Tuesday, September 27, 2022

Expected Dividend Increases for October 2022

As I'm writing this blog post, the first day of fall is behind us here in Central Wisconsin. And with the temperature currently at 57 degrees Fahrenheit, there's no denying that fall is in the air.

With that aside, I'll turn my attention to the dividend increases that I have received thus far in September. I will also look ahead to the dividend increases that I'm anticipating for next month. For the sake of conciseness (there were quite a few dividend increases in September), I won't discuss the reasoning behind my dividend increase expectations for October.

Actual Dividend Increases for September 2022

Dividend Increase #1: Realty Income (O)

Realty Income declared a 0.2% increase in its monthly dividend per share to $0.2480, which was precisely what I predicted in the previous blog post of this series.

This announcement led my net annual forward dividends to edge $0.078 higher across my 13 shares of O.

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

Similar to O, W.P. Carey announced a 0.2% increase in its quarterly dividend per share to $1.061. This was also in line with what I outlined as my expectation.

Across my seven shares of WPC, my net annual forward dividends inched upward by $0.056 due to the dividend declaration.

Dividend Increase #3: STORE Capital

STORE Capital delivered a 6.5% increase in its quarterly dividend per share to $0.41. This was what I was anticipating. But the bitter sweet news is that it will be the company's last dividend before being bought out by GIC and Oak Street, assuming the deal is approved by shareholders.

My net annual forward dividends would be $3.30 higher as a result of this latest dividend hike across my 33 shares, but for the fact that the deal will almost certainly be closed in just a few months.

Dividend Increase #4: Innovative Industrial Properties (IIPR)

Innovative Industrial Properties declared a 2.9% increase in its quarterly dividend per share to $1.80. This was below my expectation of a raise to $1.90. But given the recent issues with one of its largest tenants called Kings Garden, it makes sense for the company to err on the side of caution until that can be resolved.

Across my six shares of IIPR, my net annual forward dividends were boosted by $1.20 due to the payout increase.

Dividend Increase #5: American Tower (AMT)

American Tower announced a 2.8% bump in its quarterly dividend per share to $1.47, which was precisely what I predicted.

My net annual forward dividends increased by $0.72 across my three shares of AMT as a result of the dividend increase.

Dividend Increase #6: VICI Properties (VICI)

VICI Properties declared an 8.3% hike in its quarterly dividend per share to $0.39. This came in better than the $0.38 quarterly dividend per share that I was anticipating.

Across my 33 shares of VICI, my net annual forward dividends were boosted by $3.96 due to the dividend boost.

Dividend Increase #7: Verizon Communications (VZ)

Verizon Communications announced a 2% increase in the quarterly dividend per share to $0.6525. Again, this was what I was expecting.

My net annual forward dividends were lifted $1.00 higher across my 20 shares of VZ as a result of the payout bump.

Dividend Increase #8: Philip Morris International (PM)

Philip Morris International declared a 1.6% increase in the quarterly dividend per share to $1.27. This came in a bit higher than the $1.26 quarterly dividend per share that I was forecasting.

Across my 13 shares (at the time of the announcement), my net annual forward dividends surged upward by $1.08 due to the dividend bump.

Dividend Increase #9: Microsoft (MSFT)

Microsoft announced a 9.7% hike in its quarterly dividend per share to $0.68, which was spot on with my projection.

My net annual forward dividends were lifted $0.72 higher across my three shares of MSFT as a result of the payout boost.

Dividend Increase #10: U.S. Bancorp (USB)

U.S. Bancorp declared a 4.3% increase in its quarterly dividend per share to $0.48. This was just below my estimate of $0.48.

Across my 13 shares of USB, my net annual forward dividends were boosted by $1.04 due to the dividend hike.

Dividend Increase #11: Texas Instruments (TXN)

Texas Instruments announced a 7.8% bump in its quarterly dividend per share to $1.24. This came as a surprise to me since TXN's dividend increases in past years have typically been in October.

My net annual forward dividends were lifted by $2.16 across my six shares of TXN as a result of the new dividend declaration.

Pending Dividend Increase #1: McDonald's (MCD)

As of September 23, McDonald's has yet to announce a dividend increase. But I am reiterating my expectation of a 7.2% increase in the quarterly dividend per share to $1.48.

Across my three shares of MCD, my net annual forward dividends would increase by $1.20, if the company meets my forecast.

Pending Dividend Increase #2: Starbucks (SBUX)

Starbucks also hasn't declared a dividend hike yet. I'm also maintaining my projection for an 8.3% raise in the quarterly dividend per share to $0.53.

If correct, my net annual forward dividends would be lifted by $1.60 across my 10 shares of SBUX.

Pending Dividend Increase #3: Lockheed Martin (LMT)

Lockheed Martin is the third company that hasn't upped its payout just yet. But that should be changing any day now. And I suspect that my initial estimate of a 7.1% increase in the quarterly dividend per share to $3.00 will prove correct.

Across my four shares of LMT, my net annual forward dividends would soar $3.20 higher from such a dividend increase.

Expected Dividend Increases for October 2022

Expected Dividend Increase #1: American Electric Power (AEP)

The first dividend increase that I'm expecting in October is from American Electric Power. I believe that AEP will declare a 5.1% increase in its quarterly dividend per share to $0.82.

If this increase plays out, my net annual forward dividends would surge $1.76 higher across my 11 shares of AEP.

Expected Dividend Increase #2: Visa (V)

The next payout boost that I am anticipating next month will be from Visa. I wouldn't be surprised if V announced a 14.7% hike in its quarterly dividend per share to $0.43.

Across my five shares of V, this would work out to an extra $1.10 in net annual forward dividends, if my projection is correct.

Expected Dividend Increase #3: Exxon Mobil (XOM)

The third dividend increase that I'm expecting in October is from Exxon Mobil. My forecast is for a 4.5% bump in the quarterly dividend per share to $0.92.

If this dividend hike occurs, my net annual forward dividends would be lifted $1.76 higher across my 11 shares of XOM.

Expected Dividend Increase #4: Magellan Midstream Partners (MMP)

The next distribution bump that I'm projecting next month will be from Magellan Midstream Partners. I believe MMP will increase its quarterly distribution per unit by 1% to $1.0475.

Across my 16 units of MMP, my net annual forward distributions would edge $0.64 higher, if my forecast is right.

Expected Dividend Increase #5: AbbVie (ABBV)

The fifth dividend increase that I believe will be announced in October is from AbbVie. My projection is for a 6.4% hike in the quarterly dividend per share to $1.50.

My net annual forward dividends would surge $2.52 higher across my seven shares of ABBV, if the company meets my expectations.

Expected Dividend Increase #6: Pinnacle West Capital (PNW)

The next dividend bump that I'm expecting next month will be from Pinnacle West Capital. I believe that PNW will declare a 2.4% increase in the quarterly dividend per share to $0.87.

Across my seven shares of PNW, my net annual forward dividends would edge higher by $0.56, if my prediction pans out.

Expected Dividend Increase #7: Crown Castle International (CCI)

The final dividend increase that I'm projecting for October is from Crown Castle International. My forecast is that CCI will deliver an 8.2% increase in its quarterly dividend per share to $1.59.

My net annual forward dividends would be boosted by $1.92 across my four shares of CCI if my estimate is right.

Concluding Thoughts:

Not counting the looming payout hikes from MCD, SBUX, and LMT, my net annual forward dividends were lifted by $15.314 with my 11 dividend increases. This would be equivalent to investing $437.54 at a 3.5% weighted average dividend yield.

The number of dividend hikes will slow down in October. But if my predictions are proven correct, my net annual forward dividends would be boosted by $10.26 from payout raises.

Discussion:

How has your September been for dividend hikes?

Did you receive any first-time payout increases during the month as I did with IIPR, TXN, USB, VICI, (and likely MCD and SBUX at the end of this month)?

Thank you for your readership. Please feel free to comment below!

Tuesday, September 20, 2022

October 2022 Dividend Stock Watch List

As I'm writing this blog post, today, September 16th, is the day before a somber occasion. Those who know me personally may be aware that my paternal grandfather passed away long before I was born and my maternal grandfather passed away when I was four years old.

My paternal grandmother eventually met a partner who would fill the role as my grandfather from the moment I was born until just recently. Unfortunately, he passed away suddenly on September 11th. And tomorrow is his funeral, with the publication date of this blog set to have been his 74th birthday. I'm so grateful to have had the chance to know him and will deeply miss him.

On that note, I will be going over the dividend stocks that are on my watch list for October since this month is already more than half over.


Image Source: Pexels

Dividend Stock #1: Comcast (CMCSA)

As I indicated in my April 2022 Dividend Stock Watch List post, the telecom and media conglomerate Comcast is a balanced business with growth catalysts. Thanks to growth in its customer count, the company's first-half revenue increased 9.5% year-over-year to $61 billion. This led CMCSA's adjusted diluted EPS to surge 16.3% higher over the year-ago period to $1.86 through the first half of 2022 (info in the previous two sentences sourced from page 1 of 16 of Comcast Q2 2022 earnings press release).

Analysts are forecasting 10.2% annual earnings growth over the next five years. And given that the stock's dividend payout ratio will be less than 30% in 2022, there is plenty of room for the dividend to grow moving forward. This is an especially attractive proposition considering that CMCSA's dividend yield is 3.1%. At the current $35 share price, the cherry on top is that the stock is trading at a forward P/E ratio of 9.6.

Dividend Stock #2: Medifast (MED)

The weight loss and nutrition company Medifast has a short track record of dividend growth. But with dividend growth well into the double-digits annually during that time, it's an impressive one. MED's leadership in its industry is why analysts are anticipating 20% annual earnings growth over the next five years.

With the dividend payout ratio expected to come in under 60% in 2022, dividend growth should be pretty close to earnings growth for the foreseeable future. That's intriguing for a stock with a 5.5% dividend yield. And MED is trading at a forward P/E ratio of 11.1 at the current $119 share price. That's quite cheap for its long term growth potential.

Dividend Stock #3: STAG Industrial (STAG)

The third and final stock on my watch list for October is STAG Industrial. For the sake of brevity, I will refer interested readers to my recent Motley Fool article on STAG and Innovative Industrial Properties. Basically, STAG offers investors a 4.7% dividend yield that's also well-covered. And the company's e-commerce-oriented portfolio is poised to do well as the future unfolds. At the current $31 share price, STAG is trading at a TTM P/AFFO ratio of less than 15. This is arguably a solid value for a wonderful company.

Concluding Thoughts:

Another month, another three quality dividend stocks on my watch list in October. I very much look forward to adding to my positions in these stocks in the coming weeks. With the capital allocation that I'm planning for next month, my net annual forward dividends should be boosted by nearly $70 as a result of such purchases.

Discussion:

Are CMCSA, MED, and/or STAG on your watch list for next month?

If not, what stocks are on your radar for October?

I appreciate your readership and welcome your comments below.

Tuesday, September 13, 2022

August 2022 Dividend Stock Purchases

As I'm writing this blog post, it's mid-September. This unofficially means that summer is basically over here in Central Wisconsin, even though fall is still officially nearly two weeks away. This is reflected by the fact that the high temperature for today will be just 64 degrees Fahrenheit. And the next couple of days will be in the high-50 degrees Fahrenheit range.

With that aside, it's now time to dig into my dividend (and non-dividend) stock purchases for the month of August 2022.



I started off the month by adding six shares to my position in National Retail Properties (NNN) at an average cost of $47.34 a share. Readers interested in my rationale for this decision can refer to my August 2022 Dividend Stock Watch List post from a couple of months ago. This purchase boosted my net annual forward dividends by $13.20, which is equivalent to a 4.65% dividend yield.

My first non-dividend stock purchase during August was increasing my stake in Alphabet (GOOGL) by a share at a cost of $114.70. As I noted in my July 2022 Dividend Stock Purchases post, GOOGL dominates the digital advertising industry with the highest market share. And it isn't unreasonable to think that it will be an all-time great dividend growth stock in due time.

The other non-dividend stock addition for the month was Amazon (AMZN), which I added a share of at a cost of $140.01. Much like GOOGL is the unrivaled leader of the digital advertising industry, AMZN is the leader of cloud computing and e-commerce. This is why I will continue to add to my positions in the two stocks.

I also purchased two more shares of Visa (V) in August at an average cost per share of $213.57. The stock was also on my watch list for the month because of its leadership in the payments industry and the continued transition away from cash. This transaction added $3.00 to my net annual forward dividends, which works out to a 0.70% weighted average net yield.

Another dividend stock purchase that I executed for the month was two shares of Texas Instruments (TXN) at an average cost of $177.65 a share. I was compelled to add to my stake in the stock due to its industry leadership and the promising outlook of the semiconductor industry. The $9.20 in net annual forward dividends that resulted from this purchase equates to a 2.59% net dividend yield.

The final dividend (distribution) stock purchase that I completed in August was 26 units of Energy Transfer (ET) at an average cost per unit of $11.80. The $23.92 boost to net annual forward distributions from this purchase is equivalent to a 7.80% weighted average net yield.

Concluding Thoughts:

I deployed $1,627.90 in capital during the month of August. Given the $49.32 in net annual forward dividends that were added from these purchases, my weighted average net dividend yield was 3.03% for the month.

Along with the $9.284 in dividend increases that I received in the month, this propelled my net annual forward dividend income higher from just under $3,070 at the start of the month to just over $3,125 heading into September. For the rest of this year and possibly into early next year, I anticipate that my capital deployment will closely resemble that of August 2022 as I shift my priorities to regaining my health above all else.

Discussion:

How did your dividend stock purchases fare in August 2022?

Did you add any new holdings to your portfolio during the month?

Thanks for reading. Please feel free to comment below!

Tuesday, September 6, 2022

August 2022 Dividend Income

As I'm writing this blog post, it's the Saturday of Labor Day weekend. The temperatures will be in the low- to high-70 degrees Fahrenheit range over the next few days here in Central Wisconsin. That's why I will be getting outside as much as I can this weekend.

With that aside, I will turn my attention to my dividend income for the month of August since it is a few days in the books.




Analysis:

During August 2022, I received $209.05 in net dividends. This equates to a 13.7% quarterly growth rate compared to the $183.89 in net dividends collected in May 2022.

And my net dividends were 60.9% higher year-over-year against the $129.94 that I received in August 2021.

Digging more into my income, I collected $194.98 in net dividends from 29 companies in my Robinhood portfolio. Three companies within my Webull account chipped in another $13.70 in net dividends. And 16 companies in my M1 Finance portfolio contributed the remaining $0.37 in net dividends during the month.

The net dividends that I received from May 2022 to August 2022 surged $25.16 higher, which was the result of the following activity within my accounts:

I collected an extra $0.78 in net dividends from Williams-Sonoma (WSM) in my Robinhood portfolio, which was due to my addition of a share in April.

My net dividends received from British American Tobacco (BTI) dipped $0.52 within my Robinhood and Webull accounts. This was the result of unfavorable foreign currency translation with the dollar strengthening against the Pound sterling in recent months.

I collected an additional $1.80 in distributions from Energy Transfer (ET) in my Robinhood and Webull portfolios. This was due to the recent 15% hike in its quarterly distribution to $0.23 per unit.

My net dividends received from Main Street Capital (MAIN) edged $0.86 higher within my Robinhood account, which was the result of my purchase of four more shares back in May.

I collected an extra $0.01 in net dividends from Realty Income (O) in my Robinhood portfolio. This was due to the recent 0.2% increase in its monthly dividend per share.

My net dividends received from ONEOK (OKE) were boosted by $4.68 within my Robinhood account, which was the result of my purchase of five more shares in July.

I collected an additional $4.99 in net dividends from Kinder Morgan (KMI) in my Robinhood portfolio. This was due to my purchase of another 18 shares in June.

My net dividends received from National Retail Properties (NNN) inched $0.24 higher within my Robinhood account, which was the result of its 3.8% dividend raise in July.

I collected first-time net dividends of $3.36 from A.O. Smith (AOS) in my Robinhood portfolio. This was due to my purchase of 12 shares in April.

My net dividends received from Clorox (CLX) were $0.04 higher within my Robinhood account, which was the result of its 1.7% payout increase in July. 

I collected an extra $5.19 in net distributions from Magellan Midstream Partners (MMP) in my Robinhood portfolio. This was due to my purchase of five more units in July.

My net distributions received from Enterprise Products Partners (EPD) increased by $0.36 within my Robinhood and Webull accounts, which was the result of a 2.2% increase in its distribution per unit announced in July.

I collected an additional $1.25 in net dividends from Lowe's (LOW) in my Robinhood portfolio. This was due to its 31.3% hike in its quarterly dividend in May.

My net dividends received from General Mills (GIS) were $0.12 higher within my Robinhood account, which was the result of a 5.9% raise in the quarterly dividend per share declared in July.

I collected an extra $2.00 in net dividends from JPMorgan Chase (JPM) in my Robinhood portfolio. This was due to my purchase of two more shares in May.

Concluding Thoughts:

August 2022 was the first middle month of the quarter in which I surpassed $200 in net dividend income. My monthly capital deployment will likely be reduced for the next several months to $1,000 to $1,500. That's because I am again working through and trying to figure out some health issues that have bugged me the last several years. I haven't been able to exercise quite like I used to at the peak of my physical condition and haven't been able to enjoy my life as much.

For all of my content regarding financial independence, this is a good reminder that many things like health, faith, family, and country are each of high importance as well. Financial success certainly isn't the end all be all. Admittedly, I have lost sight of this fact from time to time.

If you're a Christian as I am or of another religion, I humbly ask for your prayers that I receive some answers from my upper endoscopy scheduled on Thursday, September 8. Otherwise, please keep me in your thoughts. I'm grateful for all of the support that I have received from readers over the years. And by the grace of God, I am hopeful that I will emerge on the other side of this storm as a better person.

Discussion:

How did your dividend income fare in August 2022?

Did you receive any dividend payments for the first time as I did with AOS?

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