AI May Drive Detroit's Next Profit Engine

A major automaker is turning its commercial fleet business into a software powerhouse, using AI to unlock recurring revenue and potentially smooth the earnings that support its dividend.

For decades, this company made its money selling vehicles.

Now it is betting that software and AI could become one of its most powerful profit engines. Are you buckled up for the ride? Read on for all the details.

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Capital Strategy

Salesforce Is About to Borrow Up to $25 Billion in a Single Move

Salesforce Inc (NYSE: CRM) is preparing to raise up to $25 billion through a bond sale that could happen as early as this week.

If completed, it would be the single largest debt offering in the company's history.

The money is tied to funding a massive share buyback program the company recently announced.

Borrowing to Buy Back

Most tech giants raising huge debt right now are doing it to fund AI infrastructure. Salesforce is going in a completely different direction.

The company believes its own shares are worth buying at scale, and it is willing to take on historic levels of debt to do it.

You think about what that signals internally. A company does not borrow $25 billion to buy its own shares unless leadership is deeply confident the business is undervalued.

A Different Kind of Bet

While every other tech giant borrows for data centers and chips, Salesforce borrows for itself. That confidence is either perfectly timed or dangerously aggressive.

You will know the answer soon enough. But a company willing to put $25 billion behind its own conviction is making a statement that is impossible to ignore.

CRM currently trades at $194 and pays a dividend of $1.76 per share, a yield of 0.90%.

Pharmaceuticals

The Weight Loss Race Has a New Contender, and It Is Not Who You Expected

AbbVie Inc (NYSE: ABBV) just released the first clinical data from its obesity drug program, showing nearly 10% weight loss in patients after just 12 weeks of treatment.

The drug takes a different approach than the blockbuster GLP-1 treatments already on the market, using a newer class of therapy that may cause fewer side effects.

AbbVie paid $350 million to acquire this drug last year. The early data suggest that investment is starting to look justified.

A Different Path Into the Same Race

The current obesity drug leaders built their dominance on GLP-1 technology. AbbVie is pursuing a different biological target called amylin.

The appeal is that amylin-based drugs may deliver meaningful weight loss with better tolerability, meaning fewer of the stomach-related side effects that cause some patients to quit GLP-1 treatments.

You think about the millions of patients who tried existing weight loss drugs and stopped because of side effects, and a gentler alternative with real results starts to look very valuable.

The Market Is Big Enough for More Players

Obesity treatment is projected to become one of the largest drug categories in history. Demand far exceeds the current supply, and patients want options.

You can see exactly why AbbVie spent $350 million to get into this race early. Even a slice of this market would be transformative for the company.

ABBV currently trades at $229 and pays a dividend of $6.92 per share, a yield of 3.02%.

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Consumer Goods

Is This the Biggest Reset PepsiCo Has Made in a Generation?

PepsiCo Inc (NASDAQ: PEP) is pulling nearly 20% of its U.S. products from shelves by early 2026 and cutting food prices across the board.

The company is also closing plants, shutting down manufacturing lines, and reducing its workforce to fund the transition.

This is not a seasonal adjustment. This is PepsiCo admitting the old strategy stopped working and taking dramatic action.

Fewer products, lower prices, and a leaner operation. That is the new playbook.

Too Many Products, Too High Prices

PepsiCo pushed prices aggressively over the past few years, and consumers pushed back.

Sales slowed, market share slipped, and shoppers started choosing cheaper alternatives. The product lineup had also grown bloated with items that were not pulling their weight.

You think about walking down a grocery aisle and seeing a dozen versions of the same snack. PepsiCo looked at that same shelf and decided one-fifth of it needs to go.

Rebuilding Around What Sells

PepsiCo is not shrinking. It is refocusing.

The products that survive the cut will get more investment, better pricing, and stronger marketing support. The savings from closures and layoffs fund the pivot.

You can see a company that spent years expanding its lineup and raising prices now reversing both strategies at once.

Whether that reset comes fast enough to win consumers back is the only question that matters now.

PEP currently trades at $159.00 and pays a dividend of $5.69 per share, a yield of 3.57%.

Dividend Stocks Worth Watching

McDonald's Corporation (NYSE: MCD) is preparing a new wave of low-priced menu offers as it works to reinforce its value credentials in an increasingly competitive fast-food market.

The company plans to launch a program internally called “McValue 2.0” in April, introducing a lineup of items priced at $3 or less alongside new $4 breakfast meal deals that bundle staples such as a McMuffin, hash browns, and coffee.

The initiative will replace a buy-one-add-one-for-$1 promotion rolled out in 2025 and is designed to attract price-sensitive customers who have been cutting back on spending.

Management is particularly focused on breakfast, where traffic from lower-income diners has softened.

The move follows roughly $85 million spent last year promoting discounted combo meals as the chain battles growing price competition from rivals such as Panera Bread and Applebee's, both of which have introduced aggressive deals of their own.

MCD currently pays a $1.86 dividend with a 2.29% yield.

Ford Motor Company (NYSE: F) is introducing a new artificial intelligence platform for its commercial fleet division as it pushes deeper into software-driven revenue.

The system, called Ford Pro AI, analyzes more than one billion data points each day from connected commercial vehicles, tracking factors such as vehicle health, fuel usage, routes, and driver behavior.

AI aims to help businesses reduce downtime, improve fleet productivity, and uncover operational efficiencies across their vehicle networks.

The launch highlights Ford’s broader strategy to expand the profitability of its Ford Pro business by layering software and digital services onto its large commercial customer base.

With more than 840,000 paid subscribers and strong recent growth, the unit is becoming an increasingly important earnings engine.

For dividend investors, the bigger story is the shift toward recurring, higher-margin software revenue inside a traditionally cyclical auto business.

If Ford Pro continues scaling its subscription ecosystem, it could help smooth earnings volatility and strengthen the cash flows that ultimately support the company’s dividend.

F currently pays a 15-cent dividend with a 4.96% yield. 

Best Buy Co., Inc. (NYSE: BBY) is leaning into the next big tech wave, positioning its stores as the place consumers go to explore and buy the new generation of AI-powered gadgets.

From AI-enabled glasses and advanced laptops to health rings and handheld gaming PCs, management says emerging tech categories are gaining real momentum even as the broader consumer electronics market has cooled.

The retailer is expanding in-store space for partners like Meta Platforms and highlighting devices such as Microsoft's Copilot+ PCs, betting that curiosity around AI will translate into fresh demand on the sales floor.

Behind the scenes, Best Buy is also deepening its presence in the AI ecosystem through partnerships with OpenAI and Google, helping consumers discover and even purchase products via AI-powered platforms.

For dividend investors, the story here is about reigniting growth in a mature retail category.

If AI gadgets become the next must-have consumer upgrade cycle, Best Buy could see stronger store traffic, higher-ticket product launches, and the kind of steadier cash flow that helps keep its dividend firmly supported.

BBY pays a 96-cent dividend, yielding 6.07%. 

Dividend Increases

WH has boosted its dividend to 43 cents, a growth of 4.88%. Its new yield is 2.33%.

SCVL has increased its dividend to 17 cents, an increase of 13.33%. Its new yield is 3.6%. 

KFY has raised its dividend to 55 cents, a boost of 14.58%. Its new yield is 3.55%.

JD has increased its dividend to $1.00, a 31.58% increase. Its new yield is 3.96%.

CNQ has raised its dividend to 62 cents, up 6.38%. Its new yield is 5.57%.

Dividend Decreases

TY has dropped its dividend to 28 cents, a reduction of 87.70%. Its new yield is 3.51%. 

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Upcoming Dividend Payers

CTAS’s ex-dividend date for the forthcoming 45-cent payment is 03/13/26.

TSN’s ex-dividend date for the forthcoming 51-cent payment is 03/13/26.

MVBF’s ex-dividend date for the forthcoming 17-cent payment is 03/15/26.

NEE’s ex-dividend date for the forthcoming 62-cent payment is 03/16/26.

HSY’s ex-dividend date for the forthcoming $1.45 payment is 03/16/26.

MCD’s ex-dividend date for the forthcoming $1.86 payment is 03/17/26.

Everything Else

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