innovations, ensuring the company’s path to long-term growth.

The strategy comes as Bristol Myers prepares to address anticipated revenue declines from key treatments nearing the end of market exclusivity. The transition will be challenging, with older drugs facing increased competition from lower-cost generics. Additionally, the company’s revenue guidance for 2025 reflects a modest shortfall compared to market expectations, partly influenced by currency fluctuations.

Despite these pressures, the company delivered strong performance in the fourth quarter, surpassing projections for both revenue and adjusted earnings. Growth was driven by a robust portfolio of newer drugs, alongside continued demand for its leading blood thinner and other core treatments.

Bristol Myers remains focused on balancing operational efficiency with innovation to navigate evolving market dynamics. As it adapts to upcoming challenges, the company aims to leverage its research and development pipeline to sustain growth and meet future healthcare needs.

BMY currently trades at $60 and pays a dividend of 62 cents per share, a yield of 4.15%.

Consumer

Hershey Faces Profit Pressure as Cocoa Costs Surge

Hershey anticipates a challenging year ahead, projecting annual profits below market expectations due to rising cocoa costs. The price surge in cocoa, fueled by lower supplies from key regions, has heavily impacted production expenses for the confectionery industry. This marks the fourth consecutive season of cocoa shortages in West Africa, driven by unfavorable weather conditions.

Packaged food producers, including Hershey, have responded to escalating costs with price hikes. However, this strategy has only partially offset the financial strain. Hershey's forecast for 2025 earnings reflects this pressure, falling short of analysts’ predictions.

Despite these hurdles, Hershey experienced a boost in demand during the last quarter, with strong performance in its North American snack segment contributing to higher sales volumes. Elevated product pricing also played a role in sustaining revenue growth. Fourth-quarter sales saw significant improvement compared to the previous year, bolstered by strong consumer interest in salty snack offerings.

While the company’s quarterly earnings exceeded market expectations, the broader outlook remains cautious. Hershey’s ability to navigate the ongoing volatility in raw material costs will likely determine its financial performance in the months ahead. The combination of resilient demand and strategic adjustments will be crucial as the company contends with rising commodity challenges.

HSY currently trades at $146 and pays a dividend of $1.37 per share, a yield of 3.76%.

Elon’s Radical Plan (Sponsored)

The DOGE agenda (eight stocks to buy)

Every investor in America is trying to figure out what Musk will do in Washington, D.C. in the coming weeks.

One Boston based think tank – who has studied Elon’s work for decades – is stepping forward to share what they’ve found.

They believe his TRUE plan is far more radical than anyone realizes. It could change the way you live, work, get paid, and collect Social Security

...AND could make more people rich than all of Elon's previous ventures – PUT TOGETHER.

Full story here.

Travel & Hospitality

Expedia Resumes Dividends Following Strong Holiday Quarter

Expedia is back in the dividend game. The travel giant announced the reinstatement of its quarterly dividend, which signals confidence in its financial position and commitment to shareholder returns. The company had suspended its dividend in 2020 but is now resuming payouts at a higher rate, reinforcing its long-term stability.

This announcement follows a strong holiday quarter, during which Expedia reported higher-than-expected travel bookings. With global travel demand showing resilience, the company exceeded forecasts on both gross bookings and nights stayed, indicating that consumers continue to prioritize vacations and experiences. CEO Ariane Gorin credited Expedia’s operational execution and steady consumer demand as key drivers of the company’s success.

Investors reacted positively, sending Expedia’s stock higher following the announcement. The company was among the top gainers in the S&P 500, highlighting growing confidence in its ability to sustain growth and profitability. The reinstated dividend, scheduled for payout in March, further appeals to income-focused investors seeking stability in the travel sector.

With a solid financial performance and renewed shareholder payouts, Expedia’s latest earnings report has drawn increased attention from investors looking at long-term trends in the travel industry. The company’s ability to maintain growth amid shifting consumer preferences remains a key factor in its market position.

EXPE currently trades at $198 and pays a dividend of 40 cents per share.

MMM increased its dividend payout to 73 cents per share, an increase of 4.3%. Its new forward yield is 1.92%.

PRU boosted its dividend payout to $1.35 per share, an increase of 3.8%. Its new forward yield is 4.8%.

NYT upped its dividend payout to 18 cents per share, an increase of 38.5%. Its new forward yield is 1.29%.

CSWC dropped its dividend payout to 58 cents per share, a cut of 7.9%. Its new dividend yield is 10.1%.

APO decreased its dividend payout to 46.25 cents per share, a cut of 0.11%. Its new dividend yield is 1.1%.

OSCL shrunk its dividend payout to 40 cents per share, a cut of 27.2%. Its new dividend yield is 13%.

What’s Musk Planning? (Sponsored)

“A Maniacal Sense of Urgency”

A Boston based think tank believes we could be just days away from Elon Musk launching his next big venture.

It’s uniquely connected to his new role in the Department of Government Efficiency ("DOGE")… but could have a far reaching impact on every facet of life in America.

They’ve released a fascinating new documentary connecting all the dots on what they believe Elon’s planning and how it could impact your money.

Get the details here.

Everything Else

• Bank of America declared a quarterly dividend of $0.26 per share, payable on March 28, 2025.

• CVS Health announced a quarterly dividend of $0.665 per share, payable on February 3, 2025.

• Microchip Technology decided to maintain its high dividend by borrowing funds despite cash flow challenges.

• PepsiCo raised its dividend by 5% to $5.69 per share despite reporting lower-than-expected sales for the third consecutive quarter.

• Aramark raised its quarterly dividend from $0.095 to $0.105 per share, following a 5% revenue increase and strong adjusted profit.