Kody's Dividends
Unlocking financial freedom with dividend growth investing
Tuesday, April 23, 2024
Expected Dividend Increases For May 2024
Tuesday, April 16, 2024
May 2024 Dividend Stock Watch List
As I'm writing this blog post on Saturday, April 6th, the temperature here in Central Wisconsin is expected to reach a high of 54 degrees Fahrenheit. Needless to say, that's quite nice for this time of year.
Without further ado, I will be sharing three of the dividend stocks at the top of my watch list for May 2024.
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Dividend Stock #1: Brookfield Asset Management (BAM)
Simply put, BAM is a proven and leading player in the growing alternative asset management industry. This should position the company for continued double-digit annual distributable EPS growth in the years ahead. As a bonus, the balance sheet is A-rated and arguably robust. BAM isn't a bargain at the current $41 share price (as of April 6, 2024), but it's trading close to fair value. For a company of its quality, this makes it an interesting buy to me. Thus, I'm considering upping my weighting from 1% to almost 2% next month.
Dividend Stock #2: McDonald's (MCD)
Basically, McDonald's loyalty program continued to grow in Q4 to over 150 million 90-day active users. The company thinks that it can grow to 250 million active users by 2027, which could provide even more stability and growth to its revenue/earnings base. The 2.5% payout is well-covered by free cash flow and shares are a solid value in my opinion at the current $267 price (as of April 6, 2024). That's why I am seriously considering doubling up my position next month to a nearly 1.5% weighting.
Dividend Stock #3: NextEra Energy (NEE)
The third and final stock on my watch list for next month is NextEra Energy (NEE). My investment thesis for NEE is similar to when I last covered it in January on Seeking Alpha.
Essentially, NEE has a track record of steady earnings growth and is a Dividend Aristocrat that has handed out 10% dividend hikes in recent years. The payout also appears to be quite sustainable. Lastly, the valuation could be interesting at the current $64 share price (as of April 6, 2024). This is why I'm interested in boosting my weighting from 0.7% to around 1.5% in May.
Concluding Thoughts:
Voila! Another watch list and another trio of world-class dividend growth stocks in my view. Barring massive rallies, I'm looking forward to increasing my stakes in these three great businesses next month.
Discussion:
Are any of BAM, MCD, or NEE on your watch list for May 2024?
If not, what stocks are on your radar for next month?
I appreciate your readership and welcome your comments below!