Tuesday, February 7, 2023

Expected Dividend Increases for February 2023

As I'm writing this blog post on Saturday, February 4, Central Wisconsin just broke out of a lengthy cold snap. The temperature is currently a toasty 30 degrees Fahrenheit and similar temperatures should persist over the next week.

With that being said, it's time to take a look at the dividend raises that I received in January and preview the dividend hikes that I am anticipating for this month.

Actual Dividend Increases for January 2023

Dividend Increase #1: Enterprise Products Partners (EPD)

Enterprise Products Partners announced a 3.2% bump in its quarterly distribution per unit to $0.49. Across my 36 units of EPD, this lifted my net annual forward distributions higher by $2.16 due to the distribution announcement.

Dividend Increase #2: STAG Industrial (STAG)

STAG Industrial declared a 0.7% increase in its monthly dividend per share to $0.1225, which came in below my expectation of a 1.4% raise. My net annual forward dividends edged up by $0.21 across my 21 shares of STAG as a result of the dividend declaration.

Dividend Increase #3: ONEOK (OKE)

ONEOK increased its quarterly dividend per share by 2.1% to $0.955. Across my 17 shares of OKE, my net annual forward dividends moved $1.36 higher due to the dividend announcement.

Dividend Increase #4: WEC Energy Group (WEC)

WEC Energy Group declared a 7.2% hike in its quarterly dividend per share to $0.78. My net annual forward dividends increased by $1.68 across my eight shares of WEC as a result of the dividend declaration.

Dividend Increase #5: Kimberly Clark (KMB)

Kimberly Clark announced a 1.7% bump in its quarterly dividend per share to $1.18. This proved my prediction to be on the money. Across my four shares of KMB, my net annual forward dividends inched $0.32 higher due to the dividend announcement.

Dividend Increase #6: BlackRock (BLK)

BlackRock declared a 2.5% increase in its quarterly dividend per share to $5.00. This was well below my expectation of a 5.7% raise in the dividend. My net annual forward dividends moved up by $0.96 across my two shares of BLK as a result of the dividend declaration.

Dividend Increase #7: Comcast (CMCSA)

Comcast announced a 7.4% boost in its quarterly dividend per share to $0.29, which was my exact projection. Across my 25 shares of CMCSA, my net annual forward dividends increased by $2.00 due to the dividend announcement.

Dividend Increase #8: Energy Transfer (ET)

Energy Transfer declared a 15.1% hike in its quarterly distribution per unit to $0.305, which is in line with its pre-COVID distribution. My net annual forward distributions rocketed $13.76 higher across my 86 units of ET as a result of the distribution declaration.

Dividend Increase #9: Alliant Energy (LNT)

Alliant Energy announced a 5.8% increase in its quarterly dividend per share to $0.4575. This was below my forecast of a 7% raise in the quarterly dividend per share. Across my 13 shares of LNT, my net annual forward dividends were lifted by $1.30 due to the dividend announcement.

Dividend Increase #10: Air Products & Chemicals (APD)

Air Products & Chemicals declared an 8% hike in its quarterly dividend per share to $1.75. My net annual forward dividends surged $1.56 higher across my three shares of APD as a result of the dividend declaration.

Dividend Increase #11: Kinder Morgan (KMI)

Kinder Morgan announced a 1.8% bump in its quarterly dividend per share to $0.2825. Across my 52 shares of KMI, my net annual forward dividends rose by $1.04 due to the dividend announcement.

Dividend Increase #12: United Parcel Service (UPS)

United Parcel Service declared a 6.6% increase in its quarterly dividend per share to $1.62. My net annual forward dividends were lifted $2.00 higher across my five shares of UPS as a result of the dividend announcement.

Dividend Freeze: Realty Income (O)

Realty Income kept its monthly dividend per share in line with the previous dividend of $0.2485. This wasn't the 3.8% increase in the dividend that I was hoping for, but I still expect a mid-single-digit dividend increase from the company in the near future.

Expected Dividend Increases for February 2023

Expected Dividend Increase #1: Genuine Parts Company (GPC)

The first dividend raise that I'm forecasting in February will be from Genuine Parts Company. My best guess is that GPC will announce a 5.6% increase in its quarterly dividend per share to $0.945.

Across my six shares of GPC, my net annual forward dividends would surge higher by $1.20 from such an announcement.

Expected Dividend Increase #2: Home Depot (HD)

The next dividend boost that I am predicting for next month will come from Home Depot. I believe that HD will declare a 5.3% increase in its quarterly dividend per share to $2.00.

My net annual forward dividends would be lifted $1.20 higher across my three shares of HD if this declaration plays out as expected.

Expected Dividend Increase #3: Albemarle (ALB)

The third dividend bump that I'm anticipating in February will be from Albemarle. My projection is that ALB will announce a 2.5% increase in its quarterly dividend per share to $0.405.

Across my six shares of ALB, my net annual forward dividends would edge $0.24 higher from such an announcement.

Expected Dividend Increase #4: Prudential Financial (PRU)

The next dividend increase that I am expecting for next month will come from Prudential Financial. My best guess is that PRU will declare a 4.2% raise in its quarterly dividend per share to $1.25.

My net annual forward dividends would surge $2.00 higher across my 10 shares of PRU if this declaration goes as anticipated.

Expected Dividend Increase #5: L3Harris Technologies (LHX)

The fifth dividend raise that I'm projecting in February will be from L3Harris Technologies. I believe that LHX will announce a 7.1% increase in its quarterly dividend per share to $1.20.

Across my four shares of LHX, my net annual forward dividends would rise by $1.28 from such an announcement.

Expected Dividend Increase #6: Cisco Systems (CSCO)

The next dividend bump that I am forecasting for next month will come from Cisco Systems. My projection is that CSCO will declare a 2.6% increase in its quarterly dividend per share to $0.39.

My net annual forward dividends would grow by $0.88 across my 22 shares of CSCO if this declaration plays out as expected.

Expected Dividend Increase #7: T. Rowe Price Group (TROW)

The seventh dividend raise that I'm anticipating in February will be from T. Rowe Price Group. My best guess is that TROW will announce a 2.5% bump in its quarterly dividend per share to $1.23.

Across my six shares of TROW, my net annual forward dividends would increase by $0.72 from such an announcement.

Expected Dividend Increase #8: Allstate (ALL)

The next dividend increase that I am predicting for next month will come from Allstate. I believe that ALL will declare a 3.5% raise in its quarterly dividend per share to $0.88.

My net annual forward dividends would edge $0.60 higher across my five shares of ALL if this declaration comes to fruition.

Expected Dividend Increase #9: 3M (MMM)

The ninth dividend bump that I'm projecting in February will be from 3M. My estimate is that MMM will announce a 0.7% increase in its quarterly dividend per share to $1.50.

Across my six shares of MMM, my net annual forward dividends would rise by $0.24 from such an announcement.

Expected Dividend Increase #10: Medical Properties Trust (MPW)

The next dividend increase that I am expecting for next month will come from Medical Properties Trust. My best guess is that MPW will declare a 3.4% dividend increase in its quarterly dividend per share to $0.30.

My net annual forward dividends would surge $2.56 higher across my 64 shares of MPW if this declaration occurs.

Expected Dividend Increase #11: Coca-Cola (KO)

The eleventh dividend hike that I'm forecasting in February will be from Coca-Cola. I believe that KO will announce a 4.5% increase in its quarterly dividend per share to $0.46.

Across my 10 shares of KO, my net annual forward dividends would rise by $0.80 from such an announcement.

Expected Dividend Increase #12: PepsiCo (PEP)

The next dividend increase that I am expecting for next month will come from PepsiCo. My estimate is that PEP will declare a 7.8% hike in its quarterly dividend per share to $1.24.

My net annual forward dividends would surge $1.44 higher across my four shares of PEP if this declaration manifests itself.

Expected Dividend Increase #13: Digital Realty Trust (DLR)

The thirteenth dividend raise that I'm predicting in February will be from Digital Realty Trust. My best guess is that DLR will announce a 4.9% increase in its quarterly dividend per share to $1.28.

Across my six shares of DLR, my net annual forward dividends would move $1.44 higher from such an announcement.

Expected Dividend Increase #14: NextEra Energy (NEE)

The next dividend increase that I am projecting for next month will come from NextEra Energy. I believe that NEE will declare an 8.2% hike in its quarterly dividend per share to $0.46.

My net annual forward dividends would rise by $1.26 across my nine shares of NEE if this declaration materializes.

Already Announced Dividend Increase: Shell (SHEL)

Shell announced a 15% hike in its quarterly dividend per share to $0.575. Across my nine shares of SHEL, my net annual forward dividends were boosted by $2.70 by this dividend announcement.

Concluding Thoughts:

The dozen dividend increases that I received during the month of January 2023 caused my net annual forward dividends to soar higher by $28.35. Putting this into perspective, that would be the equivalent of investing $810.00 in fresh capital at a weighted-average dividend yield of 3.5%. As the months and years unfold, my portfolio is carrying more and more of the load on my journey toward financial independence.

And if the fourteen raises that I expect for February turn out to be correct, my net annual forward dividends would soar $18.56 higher (including the raise from SHEL before this blog post was wrote). This would require a $530.29 investment at a 3.5% dividend yield to replicate.

Discussion:

How was your January 2023 for dividend hikes?

Are you expecting any first-time payout boosts as I am with NEE?

As always, thanks for your readership. You're welcome to leave comments below!

Tuesday, January 31, 2023

December 2022 Dividend Income

As I'm writing this blog post, it's hard to believe that the end of the first month of 2023 is already almost upon us. After weeks of warmer than average weather, it is certainly feeling like January again here in Central Wisconsin: The low temperature for today (Friday, January 27, 2023) will be a frigid 8 degrees Fahrenheit.

Earlier this month, I alluded to my net dividend income for December 2022. But let's use this blog post as an opportunity to dig deeper into the figure.







During the month of December 2022, I received $423.00 in net dividends. Compared to the $343.64 in net dividends that I collected in September 2022, this is a 23.1% quarterly growth rate.

Put up against the $353.38 in net dividends that I received in December 2021, my net dividend income surged 19.7% higher over the year-ago period.

Breaking my net dividends down by account, I collected $253.60 in net dividends from 44 stocks in my Robinhood account. My net dividends received from the Capital Income Builder (CAIBX) mutual fund within my retirement portfolio was $153.67 (after including the $10 annual fee charged during the month). I collected $15.25 in net dividends from six stocks in my Webull account. Finally, I received $0.48 in net dividends from 22 stocks within my M1 Finance portfolio.

The $79.36 increase in my net dividends collected from September 2022 to December 2022 was the result of the following activity in my investing accounts:

My net dividends received from Broadcom (AVGO) were $1.50 higher within my Robinhood and Webull portfolios. This was due to the 12.2% hike to the quarterly dividend per share last month.

I collected an extra $0.38 in net dividends from Crown Castle International (CCI) in my Robinhood account, which was the result of a 6.5% boost to the quarterly dividend per share in October.

My net dividends received from Lockheed Martin (LMT) were $0.80 more within my Robinhood and Webull portfolios. This was due to the 7.1% increase in the quarterly dividend per share back in September.

I collected an additional $0.45 in net dividends from Simon Property Group (SPG) in my Robinhood account, which was thanks to the 2.9% lift in the quarterly dividend per share last November.

My net dividends received from Main Street Capital (MAIN) were $0.12 higher within my Robinhood portfolio. This was due to the 2.3% increase in the monthly dividend per share announced in November.

I collected an extra $0.42 in net dividends from McDonald's (MCD) in my Robinhood account, which was the result of the 10.1% raise in the quarterly dividend per share last October.

My net dividends received from Realty Income (O) were an extra $1.00 within my Robinhood portfolio. This was due to my purchase of four more shares in November and the 0.2% dividend increase last month.

I collected an additional $4.40 in net dividends from Coca-Cola (KO) in my Robinhood account, which was because the timing of the dividend payment.

My net dividends received from KeyCorp (KEY) were $0.39 higher within my Robinhood portfolio. That was due to the 5.1% raise in the quarterly dividend per share in November.

I collected an extra $2.56 in net dividends from STAG Industrial (STAG) in my Robinhood account, which was the result of my purchase of 21 shares in October.

My net dividends received from Exxon Mobil (XOM) within my Robinhood and M1 Finance portfolios were $0.34 greater. This was due to the 3.4% raise in the quarterly dividend per share declared in October.

I collected an additional $0.55 in net dividends from American Electric Power (AEP) in my Robinhood account, which was the result of the 6.4% raise announced last October.

My net dividends received from Microsoft (MSFT) were $0.18 higher within my Robinhood portfolio. This was due to the 9.7% dividend hike announced in September.

I collected an extra $0.37 in net dividends from Visa (V) in my Robinhood and Webull accounts, which was the result of the 20% boost to the quarterly dividend per share declared last October.

My net dividends received from Pinnacle West Capital (PNW) within my Robinhood portfolio were $0.11 more. This was due to the 1.8% dividend increase announced in October.

I collected an additional $77.73 in net dividends from my CAIBX mutual fund in my retirement account during the month, which due to a higher share count and the special dividend payment.

My net dividends received from PepsiCo (PEP) were $4.62 less within my Robinhood and M1 Finance portfolios. This was the result of the timing of the dividend payment.

I also collected $7.32 less in net dividends from Digital Realty Trust (DLR) in my Robinhood account, which was due to the dividend payment's timing.

Concluding Thoughts:

As I continue to deploy between $3,000 and $3,500 in capital each month and I receive more dividend hikes from my holdings, my portfolio should really pick up steam in 2023 and beyond. In fact, I anticipate that March 2023 will probably be my final end-of-quarter month with net dividend income under $400.

Discussion:

How was your dividend income last month?

Did you receive any first-time dividends in December 2022?

Thanks for reading and please feel free to comment below!

Tuesday, January 24, 2023

February 2023 Dividend Stock Watch List

As I'm writing this blog post, it is January 19th. The temperature here in Central Wisconsin is a balmy 30 degrees Fahrenheit, which is above-average for this time of the year!

With that aside, the end of January will be here before we know it. That's why I will be sharing three dividend stocks that are on my watch list for next month.


Image Source: Pexels

Dividend Stock #1: Digital Realty Trust (DLR)

The first dividend stock that I am watching for next month is Digital Realty Trust (DLR). For readers interested in my investment thesis, I would refer them to my Motley Fool article from earlier this month.

The gist of it is that DLR is a leader in the growing data center industry. On top of that, the stock's 4.6% dividend yield is well-covered and much higher than the S&P 500 index's 1.7% yield. And at a price-to-FFO-per-share ratio of 15.6, the stock is a good value at the current $105 share price (as of January 19, 2023).

Dividend Stock #2: Fastenal (FAST)

The next dividend stock on my watch list in February is Fastenal (FAST). FAST's 12.9% hike in its quarterly dividend per share yesterday to $0.35 grabbed my attention.

Analysts believe that the construction equipment distributor will generate high-single-digit annual earnings growth over the medium term. Paired with the stock's 3% dividend yield, this is a nice mix of starting income and growth potential. That's especially the case given that FAST's dividend payout ratio will still be manageable in the low-70% range for 2023.

At a current year P/E ratio of 24.1, FAST isn't the cheapest stock out there. But since the stock just became a Dividend Aristocrat, it is arguably worthy of the premium valuation that it garners at the current $47 share price (as of January 19, 2023).

Dividend Stock #3: WEC Energy Group (WEC)

The third dividend stock that I am paying attention to for next month is WEC Energy Group (WEC). Even though my previous Motley Fool article on the stock (and Main Street Capital and Energy Transfer) was last June, the investment thesis remains intact.

Nearly 5 million customers throughout the Midwest depend on WEC for electricity and natural gas services. As the company updates and expands its infrastructure, analysts expect 6.4% annual earnings growth over the next five years. Coupled with a 3.4% dividend yield, WEC could offer strong total returns. And the stock is trading at a reasonable forward P/E ratio of 19.9 at the current $92 share price (as of January 19, 2023).

Concluding Thoughts:

It's hard to believe that the first month of 2023 will soon be over. I will likely have deployed between $3,000 to $3,500 in capital in January. And I believe that I'll be able to maintain that pace of capital deployment in February as well.

Discussion:

Are any of DLR, FAST, or WEC on your radar for next month?

If not, what stocks are on your watch list for February 2023?

Thanks for your readership. I welcome your comments below!

Tuesday, January 17, 2023

December 2022 Dividend Stock Purchases

As I'm writing this blog post on January 13, 2023, the year of 2022 is nearly two weeks behind us at this point.

Thus, I will be going over my dividend (and non-dividend) stock purchases for the final month of last year. Last month was my slowest for capital deployment in all of 2022 as I closed out the year by building my emergency fund up to just beyond six months of living expenses. Without further ado, let's dig into the few purchases that I made in December 2022.


I started off the month by adding yet another share to my position in Amazon (AMZN) at a cost of $94.80. As I alluded to in a previous post a while back, AMZN is the leader in e-commerce and cloud computing. And while the stock doesn't pay a dividend right now, it almost certainly will in the next six or seven years.

On that same note, I increased my position in Alphabet (GOOGL) by a share for the price of $100.18. GOOGL is the dominant digital advertising company in the world. And like AMZN, I suspect that it will likely begin paying a dividend by the end of this decade.

My first dividend stock purchase for the month was when I opened a starter position of three shares in Tractor Supply (TSCO) at an average cost per share of $210.95. For readers interested in the rationale on why I made this stock purchase and the two that will follow, my December 2022 dividend stock watch list post can provide more details. This transaction added $11.04 to my net annual forward dividend income, which equates to a 1.74% net dividend yield.

The next dividend stock purchase that I completed in December was one share of Union Pacific (UNP) at a price of $205.71. This buy boosted my net annual forward dividends by $5.20, which is equivalent to a 2.53% dividend yield.

The third and final dividend stock purchase that I executed last month was one share of FedEx (FDX) at a cost of $167.43. This transaction increased my net annual forward dividends by $4.60, which works out to a 2.75% net dividend yield.

Concluding Thoughts:

I deployed $1,200.68 in capital during December 2022. These purchases lifted my net annual forward dividends higher by $20.84, which is a 1.74% weighted average net dividend yield.

Along with the $18.794 increase to my net annual forward dividends from dividend increases last month, this pushed my net annual forward dividends up to just below $3,355 heading into January 2023.

Discussion:

How was capital deployment in December 2022 for you?

Did you open any new positions like I did with TSCO?

I appreciate your readership and look forward to your comments below!