| Heavy Construction Machinery Stock is Building a Dividend Fortress |
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| Hello and welcome to Dividend Brief, the 2-times-weekly newsletter focused on dividend investing. | Today, we will look into Morgan Stanley, Pfizer, and McDonald's, 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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| | | | Investment Banking | Morgan Stanley Floats $5B xAI Deal Without Risking a Dime | | Morgan Stanley (NYSE: MS) is testing investor appetite with a bold $5 billion debt package to fund Elon Musk's AI startup xAI. The offering includes bonds and two loans, with interest rates as high as 12%. However, Morgan Stanley is not putting any of its own capital at risk; it's a "best efforts" deal that depends fully on investor demand. | This move signals caution. Banks are still stung from Musk's $44 billion Twitter deal, where lenders were left holding billions in unsold debt for years. Morgan Stanley's structure, with no guarantees and no commitments, shows it's taking a different approach. The bank is simply acting as a channel, not a risk-taker. | For investors, this deal raises important questions. Morgan Stanley's role demonstrates its continued close ties to Musk while also illustrating how it's managing that exposure. Backing xAI's debt may unlock advisory and future equity deal fees, but it comes with political noise, including | Musk's growing influence and regulatory uncertainty. Some investors may view this as a high-risk, high-reward opportunity, while others may see red flags. | What matters now is whether the market bites. If the $5 billion package is absorbed smoothly, it could reinforce Morgan Stanley's leadership in tech financing. If demand is soft, it may signal fatigue with Musk's ventures. | The offering also adds to a larger trend of banks moving cautiously in a tough economy. Big-name, high-risk deals are no longer a sure bet. Morgan Stanley wants the upside but none of the exposure. | MS currently trades at $133.00 and pays a dividend of $3.70 per share, a yield of 2.79%. |
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| | Pharmaceuticals | Pfizer Moves to Strengthen Cancer Drug Portfolio With New Global Rights | | Pfizer (NYSE: PFE) signed a global licensing deal for SSGJ-707, a dual-target cancer drug developed by Chinese company 3SBio. The agreement gives Pfizer exclusive rights to develop and sell the drug outside China. 3SBio will retain rights within its home market. | SSGJ-707 is a bispecific antibody designed to block PD-1 and VEGF, two major targets involved in tumor growth and immune resistance. The drug is currently in clinical trials for several types of cancer, including lung, colorectal, and gynecological tumors. Pfizer will take over development and handle global commercialization. | For long-term investors, this deal could be a smart bet on Pfizer's next growth wave. The company has faced slowing revenue growth after the pandemic windfall, and this licensing move shows it is rebuilding its pipeline in high-potential areas, such as oncology. | Instead of betting on a single early-stage asset, Pfizer is using licensing as a lower-risk way to expand its cancer portfolio. | The strategy also shows Pfizer's continued push to tap into global innovation without overextending on expensive M&A deals. Collaborating with 3SBio gives it a foothold in Asia-backed biotech science without the complexity of acquiring a foreign company outright. | If clinical trials show strong results, this could eventually lead to a global rollout of SSGJ-707 under Pfizer's brand. Investors will watch closely for trial updates and any signs of fast-tracking by regulators. | PFE currently trades at $25 and pays a dividend of $1.72 per share, a yield of 6.98%. |
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| | | | Consumer | Pricing Pressure and Customer Drop-off Hit McDonald's Hard | | McDonald's (NYSE: MCD) is losing momentum where it matters most - its regular customers. This time, the problem isn't just competition or inflation. The brand cannot keep diners coming back. | Breakfast visits are down. Budget-conscious families are visiting less. Even loyal fans are starting to question whether their go-to meals are still worth the price. The company's years of price hikes appear to have reached a tipping point. | For long-term backers, the message is clear: McDonald's can't rely on legacy value. The emotional connection that once made it the default choice for millions is slipping. This isn't about a short-term earnings miss. It's about whether the brand can still lead in a fast-changing market. | Health trends, such as GLP-1 drugs, are also slowly but steadily shifting behaviors. People are not only eating out less, but they are also rethinking their food choices altogether. That's not a quick fix with discounts or limited-time offers. | McDonald's has faced challenges before and remained at the top. However, the pressure is now coming from all sides: pricing fatigue, lifestyle shifts, and brand fatigue. For anyone paying attention, this is more than a soft quarter. It's a warning shot. | MCD currently trades at $302.00 and pays a dividend of $7.08 per share, a yield of 2.35%. |
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| | Dividend Stocks Worth Watching | EOG Resources (NYSE: EOG) recently raised its dividend enough to yield 3.46% forward, having had more than 20 years of consecutive increases after spinning off from Enron in 1999 (talk about good timing!). The company's shale operations provide steady, predictable oil sources that help shield it from wider energy sector shocks. | Vail Resorts (NYSE: MTN) may have seen the end of 2025's ski season, but that isn't slowing down its 5.67% forward yield. The company's increased inroads into casino segments should help boost the stock in the long run, while existing resort and lodging properties assure continued cash flow. | CNH Industrial (NYSE: CNH) is a heavy machinery heavyweight, having gained 21% over the past year and generating a 2.02% forward yield. The company benefits from increased emphasis on domestic and on-shore manufacturing, making it a strong long-term play to bet on American industry. | | Dividend Increases | | | CASY increased its dividend payout to 57 cents per share, a 14.0% rise. Its new forward yield is 0.52%. | GRMN expanded its dividend payout to 90 cents per share, a 20.0% increase. Its new forward yield is 1.74%. | FDX improved its dividend payout to $1.45 per share, an increase of 5.1%. Its new forward yield is 2.61%. |
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| Dividend Decreases | | | | | SBR lowered its dividend payout to 42.65 cents per share, a cut of 4.7%. Its new dividend yield is 7.81%. | ULVM slashed its dividend payout to 16.4 cents per share, a cut of 1.0%. Its new dividend yield is 2.31%. | CAFG decreased its dividend payout to 1 cents per share, a cut of 67.9%. Its new dividend yield is 0.15%. |
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| | Bull Market Picks (Sponsored) | | | The "Magnificent 7"—Apple, Microsoft, Amazon, Nvidia, Meta, Alphabet, and Tesla—have led the tech charge. But now, the upside may be limited. | A new group of tech companies is emerging, with similar fundamentals: global reach, strong balance sheets, and investor-friendly valuations. | These are being called the Next Magnificent 7, and a new report reveals each one—for free. | This is an opportunity to discover which overlooked stocks could become the next market giants while they're still flying under Wall Street's radar. | Click here to claim the free report: "These 7 Stocks Will Be Magnificent in 2025" | (By clicking the link above, you will get this free report and a free subscription to MarketBeat's daily email newsletter. You are also agreeing to the terms of our Privacy Policy. Unsubscribe at any time.) |
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| | Upcoming Dividend Payers | KO's ex-dividend date for its upcoming $051 payout is on 6/13/25. | META's ex-dividend date for its upcoming $0.53 payout is on 6/16/25. | UNH's ex-dividend date for its upcoming $2.21 payout is on 6/16/25. | | Everything Else | MCD's new menu items may not help its flagging sales, though its current 2.4% forward yield seems safe (for now). Disney and Universal are coming after Midjourney, alleging copyright infringement within its image-generating AI models. "COW" might be the new Magnificent 7, as its cash-flow-focused components (Costco, O'Reilly Automotive, and Walmart) enjoy general stickiness even in a shaky economy. Lockheed stock is struggling after F-35 order rates dropped. Mortgage demand is finally ticking upward (a late start to the strong Spring season), which should boost homebuilder and supplier dividend stocks like Lowe's, Home Depot, and PulteGroup.
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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
DividendBrief.com |
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