Tuesday, June 30, 2020

Expected Dividend Increases for July 2020

As I'm writing this post, June is a day away from ending, which means the year will soon be half over. The speed with which time is passing never ceases to amaze me!

And for the sake of this post, I'll be recapping key dividend announcements during the month of June and looking ahead to the sole dividend increase that I'm expecting during July.

Actual June Dividend Announcements

Dividend Increase #1: Realty Income (O)

As I expected in my previous post in this series, Realty Income (O) came through once again when it announced a 0.2% increase in its monthly dividend, boosting its dividend from $0.2330/share to $0.2335 share.

In a difficult operating environment such as the one we currently find ourselves in, it's reassuring to know that I own plenty of high-quality dividend paying stocks, such as O.

Across the 7 shares of O that I own, my annual forward dividend income was boosted by $0.042 as a result of O's dividend announcement.

Dividend Increase #2: W.P. Carey (WPC)

Just as O came through with a dividend increase as I expected, W.P. Carey (WPC) announced a 0.2% increase in its quarterly dividend, upping its dividend from $1.040/share to $1.042/share.

Across the 5 shares of WPC in my portfolio, my annual forward dividend income increased by $0.040 as a result of WPC's dividend announcement.

Dividend Increase #3: UnitedHealth Group (UNH)

As a result of not owning UnitedHealth Group (UNH) when it announced its dividend increase last June, I forgot to include my expectation for UNH's dividend increase in the previous post of the series.

Boy, was that quite the omission on my part, as UNH announced a 15.7% increase in its quarterly dividend, taking it from $1.08/share to $1.25/share.

UNH once again delivered a strong dividend increase, which is always appreciated, especially in this environment!

Across my single share of UNH, my annual forward dividend income was boosted by $0.68.

Dividend Cut: Simon Property Group (SPG)

Simon Property Group (SPG) announced a while back that it would be announcing its dividend later than usual toward the end of this month.

It was just today that SPG announced a 38.1% cut to its quarterly dividend, decreasing it from $2.10/share to $1.30/share.

While it is disappointing to see SPG announce a dividend cut considering it is one of my 10 largest positions in terms of dividend income, I don't blame SPG for temporarily cutting its dividend just to err on the side of caution. I fully expect that within the next year, SPG's dividend will be restored to its previous level.

Across my 6 shares of SPG, my annual forward dividend income decreased by $19.20.

Expected Dividend Announcements for July

Dividend Increase: JM Smucker (SJM)

Given the uncertain operating environment, I am expecting JM Smucker (SJM) to announce a smaller dividend increase than usual, which I believe will be a 2.3% increase in its quarterly dividend, from $0.88/share to $0.90/share.

If this occurs, my annual forward dividend income would be boosted by $0.16 across my 2 shares of SJM.

Concluding Thoughts:

Even though my dividend income stemming from dividend announcements declined by $18.438 during the month of June and my dividend income has now fallen by roughly 6% after the SPG cut and previous cuts/SKT's dividend suspension, I am confident that 2021 will usher in a return to growth and dividends will then quickly be restored to previous levels.


Did your portfolio experience any dividend cuts during June?

Are you expecting any dividend cuts down the road?

As always, thanks for reading and I welcome your comments in the comment section below.

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