| | 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 TD Bank, Coca-Cola, and Hyatt, highlight a few dividend stocks worth watching, as well as share companies that are about to pay a dividend in the next few days. |
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| | | | Banking | TD Bank to Divest Stake in Schwab Following Strategic Review | | Toronto-Dominion Bank has announced plans to divest its 10.1% stake in financial services firm Charles Schwab as part of a strategic review. The move comes after a significant regulatory settlement in the U.S., marking a shift in focus for the Canadian bank. | TD's stake in Schwab, acquired during the 2020 merger with TD Ameritrade, is valued at over $15 billion. The sale aligns with TD's broader efforts to address regulatory challenges and optimize its capital allocation strategy. Proceeds from the divestment will be used to fund share buybacks and bolster internal investments aimed at enhancing business performance and accelerating growth initiatives. | This decision follows a challenging period for TD, including a landmark penalty related to anti-money laundering compliance issues. The settlement included substantial fines and operational restrictions, prompting the bank to reevaluate its long-term strategy. With new leadership in place, TD is focusing on strengthening its core operations and rebuilding investor confidence. | As Schwab’s largest shareholder, TD’s exit represents a significant change in the financial landscape. While Schwab plans to repurchase a portion of the shares, TD is looking ahead to leverage the proceeds to solidify its position in a competitive market. The move underscores the bank’s commitment to prudent capital management and sustainable growth. | TD currently trades at $60 and pays a dividend of 73 cents per share, a yield of 4.86%. |
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| | Food & Drink | Coca-Cola Expands Beyond Soda With Fairlife's Rapid Growth | | Coca-Cola has quietly made a major impact in the milk market, building on the success of Fairlife, a brand that has reshaped how milk is perceived and consumed. Fairlife’s ultra-filtered milk offers higher protein, reduced sugar, and no lactose, making it a standout in Coca-Cola’s portfolio as it moves beyond soda into more health-conscious products. The brand’s growth has been exceptional, becoming one of the company’s fastest-growing assets. | Originally developed by Select Milk Producers, a dairy cooperative, Fairlife uses a unique filtering process to enhance milk’s nutritional value and taste. Since Coca-Cola acquired the majority stake in the brand, it has rapidly expanded, even during times of high inflation when many consumers traded down to cheaper alternatives. Fairlife’s creamier texture and health benefits have cemented its place in households across the U.S. and Canada. | Despite its success, challenges remain. Coca-Cola continues to rely heavily on soda for revenue, and the company’s diversification efforts face scrutiny from investors. Additionally, Fairlife must navigate shifts in leadership and expand its supply capacity to meet growing demand. Yet, with a strong foundation and continued investment, Coca-Cola aims to make Fairlife an even larger part of its future strategy in the competitive beverage market. | KO currently trades at $68 and pays a dividend of 49 cents per share, a yield of 3.03%. |
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| | | | Hospitality | Hyatt to Acquire Playa Hotels for $2.6 Billion to Expand Caribbean and Mexico Presence | | Hyatt Hotels is set to acquire Playa Hotels & Resorts in a $2.6 billion deal, including debt, as the company aims to expand its reach in the Caribbean and Mexico. The move comes as demand for high-end, all-inclusive resorts outside the U.S. rises, spurred by a stronger dollar attracting more American travelers. | Playa operates 24 luxury resorts in Mexico, Jamaica, and the Dominican Republic. Hyatt’s offer of $13.50 per share represents a 40.5% premium over Playa’s previous closing price before news of the acquisition talks. Playa’s shares saw a 2% increase in premarket trading on the news. | Having already owned a 9.4% stake in Playa, Hyatt expects the deal to finalize later this year. As part of the acquisition, Hyatt plans to sell off Playa’s owned properties, with expectations of generating at least $2 billion from these asset sales by 2027. This aligns with Hyatt’s asset-light model, where the company focuses on managing and franchising properties rather than owning them outright. | This acquisition marks a strategic push for Hyatt to strengthen its position in the growing luxury resort market outside the U.S. | H currently trades at $162 and pays a dividend of 15 cents per share, a yield of 0.36%. |
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| | Dividend Stocks Worth Watching | CVS Health (CVS) is back up 13% over the last month after a somewhat disappointing 2024 and screams value. Its 4.9% dividend yield also looks great right now. | WP Carey (WPC) recently reset its dividend but has steadily increased that number back to 6.32% since the turnaround. The company’s move away from the office niche to more stable niches should help carry that momentum forward. | Amcor (AMCR) has been on a hot streak as it expands its packaging platform to contain new industries. As it grows its reach, shareholders can also partake in a 5.11% dividend. | | Dividend Increases | | | NVO upped its dividend payout to 78.7 cents per share, an increase of 53.6%. Its new forward yield is 1.2%.
AZN increased its dividend payout to $1.03 per share, an increase of 110%. Its new forward yield is 2.0%.
IDCC boosted its dividend payout to 60 cents per share, an increase of 33%. Its new forward yield is 1.2%. |
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| Dividend Decreases | | | | | DHT decreased its dividend payout to 17 cents per share, a cut of 22.7%. Its new dividend yield is 8.8%.
RYN lowered its dividend payout to 27.25 cents per share, a cut of 4.4%. Its new dividend yield is 4.2%.
SU reduced its dividend payout to 40 cents per share, a cut of 2.4%. Its new dividend yield is 4.2%. |
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| | Upcoming Dividend Payers | HXL is going to pay 17 cents per share to all shareholders of record on 2/14/25
SRCE is going to pay 36 cents per share to all shareholders of record on 2/14/25
LCUT is going to pay 42.5 cents per share to all shareholders of record on 2/14/25 | | | | 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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