| | Hello and welcome to Dividend Brief, the 2 times weekly newsletter focused on dividend investing. If you’re not looking for more emails from us, just click here to unsubscribe! | Today we will look into Pfizer, Walmart, and McDonald’s, highlight a few dividend stocks worth watching, and share companies that are about to pay a dividend in the next few days. |
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| | | | Healthcare | Court Ruling Puts Pfizer in Legal Spotlight Over mRNA Technology | | Pfizer (NYSE: PFE) is at the center of a legal dispute after a German court ruled that the company and BioNTech violated a patent in developing its COVID-19 vaccine. The case, brought by Moderna, claimed that Pfizer’s vaccine relied on mRNA technology patented by Moderna between 2010 and 2016. | The court determined that Pfizer must provide financial estimates of its vaccine-related profits and compensate Moderna for using the patented technology. The ruling comes after Pfizer and BioNTech argued that Moderna’s 2020 statement allowed them to use the technology. Still, the court sided with Moderna, which stated that its permission had been revoked in 2022. | Pfizer, a key player in the global pharmaceutical industry, developed the first-ever approved mRNA vaccine in 2020. The technology represented a significant advancement in vaccine development, enabling rapid production without the need for live virus cultivation. The ruling does not dispute Pfizer’s role in producing and distributing the vaccine but focuses on patent ownership related to its underlying technology. | The case highlights the legal complexities surrounding mRNA development and the competitive nature of pharmaceutical innovation. As Pfizer responds to the ruling, it faces financial and operational considerations. The outcome could set a precedent for future biotechnology patents and vaccine development disputes. | PFE currently trades at $27 and pays a dividend of 43 cents per share, a yield of 6.43%. |
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| | Retail | Walmart Seeks Supplier Concessions to Offset Rising Costs | | Walmart (NYSE: WMT) is negotiating cost reductions with its suppliers in China as it manages the financial impact of new U.S. import tariffs. The retailer has asked manufacturers of various goods, including kitchenware and apparel, to lower prices by up to 10% per round of tariffs. | Discussions with suppliers are ongoing, and responses vary depending on product categories and production costs. Some manufacturers have agreed to adjustments, while others, operating on thinner margins, face challenges meeting Walmart’s request. Walmart has a longstanding reputation for keeping purchase costs low, allowing it to offer customers competitive pricing. | Walmart sources a significant portion of its inventory domestically, but its global supply network relies on imports for key product categories. The latest tariffs have introduced cost pressures that could affect pricing strategies and supplier relationships. | The retailer continues to engage with suppliers to explore cost-saving measures while maintaining a steady supply of goods. As one of the largest retail chains in the U.S., Walmart’s purchasing decisions influence global supply chains, particularly for manufacturers in China and other major production hubs. | The company is assessing how to balance supply chain costs while ensuring consumer affordability. It remains in active discussions with its partners as tariff policies evolve and trade negotiations continue. | WMT currently trades at $92 and pays a dividend of 24 cents per share, a yield of 1.02%. |
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| | | | Restaurants | McDonald’s Integrates AI to Streamline Kitchen and Drive-Through Operations | | McDonald’s (NYSE: MCD) is rolling out AI-driven technologies across its 43,000 restaurants to improve operational efficiency. The initiative includes AI-powered drive-throughs, automated kitchen monitoring, and predictive maintenance systems designed to optimize restaurant performance and enhance the customer experience. | A key focus of the project is real-time equipment monitoring, which enables restaurants to detect potential issues before they disrupt operations. Sensors installed on kitchen equipment, including fryers and ice cream machines, will provide data to an AI system that helps restaurants anticipate maintenance needs and reduce downtime. | McDonald’s is also deploying computer vision technology to improve order accuracy. By using cameras to verify that orders are correctly assembled before being handed to customers, the company aims to reduce mistakes and improve service speed. | The company has been investing in automation for several years. In 2024, McDonald’s expanded its cloud computing partnership to enhance data processing capabilities across its global locations. The AI-powered voice ordering system is also being tested at select drive-throughs to further streamline service. | McDonald’s operates in a highly competitive industry where efficiency and speed are critical. By incorporating AI across its restaurants, the company is taking steps to modernize its operations and improve the consistency of service at scale. | MCD currently trades at $321 and pays a dividend of $1.77 per share, a yield of 2.21%. |
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| | Dividend Stocks Worth Watching | Thermo Fisher Scientific (TMO) recently increased its quarterly dividend payment by 10%, catching investor interest. While this alone is appealing, the company’s diverse portfolio bodes well for future gains. | American Electric Power (AEP) has remained a steady growth stock, reaching a new all-time high just last week. Shareholders also get to partake in a healthy 3.6% dividend yield. | Allegiant Travel (ALGT) has been trending downward from last month’s gains, but changes at the executive level could turn things around quickly. In the meantime, there’s always the 3.64% dividend yield to fall back on. | | Dividend Increases | | | WH grew its dividend payout to 41 cents per share, an increase of 7.9%. Its new forward yield is 1.57%.
ROST boosted its dividend payout to 40.5 cents per share, an increase of 10%. Its new forward yield is 1.19%.
BBY increased its dividend payout to 95 cents per share, an increase of 1.1%. Its new forward yield is 4.38%. |
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| Dividend Decreases | | | | | TD decreased its dividend payout to 73 cents per share, a cut of 2.7%. Its new dividend yield is 4.9%.
FRO lowered its dividend payout to 20 cents per share, a cut of 41.2%. Its new dividend yield is 4.98%.
HAFN decreased its dividend payout to 3 cents per share, a cut of 92%. Its new dividend yield is 2.89%. |
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| | | | Upcoming Dividend Payers | H is going to pay 15 cents per share to all shareholders of record on 3/12/25
CR is going to pay 23 cents per share to all shareholders of record on 3/12/25
HAS is going to pay 70 cents per share to all shareholders of record on 3/12/25 | | Everything Else | AT&T’s stock has experienced a significant surge, reflecting the growing strength and appeal of wireless companies in the current market. Altria has emerged as the leading dividend provider in the S&P 500, offering investors a substantial yield of nearly 8%. A $1,000 investment in Home Depot 44 years ago would have grown exponentially, showcasing the company's long-term value and consistent performance. Exxon Mobil: Exxon Mobil, among other energy companies, continues to be undervalued, effectively utilizing stock buybacks to enhance shareholder value. General Electric's three major divisions—GE HealthCare, GE Aerospace, and GE Vernova—have all resumed paying quarterly dividends, signaling the conglomerate's financial recovery and stability. |
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| | 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
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