Tuesday, June 28, 2022
Tuesday, June 21, 2022
Dividend Increase #1: Realty Income (O)
Dividend Increase #2: W.P. Carey (WPC)
Dividend Increase #3: UnitedHealth Group (UNH)
Dividend Increase #4: FedEx (FDX)
Dividend Increase #5: General Mills (GIS)
Pending Dividend Increase: Clorox (CLX)
Expected Dividend Increases for July 2022
Expected Dividend Increase #1: Wells Fargo (WFC)
Expected Dividend Increase #2: J.M. Smucker (SJM)
Expected Dividend Increase #3: National Retail Properties (NNN)
Expected Dividend Increase #4: Essential Utilities (WTRG)
Expected Dividend Increase #5: Cummins (CMI)
Expected Dividend Increase #6: Hershey (HSY)
Expected Dividend Increase #7: Duke Energy (DUK)
Tuesday, June 14, 2022
As I'm writing this blog post, it's raining here in Central Wisconsin. The good news is that this will help keep the fire danger low for the foreseeable future as we head into summer. But the bad news is that it will be more difficult to enjoy the outdoors.
With that aside, it's already mid-June. That makes now a good time to look a few weeks ahead at three stocks that I will buy next month, barring massive surges in their share prices. Let's dig in.
Image Source: Pexels
Dividend Stock #1: VICI Properties (VICI)
As I explained in a Motley Fool article published last month, VICI Properties is the largest gaming real estate investment trust (REIT) in the world. The company owns many of the most iconic gaming properties in the world.
Ownership of these reputable properties has literally paid dividends to VICI's shareholders. This has allowed the stock to average high-single-digit annual dividend increases over the past several years. With a dividend payout ratio just above 70% in 2021, dividend growth should remain strong going forward.
Buying VICI in July is an opportunity to purchase shares ahead of the stock's anticipated payout hike in September. In the meantime, the starting yield on a lot of shares at the current $30 share price is 4.8% (as of June 11, 2022). And at a 2022 price-to-AFFO-per share ratio of 16.5, VICI's shares look sensibly valued at this time as well.
Dividend Stock #2: Merck (MRK)
The next stock that's on my watch list for July is the pharma powerhouse Merck. Interested readers can get my most recent thoughts on the stock in more detail in this Motley Fool article that was published last month.
But the gist of it is these three points:
1) The stock's impressive drug pipeline should lead to above-average growth in the years ahead.
2) The market-beating payout should continue to increase at a healthy rate.
3) The stock is trading at a bargain valuation for its quality.
Dividend Stock #3: Magellan Midstream Partners (MMP)
Astute readers will point out that technically Magellan Midstream Partners is a distribution stock and not a dividend stock. This is due to the fact that MMP is a master limited partnership and not a C-corp, so it pays distributions rather than dividends.
It has been a while since I have looked at MMP, but the fundamentals look intact from what I can tell. This is why I still like the stock from when I last covered it at Motley Fool last December.
The basic reasons why I'm confident that the stock will make its unitholders rich in the years ahead are as follows:
1) MMP's 12,000 miles of refined products and crude oil pipelines would be almost impossible for any competition to replicate.
2) Global economic growth will require more refined products and crude oil over the next couple of decades, which should lead to slow and steady growth for MMP.
3) MMP pays a market-crushing 7.9% distribution yield, which is well-covered by distributable cash flow.
I'm very blessed to have the opportunity each month to add to my positions in the best companies in the world. And July should be another month with capital deployment in the $2,500 to $3,000 range. This should go a long way in my goal of building meaningful passive income in the years ahead to achieve financial independence.
Are any of VICI, MRK, or MMP on your watch list for July 2022?
If not, what stocks are you considering purchasing next month?
I appreciate your readership and welcome your comments below!