We want to increase our ownership of a portfolio stock that just increased its dividend

Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch—an actionable afternoon update just in time for the final hour of trading on Wall Street. THURSDAY MARKETS: Stocks are taking a breather after Wednesday’s big gains, especially the Nasdaq Composite and the narrower “Big Seven” index. Looking at wholesale inflation, or the Producer Price Index, in November, the benchmark 10-year Treasury yield topped 4.3%. Despite this, the market is still widely expected to cut interest rates by 0.25 percentage points at next week’s policy meeting, with the target range reaching 4.25% to 4.5%. What will happen in 2025 is still up for debate, though. We would not be surprised if the Fed makes a “hawkish rate cut” next week, as the Fed will continue to send out a message that it is in no rush to cut interest rates. Also, a historic day for the New York Stock Exchange as President-elect Donald Trump rang the opening bell. Jim Cramer had the opportunity to interview Trump live on the exchange. Here are some of Trump’s comments about the stock market and important trends like artificial intelligence and growing power demand. Bristol Dividend Increase: Bristol-Myers Squibb announced late Wednesday it would increase its quarterly dividend by 3.3%, bringing its annualized payout to $2.48. With the stock’s recent dip to around $56 per share and the stock’s current dividend yield of 4.4%, we’re keeping an eye on the drugmaker’s next acquisition, and we like the company’s innovative schizophrenia treatment. At about $56, the change leaves the stock trading only about 4% higher than where AbbVie’s rival schizophrenia drug failed to meet its primary endpoint in two mid-stage trials. Bristol Myers shares jumped from $54.14 to $59.82 in AbbVie’s Nov. 11 update, and the fact that the company gave back more than half of its gains looks like an opportunity. This is an important moment for Bristol-Myers Squibb, as it doesn’t look like it’s leading the way in schizophrenia, but it looks like it might hold its own for a while — at least in treating this This is true in terms of new approaches to disease. That’s a huge, financially profitable difference. Next up: Two companies in the portfolio reported earnings after the close on Thursday: Costco and Broadcom. For Costco, sales numbers are already known because the company reports them every month. That’s why we’ll be paying more attention to membership fee growth and trends, and how companies are investing to drive down prices. For Broadcom, the three things we focus on are: (1) AI sales, including customized chips and networks, (2) the recovery of its traditional semiconductor business, and (3) VMWare integration. On Wednesday, media reported that Apple was considering cooperating with Broadcom to develop customized artificial intelligence chips, sending Broadcom’s stock price soaring. But on Thursday, Broadcom shares gave up some of those gains after Bloomberg reported that Apple plans to replace Broadcom’s Bluetooth and Wi-Fi chips with in-house components next year. This somewhat contradicts a report from Bloomberg last Friday, which reported that Apple planned to replace Qualcomm modem systems but maintain the partnership. In this scenario, would Broadcom lose the wireless partnership but score a major win in artificial intelligence that could lead to higher profits over time? Time will tell. (See here for a complete list of stocks in the Jim Cramer Charitable Trust.) As a subscriber to Jim Cramer’s CNBC Investing Club, you will receive trade alerts before Jim makes his trades. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing a trade alert before executing the trade. The investment club information above is subject to our Terms and Conditions and Privacy Policy and our Disclaimer. No fiduciary duty or obligation shall exist or arise upon your receipt of any information relating to the Investment Club. No specific results or profits are guaranteed.

Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch—an actionable afternoon update just in time for the final hour of trading on Wall Street.

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