As I'm writing this blog post, the temperature is going to soar from a high of 41 degrees Fahrenheit today to 55 degrees Fahrenheit by Friday. One month after the calendar officially turned to spring, it appears that the weather is finally reflecting the change of seasons here in Central Wisconsin.
With that aside, I'll be turning my attention to the dividend increases that I have received in April and looking ahead to the payout raises that I am expecting in May.
Actual Dividend Increases for April 2022
Dividend Increase #1: Johnson & Johnson (JNJ)
Johnson & Johnson declared a 6.6% increase in its quarterly dividend per share from $1.06 to $1.13. This came in just below my expectation of a 7.5% hike in the quarterly dividend. But it marked the 60th straight year that the stock raised its dividend. JNJ is undoubtedly one of the best businesses in the world and I'm thrilled to be a shareholder.
Across my five shares of JNJ, my net annual forward dividends surged $1.40 higher due to the stock's dividend boost.
Dividend Increase #2: Southern Company (SO)
Southern Company announced a 3% raise in its quarterly dividend per share from $0.66 to $0.68. True to form as a consistent utility, this was in line with my prediction. SO is a quality utility with 21 consecutive years of payout increases under its belt. That's why I'm glad to hold the stock in my portfolio.
My net annual forward dividends edged $0.40 higher across my five shares of SO as a result of the dividend increase.
Dividend Increase #3: Tanger Factory Outlet Centers (SKT)
Tanger Factory Outlet Centers declared a 9.6% increase in its quarterly dividend per share from $0.1825 to $0.20. This is still well below the $0.3575 peak in the early days of the COVID-19 pandemic. But it's nice to see that SKT is working toward restoring its dividend. And its fundamentals have improved to the point where I believe the dividend will be fully restored by the end of 2023. SKT will then emerge a much stronger company with loads of liquidity and a low payout ratio.
Across my 11 shares of SKT, my net annual forward dividends increased by $0.77 due to the payout raise.
Dividend Increase #4: Raytheon Technologies (RTX)
Raytheon Technologies announced a 7.8% raise in its quarterly dividend per share from $0.51 to $0.55. This came in a bit below my prediction of a 9.8% raise in the quarterly dividend per share to $0.56. But a high-single-digit dividend raise is still pretty decent.
My net annual forward dividends advanced higher by $1.12 across my seven shares of RTX as a result of the dividend increase.
Dividend Increase #5: International Business Machines (IBM)
Just as expected, International Business Machines announced a token 0.6% bump in the quarterly dividend per share from $1.64 to $1.65. It looks like Big Blue is starting to turn its business around and I wouldn't be surprised to see a resumption of larger dividend increases in a couple of years.
Across my four shares of IBM, my net annual forward dividends edged $0.16 higher due to the payout increase.
Dividend Increase #6: American Water Works (AWK)
American Water Works declared an 8.7% increase in its quarterly dividend per share from $0.6025 to $0.655. This came in a bit below my expectation of a 10% raise to $0.6625. But I'll gladly take that inflation-beating raise from AWK.
My net annual forward dividends were boosted by $0.84 across my four shares of AWK as a result of the dividend hike.
Dividend Increase #7: Energy Transfer (ET)
Energy Transfer announced a massive 14.3% hike in its quarterly distribution per unit from $0.175 to $0.20. ET has recently hinted at its ambition to restore its quarterly distribution to the previous $0.305 amount in the quarters ahead. And since ET has significantly reduced its leverage and has a very high distribution coverage ratio, the company can certainly afford to make good on this promise.
Across my 58 units of ET, my net annual forward distributions soared $5.80 higher due to the distribution raise.
Dividend Freeze: Exxon Mobil (XOM)
Exxon Mobil declared a quarterly dividend per share of $0.88, which was in line with its previous dividend. With WTI crude so high and XOM pumping out huge profits, I was surprised that they didn't increase the dividend in April. That's because they had consistently done so until the COVID-19 pandemic had them announce a dividend increase last October to keep their Dividend Aristocrat status alive.
Perhaps October will be the new April for dividend increases for XOM.
Expected Dividend Increases for May 2022
Expected Dividend Increase #1: American Tower (AMT)
The first dividend increase that I'm anticipating in May will come from American Tower. My prediction is that AMT will announce a 2.9% increase in its quarterly dividend per share from $1.40 to $1.44. What makes AMT an especially great REIT is that it raises its dividend four times a year. Low-to-mid single-digit dividend increases every quarter really add up.
Across my three shares of AMT, my net annual forward dividends would inch $0.48 higher, if my estimate is proven correct.
Expected Dividend Increase #2: Lowe's (LOW)
The next dividend increase that I expect next month is from Lowe's. LOW boasts a low (pun intended) dividend payout ratio and analysts are expecting adjusted diluted EPS to rise 11.6% to $13.44 in 2022. This is why I believe LOW will declare a 13.8% increase in its quarterly dividend per share from $0.80 to $0.91.
If my forecast is correct, my net annual forward dividends would soar $2.20 higher across my five shares of LOW.
Expected Dividend Increase #3: Leggett & Platt (LEG)
The third dividend increase that I foresee for May will come from Leggett & Platt. With 50 straight years of dividend increases under its belt, LEG is an unofficial Dividend King. And I believe the stock will extend its dividend growth streak with a 4.8% raise in the quarterly dividend per share from $0.42 to $0.44.
Across my 12 shares of LEG, my net annual forward dividends would increase by $0.96, if my prediction pans out.
Expected Dividend Increase #4: Clorox (CLX)
The next dividend increase that I'm expecting for next month is from Clorox. Since the business is currently experiencing some challenges, I'm expecting a token dividend increase to keep its decades-long dividend growth streak alive. This is why I believe CLX will announce a 0.9% increase in its quarterly dividend per share from $1.16 to $1.17.
My net annual forward dividends would edge $0.08 higher across my two shares of CLX, if my estimate is right.
Expected Dividend Increase #5: Medtronic (MDT)
The fifth payout raise that I'm anticipating in May will come from Medtronic. I believe that MDT will declare a 7.9% increase in its quarterly dividend per share from $0.63 to $0.68.
Across my five shares of MDT, my net annual forward dividends would increase by $1.00, if my forecast is proven correct.
Expected Wild Card Dividend Increase: Omnicom (OMC)
The final dividend increase that I'm expecting next month is from Omnicom. Since OMC kept its dividend the same in February, I believe the stock will have a 7.1% raise in store for shareholders in May. This would bring the quarterly dividend per share up to $0.75 from the current amount of $0.70.
My net annual forward dividends would surge $1.40 higher across my seven shares of OMC, if my prediction pans out.
The seven raises that I received in April led my net annual forward dividends higher by $10.49. This is equivalent to investing $299.71 in capital at a 3.5% weighted average dividend yield.
Looking ahead to next month, my net annual forward dividends would increase by $6.12 if all of my estimates come to fruition. This would have the same effect as investing $174.86 at a weighted average yield of 3.5%.
How was your April 2022 in terms of payout increases?
Are you expecting any first-time dividend increases in May 2022 like I am with CLX and MDT?
Thanks for your readership. Feel free to leave a comment below!
April was a solid month for us. Loved that JNJ and RTX raise and PG and PAYX as well. I'll be watching LEG to see what they end up doing. I had a position in LEG but sold out for the tax loss but I can buy back in now and a solid dividend increase sure would help to convince me to do so. Looking forward to see what LOW, MDT and AQN do for their raises.ReplyDelete
Thanks for the comment. The JNJ and RTX raises were solid. PAYX blew it out of the water with its raise. It's too bad the stock still looks moderately overpriced in my opinion.ReplyDelete