Tuesday, March 5, 2019

Expected Dividend Increases for March 2019

The Milwaukee Bucks are still in 1st place in the Eastern Conference and the month of February is now behind us, although it doesn't seem as thought the snow is done hitting Central Wisconsin. With that said, it's time to examine the dividend increases from February and look ahead to the dividend increases predicted for the month of March.



February Dividend Increases:

Increase #1: Genuine Parts Company (GPC)

Genuine Parts Company announced a 5.9% increase in its dividend, hiking the quarterly dividend from $0.72/share to $0.7625/share. GPC increased its dividend a bit more than the $0.76 that I was projecting, so I'm quite pleased with this raise. Overall, it increased my annual forward dividends by $0.51 across my 3 shares.

Increase #2: The Home Depot (HD)

The Home Depot announced a 32% increase in its dividend, skyrocketing the quarterly dividend from $1.03/share to $1.36/share! This raise was considerably higher than I think anyone in the community expected. This massive raise from HD increased my annual forward dividends by $1.32 across my single share.

Increase #3: PPL Corp (PPL)

PPL Corp announced a 0.6% increase in its dividend, raising it from $0.41/share to $0.4125/share. This dividend increase was quite anemic and well below the increase that I was expecting. Overall, it did manage to increase my annual forward dividends by $0.08 across my 8 shares.


Expected Dividend Increase #1: Williams Sonoma (WSM)

I'm expecting a 9.3% dividend increase from WSM, raising the quarterly dividend from $0.43 to $0.47. This would increase annual forward dividends by $0.96 across my 6 shares.


Expected Dividend Increase #2: Realty Income (O)

I'm expecting a 0.2% dividend increase from O, raising the monthly dividend from $0.2255 to $0.2260. This would equate to an increase in my annual forward dividends of ~$0.024 across my 4 shares.

Expected Dividend Increase #3: WP Carey (WPC)

I'm expecting a routine 0.5% dividend increase from WPC, raising the quarterly dividend from $1.03 to $1.035. This would result in an increase to annual forward dividends of $0.06 across my 3 shares.

Summary: 

February was a month with a little bit of everything. There was the GPC raise that was as expected, the HD raise that exceeded expectations tremendously, and the PPL raise that was rather disappointing. The point is that despite all that news, my dividend income continues to increase without much input from me. These great businesses continue to churn out profits to support their dividend increases while I let them do their thing. I received $1.91 in dividend increases in February. Assuming a 4% dividend yield, this would require an investment of $47.75 to duplicate! Furthermore, $1.044 of increases are expected in March for my annual forward dividends. This would require an investment of $26.10 in fresh capital, assuming a 4% dividend yield.


Discussion:

How many dividend increases are you expecting in March? Are you expecting dividend increases from any names not mentioned in this post?

2 comments:

  1. I didn't know you were an NBA fan, Kody! The Bucks are looking great this year. I'm a fan of Giannis for sure. I'm not holding any of the names in this post yet but I'd be open to looking into all of them. I'd like to be holding Home Depot after that raise. It also would add good diversification to my portfolio. Thanks for putting this together!

    ReplyDelete
  2. The Bucks certainly are looking great and like a potential contender to the Golden State Warriors this year, and that's mostly because of the Greek Freak. This month brought a little bit of everything in terms of dividend raises. Glad you enjoyed reading and thanks for the comment!

    ReplyDelete