Smart Dividend Portfolio Edition: Capital Rewards
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Dear Investor,
Welcome to this edition of TipRanks’ Smart Dividend Portfolio & Newsletter.
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Market-Moving News: Jan 26, 2026
U.S. stocks finished the week mixed as gains in technology shares helped offset weakness in financial stocks and rising rate pressure. The Dow Jones Industrial Average (DJIA) fell 0.58% to $49,098.71, the S&P 500 (SPX) ended nearly flat, up 0.03% to $6,915.61, and the Nasdaq 100 (NDX) outperformed, rising 0.34% to $25,605.47.
Meanwhile, interest rates continued to move higher. The 10-year Treasury yield climbed to about 4.23%, reflecting steady inflation concerns and caution ahead of earnings. In commodities, oil (CL) gained 2.78% to $61.24 per barrel as energy demand expectations firmed, while gold (XAUUSD) rose 0.7% to $4,982.50 as investors balanced risk exposure. Bitcoin (BTC) slipped 0.61% to $89,551 as digital assets paused after recent gains.
Turning to technology, this week highlighted a growing divide inside the AI trade. On the one hand, chip and hardware names benefited from supply constraints and near-term demand. On the other hand, large platform companies faced questions around spending and timing of returns.
Intel Corporation (INTC) was a clear example of how fast sentiment can turn. The stock dropped 17% after the company guided toward breakeven earnings for the first quarter and warned of yield issues and supply limits. The weak outlook overshadowed a fourth-quarter beat and reinforced investor concern that its turnaround will take longer than expected.
At the same time, Advanced Micro Devices (AMD) extended its rally, rising for a ninth straight session. Investors viewed Intel’s challenges as an opening for AMD to gain more share in the CPU market, especially as demand remains tight. Nvidia Corporation (NVDA) also moved higher after reports that Chinese authorities will allow leading firms to move forward with plans to import its H200 chips, easing fears of another sudden demand shock.
Meanwhile, the broader market reflected this rotation. The Nasdaq 100 erased its losses from last week’s tariff concerns and ended the period higher, while the Russell 2000 dropped and broke a long stretch of outperformance versus the S&P 500.
Beyond semiconductors, several company-specific stories stood out. Microsoft Corporation (MSFT) gained 3.28% after announcing Rho alpha, its first robotics AI model built from its vision-language systems. Investors welcomed the move as another step toward practical AI products tied to future revenue.
Meta Platforms (META) rose 1.72% as attention shifted toward its upcoming earnings and whether management can outline clear paths to growth from its AI investments. Analysts have stressed the need for stronger top-line signals tied to engagement and monetization.
On the downside, Capital One Financial Corporation (COF) fell 7.56% after missing earnings expectations and announcing a $5.1 billion deal to buy startup Brex, which raised questions around integration and execution risk.
Outside equities, political headlines also drew attention. President Donald Trump filed a $5 billion lawsuit against JPMorgan Chase & Co. (JPM) and CEO Jamie Dimon, alleging politically motivated debanking. JPMorgan said the claims have no merit, though the case added pressure to financial shares during the week.
Looking ahead, the market’s focus will shift almost entirely to earnings from the AI hyperscalers. Meta Platforms and Microsoft report results on Wednesday, with Apple (AAPL) and Alphabet (GOOGL) later in the week. Investors will be watching for updates on AI spending, cloud demand, and whether heavy investment is starting to translate into steadier revenue growth.
Morgan Stanley cautioned that Meta will need to show clearer long-term drivers tied to AI products, messaging, and engagement tools to support its valuation. Taken together, these reports may help reset expectations around whether hyperscalers can balance massive AI spending with dependable profits.
In short, next week’s results may determine whether investors rotate back into megacap tech or continue favoring the narrower parts of the AI supply chain that have benefited most from shortages and pricing power so far in 2026.
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This Week’s Quality Dividend Stock Idea
PNC Financial Services Group (PNC) is a U.S.-based diversified financial services company providing retail and business banking, asset management, and corporate and institutional banking solutions. Its operations span consumer deposits and lending, commercial and real estate finance, treasury management, and investment management through PNC Asset Management. PNC is one of the largest regional banks in the United States, with a strong presence across the Midwest, Northeast, Southeast, and Mid-Atlantic regions.
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Banking Blueprint
PNC Financial Services Group traces its origins to 1845, when the Pittsburgh Trust and Savings Company was founded to support the rapidly industrializing economy of western Pennsylvania. Over the following century, the bank expanded alongside the region’s steel, manufacturing, and energy industries, building a durable commercial banking franchise focused on middle-market and corporate clients. The modern PNC organization emerged in 1983 from the merger of Pittsburgh National Corporation and Provident National Corporation of Philadelphia, creating one of Pennsylvania’s largest banks and establishing a platform for broader regional growth.
Throughout the 1990s and early 2000s, PNC pursued a disciplined consolidation strategy, using targeted acquisitions to expand across the Midwest and Mid-Atlantic while maintaining a conservative risk profile. A pivotal moment came during the 2008 financial crisis with the acquisition of National City Corporation. The transaction roughly doubled PNC’s size, significantly expanded its deposit base, and strengthened its Midwest presence. The integration was executed with relatively limited credit deterioration as well, enabling PNC to emerge from the downturn with enhanced earnings power.
In the years that followed, PNC shifted its emphasis toward efficiency, technology investment, and deeper client relationships. The bank broadened its corporate and institutional banking capabilities, strengthened asset management and capital markets through its Harris Williams advisory platform, and built a national digital retail franchise without adopting a coast-to-coast branch strategy. These initiatives supported steady margin improvement, rising fee income, and higher returns on tangible equity.
Over the past decade, acquisitions have remained central to PNC’s long-term growth strategy, particularly in expanding fee-based and advisory businesses. In 2017, PNC acquired Fortis Advisors to enhance shareholder-focused merger advisory services and The Trout Group to add investor relations advisory expertise. In 2019, it purchased Sixpoint Partners, a private equity advisory firm that was fully integrated into Harris Williams in 2023, further extending its advisory reach. The most transformative transaction was the acquisition of BBVA USA Bancshares in June 2021, which positioned PNC as the fifth-largest U.S. bank by assets at the time. The deal expanded PNC’s footprint across high-growth Sun Belt markets, including Texas, Colorado, Arizona, and parts of the Southeast, while adding substantial low-cost deposits and operating leverage that materially lifted earnings. In 2023, PNC further strengthened its private equity and alternative investment financing platform by acquiring a nearly $17 billion capital commitments portfolio from Signature Bridge Bank, deepening relationships with financial sponsor clients.
That expansion continued in January 2026, when PNC completed the $4.2 billion acquisition of FirstBank Holding Company. The transaction added approximately $26 billion in assets and reinforced PNC’s presence in Colorado and Arizona. The deal involved the issuance of about 13.9 million shares and reduced the CET11 capital ratio by roughly 40 basis points, in line with expectations. Following the acquisition, PNC expects its CET1 ratio to settle in the 10.2%–10.3% range, maintaining a solid capital buffer. Integration is progressing as planned, with systems conversion scheduled for June 2026. Management expects the transaction to generate an internal rate of return of approximately 25% and to add about $1 per share to earnings in 2027, driven by operating efficiencies and revenue synergies from cross-selling PNC’s broader product suite, including capital markets and wealth management services.
Today, PNC operates as a national bank with strong regional franchises, supported by a diversified loan portfolio, expanding fee-based businesses, and a robust capital position. Its long-standing focus on disciplined acquisitions, organic growth, and technology-driven efficiency has enabled consistent earnings growth and rising shareholder returns across economic cycles.
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1-The CET1 ratio measures a bank’s core equity capital strength relative to its risk-weighted assets. It is a key regulatory metric introduced under Basel III to ensure banks can absorb losses during stress.
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Earnings Engine
PNC Financial Services Group operates a diversified banking model that generates earnings through a balanced mix of net interest income – the profit the bank earns from the spread between the interest it collects on loans and securities and the interest it pays on deposits and other funding sources – along with recurring fee revenues and disciplined expense management. At its core, the company gathers deposits at scale and deploys those funds into loans and securities, while also earning fees from advisory, asset management, and transaction-based services. This diversified structure reduces reliance on any single revenue stream and supports more consistent performance across economic cycles.
The foundation of PNC’s earnings is its large, diversified deposit base, which provides a relatively stable and low-cost source of funding. These deposits support a loan portfolio weighted toward commercial and industrial lending, commercial real estate, and relationship-driven, middle-market banking, with more modest exposure to consumer categories. This mix allows PNC to benefit from business investment and economic growth while maintaining conservative credit standards, as active balance-sheet management and disciplined loan pricing support net interest income across different interest-rate environments
Beyond lending, PNC generates a meaningful share of revenue from fee-based businesses. Asset management and wealth services provide recurring fees tied to long-term client relationships and asset balances. Capital markets and advisory income, led by Harris Williams, contribute higher-margin revenue linked to mergers and acquisitions, private capital activity, and corporate finance needs. Treasury management, card, and cash management services generate transaction-based fees that scale with client activity and deepen commercial relationships, offering capital-light sources of cash generation.
PNC’s business model is reinforced by strong operating discipline. The company invests steadily in technology, data, and automation to improve efficiency, strengthen risk controls, and enhance digital client engagement. These investments are paired with continuous improvement initiatives that reduce structural costs over time, allowing revenue growth to translate into expanding profitability. Importantly, PNC has pursued national scale selectively, focusing on markets and businesses where it can achieve density and attractive returns rather than pursuing size for its own sake.
Together, PNC’s diversified revenue streams, stable funding base, fee-driven growth engines, and efficiency-focused operating model support durable earnings power and consistent free cash flow generation. This structure provides the flexibility to reinvest in the franchise while sustaining long-term growth across changing economic environments.
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Capital Flywheel
Management emphasized that PNC’s capital strategy remains disciplined and consistent, supported by strong earnings generation and a balanced approach to returning capital to shareholders. The common equity Tier 1 (CET1) ratio is expected to trend toward about 10% over time, while return on tangible common equity (ROTCE), which reflects how efficiently profits are generated from shareholders’ tangible capital, is projected to rise above 18% annually as earnings and balance-sheet efficiency improve.
Management views the roughly 10% CET1 level as an outcome rather than a fixed target, as capital ratios naturally fluctuate with business and market conditions. Changes in interest rates influence loan growth, net interest income, and the market value of securities, while credit performance affects how quickly earnings build or consume capital. In addition, accumulated other comprehensive income (AOCI), which captures unrealized gains or losses on securities, can move meaningfully with bond prices and yield-curve shifts even though these changes are not realized in cash. As a result, PNC focuses on operating within a prudent capital range rather than managing to a single point estimate, balancing earnings growth, dividends, share repurchases, acquisitions, and regulatory requirements through the cycle.
Net interest income remains a key earnings driver. PNC expects to pay less interest on its deposits over time, even if the Federal Reserve keeps rates higher for longer. This is because of a favorable funding mix, meaning a large share of PNC’s deposits are lower-cost checking and savings accounts rather than high-rate time deposits, and because of pricing discipline, where the bank avoids aggressively raising deposit rates to compete for funds. As higher-rate promotional deposits roll off and customers hold more stable balances, PNC’s overall cost of deposits can decline.
If the Federal Reserve maintains higher interest rates for longer, loan yields may remain elevated while deposit costs will continue to fall. This dynamic supports margin stability, reduces earnings sensitivity to the timing of rate cuts, and underpins resilient core earnings in a prolonged higher-rate environment.
Finally, fee income growth is expected to be broad-based across business lines. Strategically, management views PNC as a national bank in terms of scale and customer reach, with sufficient investment already in place to compete effectively. Rather than pursuing large acquisitions in capital markets or wealth management, the focus remains on optimizing and scaling existing core businesses to drive sustainable growth and returns.
Record investment spending in 2026 underscores PNC’s focus on long-term growth and efficiency, with technology expenditures expected to rise by roughly 10% year over year. About 20% of incremental technology spending is being directed toward artificial intelligence initiatives aimed at improving productivity, risk management, and client service. These investments are being largely offset by savings from PNC’s continuous improvement program, which is delivering efficiencies through tighter headcount management, vendor rationalization, and greater automation in core operations, limiting near-term margin pressure.
Equally important for investors is how these investments are being funded. PNC’s continuous improvement program is generating offsetting cost savings through tighter headcount management, vendor rationalization, and greater automation in core operations. This means the bank can invest heavily in technology without materially pressuring margins in the near term. This balance suggests PNC is positioning itself to improve efficiency and returns over time while maintaining earnings discipline, which can support higher valuation multiples and more consistent capital returns.
On the credit front, PNC’s exposure to commercial real estate – a key area of investor focus across the banking sector – has largely stabilized, and management expects only modest growth in CRE balances in 2026. This reflects a cautious approach in a segment that has faced pressure from higher interest rates and softer property valuations. Management does not anticipate a broad-based economic downturn next year and views the primary risks as external, such as geopolitical developments, rather than stemming from weakening borrower fundamentals.
Regarding leveraged lending, loans to companies with higher debt levels or weaker credit profiles, often used for acquisitions or refinancings and priced at higher interest rates, recent regulatory guidance has become less prescriptive, giving banks greater discretion to assess risk on a deal-by-deal basis rather than adhere to rigid leverage thresholds. This added flexibility allows PNC to selectively originate well-structured transactions that are secured by collateral or positioned as “first-out” loans, meaning they are first in line for repayment if a borrower runs into trouble, while maintaining conservative underwriting standards.
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Steady Ascent
Over the past three years, PNC Financial Services has delivered steady top-line growth alongside stronger earnings expansion. Revenues increased at a CAGR of 2.6%, while EPS grew at a faster 6.2% pace, reflecting operating leverage and disciplined cost management. Higher net interest income, driven by lower funding costs, asset repricing, and deposit growth, was the primary earnings engine, complemented by rising noninterest income from capital markets, advisory, and asset management. Stable credit quality and controlled expenses further supported this performance.
That trajectory culminated in record results in the fourth quarter of 2025. Total revenue reached $6.1 billion, up 3% from the prior quarter and ahead of consensus expectations. For FY25, revenue increased to around $23 billion, representing a 7% year-over-year gain, supported by balanced contributions from both interest and fee-based businesses. Net income for the fourth quarter totaled $2 billion, translating to earnings of $4.88 per share and exceeding Street expectations. For FY25, net income increased to $7 billion, or $16.59 per share, representing a 21% year-over-year rise.
Net interest income totaled $3.7 billion in the fourth quarter, rising 2%, sequentially, driven largely by loan and deposit repricing. Net interest margin expanded to 2.84%, up 5 basis points from the third quarter. Noninterest income increased to $2.3 billion, up 3% quarter over quarter, and reached $8.7 billion for the full year, an 8% increase from 2024. Within fee income, capital markets and advisory revenues posted the strongest sequential growth, rising 13%, in the quarter, while asset management, brokerage, and lending and deposit services recorded modest gains. These increases were partly offset by an 8% sequential decline in mortgage banking revenue and a slight decrease in card and cash management fees.
Noninterest expense increased 4% sequentially to $3.6 billion in the fourth quarter and was up 2% for the full year. For the full year, expenses increased 2% year over year. Despite higher costs, pre-provision net revenue2 reached a record $2.5 billion in the quarter and increased 15% year over year, highlighting strong operating leverage. Credit costs remained well controlled, with a provision for credit losses of $139 million.
PNC ended the fourth quarter with loans of $328 billion, up 3% from a year earlier. Loan growth was led by commercial activity, with commercial balances rising $10 billion, or 5%, more than offsetting a $1 billion, or 1% decline, in consumer loans. On a spot basis, loans increased $5 billion, or 2%, sequentially, while investment securities declined 2% to approximately $142 billion.
Credit quality remained stable. Nonperforming loans accounted for 0.67% of total loans, improving from 0.73% a year earlier, even as balances increased modestly by $81 million, or 4%, sequentially. Delinquencies were 0.44%, unchanged year-over-year and only slightly higher sequentially, indicating limited borrower stress. The allowance for credit losses totaled $5.2 billion, equal to 1.58% of loans, and included a small reserve release in the fourth quarter.
Deposits increased to $440 billion, up 2% sequentially, supported in part by seasonal growth in commercial balances. Noninterest-bearing deposits rose to $95 billion, accounting for 22% of total deposits, while the average rate paid on interest-bearing deposits declined 18 basis points sequentially to 2.14%. Borrowings fell by $6 billion to $60 billion, reflecting improved funding conditions. AOCI improved to a negative $3.4 billion, a 16%, sequential improvement. Tangible book value rose to $112.51 per share, up 18% year-over-year. The CET1 ratio stood at 10.6%, or 9.8% including AOCI. Return on tangible common equity stood at approximately 18% at the end of the fourth quarter and averaged 16.4% for FY25.
Looking ahead, PNC’s 2026 outlook assumes U.S. real GDP growth of about 2%, unemployment around 4.5%, and two 25-basis-point rate cuts in July and September. Guidance reflects the combined performance of PNC and FirstBank. For 2026, average loans are expected to grow about 8%, or roughly 4% at legacy PNC, while total revenue is projected to rise around 11%, led by 14% net interest income growth and 6% non-interest income growth, including about $100 million from FirstBank. Noninterest expense is expected to increase about 7%, excluding $325 million of integration costs, producing positive operating leverage of roughly 400 basis points.
In the first quarter of 2026, average loans are expected to rise about 5%, net interest income about 6%, and total revenue between 2% and 3%. Net interest margin is expected to approach approximately 3% in the second half of 2026.
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2- Pre-provision net revenue (PPNR) measures a bank’s core profitability from its primary operations before accounting for credit loss provisions. It is calculated as net interest income plus noninterest income, minus noninterest expense.
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Yield Advantage
PNC has maintained a consistent dividend record since 1987 and has increased its payout steadily over the past 15 years, underscoring a long-standing commitment to shareholder returns. Over the last decade, the dividend has grown at an average annual rate of 12.8%. Supported by adjusted earnings, the company distributes roughly 40% of profits to shareholders, resulting in a dividend yield of about 3.11%, which is more than double the financial sector average of approximately 1.3%.
Capital returns remain a central element of PNC’s financial strategy alongside ongoing investments for growth. In the fourth quarter of 2025, the company returned $1.1 billion to shareholders, comprising $676 million in dividends and $400 million in share repurchases. Looking ahead to 2026, management expects to maintain an active buyback program, targeting $600 million to $700 million in share repurchases per quarter, while preserving the flexibility to allocate capital toward attractive growth opportunities as they emerge.
Over the past year, PNC’s shares have gained roughly 8%, reflecting solid earnings execution, continued strategic expansion, and a supportive macroeconomic backdrop. This appreciation has pushed the stock to trade above its own historical averages on several key valuation measures. In particular, PNC now commands a premium relative to its long-term historical averages on both non-GAAP trailing and forward price-to-earnings ratios, as well as on forward price-to-book, suggesting that investors are assigning higher value to its current earnings power and balance-sheet strength than in prior cycles.
When viewed against its closest peers, including U.S. Bancorp, Regions Financial, Truist Financial, and Fifth Third Bancorp, the valuation picture becomes more nuanced. On a trailing P/E basis, PNC sits at the higher end of the peer range, reflecting stronger recent profitability and investor confidence in near-term results. On a forward P/E basis, however, the stock falls into a more moderate valuation range, indicating that expected earnings growth partly offsets the current premium. Meanwhile, PNC screens in the lower end of the peer range on a forward PEG ratio, suggesting that, relative to its projected growth, the stock is not excessively priced.
Taken together, these metrics imply that while PNC is no longer inexpensive versus its own history, its valuation remains reasonable in the context of peers when growth expectations are factored in.
Analysts remain optimistic about PNC stock as the company’s record 2025 performance reflects sustained, diversified profitability and strong operating leverage, supported by solid pre-provision net revenue (PPNR), record revenue, a stable deposit base, and adequate capital that underpin reinvestment, dividends, and buybacks across cycles. At the same time, the accretive FirstBank acquisition meaningfully expands its footprint in Colorado and Arizona, creating cross-sell opportunities and a durable revenue runway if integration delivers the expected synergies.
Street consensus implies roughly 13% upside from current share levels, with more bullish forecasts pointing to potential gains of up to 30%. This optimism is reinforced by discounted cash flow analysis, which indicates that PNC shares may be trading at an estimated 41% discount to intrinsic value, suggesting meaningful valuation support for investors.
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Investing Takeaway
For income-oriented investors, PNC stands out as a bank with a long and dependable record of returning cash to shareholders, supported by a diversified earnings base and disciplined capital management. The company’s ability to generate recurring net interest income from a stable deposit franchise, alongside growing fee-based revenues, provides a durable foundation for sustaining and gradually increasing dividends across economic cycles. Importantly, management views dividends and share repurchases as core uses of capital, not residual ones, reflecting a shareholder-first philosophy.
At the same time, PNC’s conservative balance sheet, strong capital position, and cautious credit posture reduce the risk that income distributions will be disrupted during periods of stress. Ongoing efficiency initiatives and technology investments further strengthen cash-generation capacity, helping protect margins and support future payouts. Taken together, PNC offers income investors a compelling combination of reliability, growth potential in distributions, and downside resilience, making the stock well suited for portfolios seeking steady cash flow with the potential for long-term income compounding.
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Dividend Investor Portfolio
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Portfolio News
▣ ADP (ADP) is scheduled to report its fiscal second-quarter FY26 results on January 28, before the market opens, with analysts expecting topline growth to continue. Consensus estimates point to approximately $5.3 billion in revenue, roughly 7% above its Q2 FY25 numbers, driven by solid demand across Employer Services and PEO segments. The average Street forecast for EPS is ~$2.58, implying nearly 10% year-over-year earnings growth. ADP’s segment outlook includes roughly $3.6 billion in Employer Services revenue and $1.8 billion in PEO Services, plus an interest-on-funds contribution of about $310 million.
In the prior quarter, Q1 FY26, ADP posted $5.2 billion in revenue and $2.49 in adjusted EPS, each modestly above consensus, extending its streak of modest beats. Heading into this earnings cycle, investors will parse labor demand trends, pay-per-control growth, and margin performance for insight into the resilience of its recurring revenue model.
▣ Bank of Nova Scotia(BNS) stated that he bank’s 14.9% equity stake in U.S. regional lender KeyCorp is a meaningful earnings contributor, with the investment expected to generate approximately $59 million in net income in fiscal Q1. The contribution underscores Scotiabank’s effort to strengthen its exposure to the U.S. banking market following its exit from several Latin American operations. As Scotiabank narrows its footprint and concentrates on core markets, attention is increasingly focused on execution, capital deployment discipline, and the sustainability of earnings contributions from strategic investments such as KeyCorp.
▣ ExxonMobil (XOM) heads into its Q4 FY25 earnings release on January 30 with the Street watching how the oil major performed amid softer crude markets. Analysts peg adjusted EPS around $1.70 on ~$81 billion in revenue, underscoring resilience despite a weaker commodity backdrop.
Production momentum remains a core story. Exxon’s advantaged assets in the Permian Basin and Guyana have driven upstream volumes above 4.6 million barrels of oil equivalent per day (boe/d), while longer-term plans aim toward 5.5 million boe/d by 2030. Brent crude has traded near $60–$65 per barrel, pressuring upstream realizations but supporting consistent cash flow. Downstream and chemical margins are expected to reflect normalizing refining conditions, but robust structural cost savings and disciplined capital allocation, including roughly $28 billion in shareholder returns in 2025, could cushion results.
▣ Honeywell (HON) approaches its January 29 fourth-quarter earnings release with investors assessing whether the industrial conglomerate can maintain momentum from its recent strategic reset. The company is coming off a third-quarter earnings beat and raised FY25 guidance, signaling improving execution across its portfolio. For Q4, consensus expectations call for approximately $2.54 in EPS and about $10 billion in revenue, with close attention on segment margins as automation and building technologies deliver uneven performance trends.
Beyond core operations, legal developments add an important layer to the earnings narrative. Honeywell recently reached an agreement with Flexjet to resolve litigation related to aircraft engine maintenance disputes and extended its maintenance services agreement through 2035. While financial terms were not disclosed, Honeywell has previously indicated that a comprehensive settlement could include roughly $470 million in one-time cash payments, potentially weighing on reported Q4 sales by about $310 million and operating income by approximately $370 million.
▣ IBM (IBM) heads into its January 28 Q4 FY25 earnings with the market’s attention fixed on whether its pivot to software, AI and hybrid cloud is translating to meaningful top-line growth. Analysts currently model roughly $19.2 billion in revenue and $4.29 in EPS, reflecting near-double-digit year-over-year increases if achieved. IBM’s software segment, buoyed by offerings like watsonx.ai and automation platforms, is expected to remain a critical revenue driver, supporting margin expansion as infrastructure and consulting segments show mixed trends.
▣ In a high-profile legal escalation that grabbed investor attention last week, U.S. President Donald Trump filed a $5 billion lawsuit against JPMorgan Chase (JPM) and its CEO Jamie Dimon on January 22 in a Florida state court. Trump alleged that the bank improperly “debanked” him and his affiliated businesses by abruptly closing multiple accounts in February 2021 with only 60 days’ notice, disrupting access to banking services and harming operations. The complaint contends that the bank’s actions were driven by political and social motivations rather than legitimate business reasons and accuses the firm of placing Trump and others on an internal “blacklist,” a claim JPMorgan disputes. The bank has publicly stated the lawsuit has “no merit,” asserting it does not close accounts for political or religious reasons and only acts to mitigate legal or regulatory risk, setting up a contentious legal battle with broader implications for bank-client relations.
▣ Philip Morris International’s (PM) smoke-free strategy was in focus this week as company experts presented data to the U.S. FDA advisory panel urging support for ZYN nicotine pouches as a Modified Risk Tobacco Product (MRTP), a potential regulatory catalyst for U.S. growth. The MRTP designation, if granted, would legally allow PMI to communicate that switching completely from cigarettes to ZYN “reduces the risk” of major smoking-related diseases such as heart disease, lung cancer and chronic bronchitis. During the hearing, PMI highlighted data showing ZYN contains substantially lower harmful chemicals than combustible cigarettes and that adult smokers understand both the reduced risk and residual nicotine harm. The FDA’s own scientific reviewers noted the evidence supported the proposed claim, though the advisory panel’s recommendation remains nonbinding. A favorable advisory outcome could unlock broader U.S. growth by legally supporting risk-reduction messaging for smoke-free products, potentially reshaping PMI’s U.S. market narrative.
▣ Verizon (VZ) heads into its January 30 fourth-quarter earnings with a solid backdrop of modest growth and strategic transition. Analysts are expecting the company to report earnings of $1.05 per share on revenues of $36.1 billion.
Last quarter, Verizon reported about $21 billion in wireless service revenue and $33.8 billion in total operating revenue, alongside 306,000 broadband net additions, underscoring broadband as a growth driver. Investors will watch Q4 metrics for postpaid phone net adds, ARPA trends, and margin progression, especially under new CEO Dan Schulman’s efficiency push. Given Verizon’s commitment to debt reduction and its high dividend yield, market focus will also fall on guidance for 2026 revenue growth and capex, balancing network investment with shareholder returns.
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Recent Trades
None at the moment, although we are considering adding a stock to our portfolio when the market conditions allow for an attractive entry point. Stay tuned.
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Portfolio Attributes
| Dividend Portfolio Yield |
Expected Dividend Growth | Expected Annual Income |
| 3.92% | +5.47% | $6,112.66 |
| Yield-on-Cost Adjusted, Weighted |
Average Analyst 12-Month Growth Outlook | 10K Per Stock at the Time of Purchase |
Current Portfolio
| Name | EX-Dividend Date | Payment Date | Yield on Cost | Annual DPS |
| Automatic Data Processing (ADP) | Mar 13, 2026 | Apr 01, 2026 | 2.46% | $6.80 |
| Amgen (AMGN) | Feb 17, 2026 | Mar 10, 2026 | 3.27% | $9.52 |
| BlackRock (BLK) | Mar 09, 2026 | Mar 24, 2026 | 2.61% | $22.92 |
| Bank of Nova Scotia (BNS) | Apr 01, 2026 | Apr 28, 2026 | 5.98% | $3.21 |
| EOG Resources (EOG) | Apr 16, 2026 | Apr 30, 2026 | 3.06% | $4.08 |
| ExxonMobil (XOM) | Feb 12, 2026 | Mar 10, 2026 | 3.64% | $4.12 |
| Honeywell International (HON) | Mar 03, 2026 | Mar 17, 2026 | 2.39% | $4.76 |
| IBM (IBM) | Feb 10, 2026 | Mar 10, 2026 | 3.14% | $6.72 |
| JPMorgan Chase (JPM) | Apr 07, 2026 | Apr 30, 2026 | 3.43% | $6.00 |
| Kroger (KR) | Feb 17, 2026 | Mar 03, 2026 | 3.08% | $1.40 |
| Cisco Systems (CSCO) | Apr 07, 2026 | Apr 28, 2026 | 2.22% | $1.64 |
| PepsiCo (PEP) | Mar 10, 2026 | Mar 31, 2026 | 3.8% | $5.69 |
| Philip Morris (PM) | Mar 24, 2026 | Apr 14, 2026 | 6.06% | $5.88 |
| Qualcomm (QCOM) | Mar 05, 2026 | Mar 26, 2026 | 2.36% | $3.56 |
| VICI Properties (VICI) | Mar 27, 2026 | Apr 07, 2026 | 5.22% | $1.8 |
| Verizon (VZ) | Apr 13, 2026 | May 05, 2026 | 6.09% | $2.76 |
NameEX-Dividend DatePayment DateYield on Cost Annual DPS
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Click here for more stock market analysis from TipRanks Macro & Markets research analyst Yulia Vaiman
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Disclaimer
The information contained in this article represents the views and opinions of the writer only, and not the views or opinions of TipRanks or its affiliates and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy, or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment, and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices, or performance.
