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- This Healthcare Growth Leader is Investing Big in Scale and Science
This Healthcare Growth Leader is Investing Big in Scale and Science
A rare combination of pipeline ambition and manufacturing muscle is coming into focus for one healthcare giant.
By investing heavily in both next-generation science and domestic production, this strategy signals confidence that today’s growth engines still have a long runway ahead. Read on for all the details.
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Energy Infrastructure
Caterpillar Finds Its Second Engine
Caterpillar’s growth engine is shifting as AI-driven data center demand pushes its power and energy segment into the lead. Prime power systems designed for nonstop operation are now selling faster than traditional construction and mining equipment.
That is not a temporary spike tied to one project cycle. You are seeing Caterpillar move closer to the electrical backbone of the digital economy.
Data Centers Don’t Sleep
AI workloads require constant, reliable electricity, and many operators are choosing on-site generation over grid dependence. That has turned Caterpillar’s generators from backup insurance into mission-critical infrastructure.
This changes how Caterpillar fits into long-term spending trends. Instead of riding construction cycles, you now have exposure to multi-year digital and AI buildouts that behave more like utilities than job sites.
Strong Demand, Messy Costs
While demand is accelerating, tariffs and supply chain costs are complicating execution. Caterpillar must balance pricing discipline, margins, and investment while navigating a more expensive global operating environment.
This is where the transition gets tested. You can sell into the AI boom all day, but protecting profitability is what separates structural growth from a short-lived surge.
CAT currently trades at $667 and pays a dividend of $6.04 per share, a yield of 0.90%
Defense
Lockheed’s Factories Go to War Mode
Lockheed Martin (NYSE: LMT) is accelerating production across key weapons systems as defense demand shifts from episodic to permanent.
Global conflict and rising security commitments are turning replenishment into a constant requirement rather than a post-crisis reaction. This is not about one contract cycle. You are looking at a defense environment where readiness has no off switch.
Missiles Move to Center Stage
Agreements to sharply expand Patriot PAC-3 and THAAD interceptor output highlight how missile defense has become core infrastructure. Air defense is now treated like a utility for modern states, expected to be available at scale and without delay.
That shift favors companies that can produce reliably and quickly. If you follow defense closely, this is where procurement confidence compounds over decades, not quarters.
Factories, Not Forecasts
Lockheed is pairing higher output with reinvestment in its plants, suppliers, and spare capacity rather than squeezing short-term efficiency. That choice signals preparation for long-duration demand rather than a temporary surge driven by headlines.
Operational use of Lockheed platforms reinforces this strategy by embedding its systems deeper into doctrine and logistics. You do not build that kind of dependence without planning for sustained production and support.
(LMT currently trades at $631.00 and pays a dividend of $13.80 per share, a yield of 2.18%.)
Virtual Monopoly (Sponsored)
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Beverages
Coca-Cola Turns the World Cup Into a Global Feeling
The Coca-Cola Company (NYSE: KO) is using the FIFA World Cup as an emotional engine rather than a sports sponsorship. Instead of players or scores, the campaign is built around anticipation, shared moments, and collective buildup across roughly 180 markets.
That framing turns the tournament into a universal ritual Coke can own. You are not being sold football; you are being invited into the feeling around it.
Stretching the Moment for Months
By reworking a globally familiar song and rolling it out in phases, Coke is extending the World Cup well beyond kickoff. The strategy keeps the brand present before, during, and after matches, embedding it into everyday routines rather than isolated viewing moments.
The campaign connects emotion to action through QR codes, collectibles, and digital activations tied directly to packaging. Partnerships like Panini transform mass awareness into repeat engagement, measurable behavior, and first-party data.
Turning Hype Into a Data Engine
Coke is building an ecosystem where global storytelling feeds commerce, insight, and relevance, especially with younger consumers, while still reinforcing scale and familiarity for legacy audiences, and you can see how that tightens the loop between brand and volume.
Stepping back, this World Cup push shows how Coca-Cola is evolving sponsorship into infrastructure. The company is no longer just showing up at global events; it is designing them to run longer, feel deeper, and work harder for the business.
KO currently trades at $73 and pays a dividend of $2.04 per share, a yield of 2.76%.
Dividend Stocks Worth Watching
Eli Lilly & Company (NYSE: LLY) has stepped up its long-term growth push with a dual focus on pipeline expansion and manufacturing scale, as it backs both next-generation therapies and increased production capacity for obesity drugs.
The company recently signed a gene-editing collaboration worth up to $1.12 billion to broaden its pipeline beyond diabetes and weight loss, while also announcing plans to invest $3.5 billion in a new manufacturing plant in Pennsylvania. The facility will boost domestic production of obesity medicines, easing supply constraints and reinforcing Lilly’s leadership in one of the fastest-growing areas of global healthcare.
For investors, the combination is telling. With blockbuster cash flows funding both innovation and infrastructure, Lilly is positioning itself to defend market share, support future launches, and sustain earnings growth, strengthening the foundation behind its dividend and long-term capital returns.
Southwest Airlines Co (NYSE: LUV) is piloting a new era of growth with the company saying it expects profits to at least quadruple in 2026, supported by capacity growth of 2% to 3% compared with 2025.
The outlook comes as the airline completes one of the most significant overhauls in its history. This week, Southwest replaced its open seating model after 54 years with assigned seats, following other major changes, including charging for checked bags for the first time last year. Together, the shifts mark a decisive break from its half-century-old business model.
With structural changes now largely in place and earnings leverage building, Southwest is positioning itself for a materially stronger profit profile as these initiatives begin to flow through results. LUV pays an 18-cent dividend, yielding 1.48%.
Starbucks Corporation (NYSE: SBUX) says its turnaround efforts are heating up, with one in three consumers preferring the Seattle chain out of home. At its New York City investor day on Thursday, CEO Brian Niccol set new financial targets and a clearer playbook for the company's next phase of recovery.
By fiscal 2028, the chain projects global and US same-store sales growth of at least 3%, revenue growth of at least 5%, and earnings per share of $3.35 to $4.00. There are also plans to add more than 2,000 cafes globally in fiscal 2028, including 400 net new company-owned US locations, signaling confidence that store expansion can work alongside a tighter focus on execution.
The near-term strategy includes reintroducing tiers to the loyalty program, launching Energy Refreshers, and rolling out more efficient espresso machines. On profitability, Starbucks is targeting operating margins of 13.5% to 15% by fiscal 2028, supported by plans to grow sales and cut costs by $2 billion.
SBUX pays a 62-cent dividend, yielding 2.64%.
Dividend Increases
HWC has boosted its dividend to 50 cents, an increase of 11.11%. Its new yield is 2.91%.
FIS has increased its dividend to 44 cents, up 10.00%. Its new yield is 3.19%.
TRUX has lifted its dividend to 88 cents, a rise of 76.00%. Its new yield is 4.09%.
PCB has increased its dividend to 22 cents, up 10.00%. Its new yield is 4.0%.
MGYR has boosted its dividend to 10 cents, an increase of 25.00%. Its new yield is 2.28%.
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Upcoming Dividend Payers
PECO’s ex-dividend date for the forthcoming 11-cent payment is 02/03/26.
GGG’s ex-dividend date for the forthcoming 29-cent payment is 02/04/26.
WST’s ex-dividend date for the forthcoming 22-cent payment is 02/04/26.
CMCSA’s ex-dividend date for the forthcoming 33-cent payment is 02/04/26.
BK’s ex-dividend date for the forthcoming 53-cent payment is 02/05/26.
EBF’s ex-dividend date for the forthcoming 25-cent payment is 02/05/26.
Everything Else
Apple has reported its best-ever quarter of iPhone sales, along with record revenue and profits locked in for Q4 2025 following a strong holiday shopping season.
Home Depot will cut 800 jobs and mandate a full-time return to the office as it seeks to become more agile amid slowing sales.
General Motors is investing millions of dollars in staff training and upskilling in Kansas City as it prepares for three major vehicle launches at its Fairfax Assembly Plant.
Chevron says it could increase its oil production in Venezuela by as much as 50% in the next two years after the country passed legislation to loosen state control over the oil industry.
Geopark has agreed to acquire Frontera Petroleum International Holdings' Colombian assets. The equity value is estimated to be around $400m.
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