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 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.

Dividend Increase #12: Starbucks (SBUX)

Starbucks declared an 8.2% raise in the quarterly dividend per share to $0.53.

My net annual forward dividends were lifted by $1.60 across my 10 shares of SBUX due to the hike.

Dividend Increase #13: Lockheed Martin (LMT)

Lockheed Martin upped its quarterly dividend per share by 7.1% to $3.00 as I expected.

Across my four shares of LMT, my net annual forward dividends soared $3.20 higher from the 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 seventh 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.

Expected Dividend Increase #8: McDonald's (MCD)

McDonald's didn't announce a dividend increase in October. 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.

Concluding Thoughts:

My net annual forward dividends were lifted by $20.114 with my 13 dividend increases. This would be equivalent to investing $574.69 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 $11.46 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, SBUX, TXN, USB, VICI?

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

2 comments:

  1. That's a lot of raises for you in September. Especially since you got two more before the end of the month both of which were spot on. October looks to be light on the increase front for me with just Visa and possibly XOM although there might be a 3rd now with MCD pushing past their usual September announcement.

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  2. Thanks for the comment. September was definitely jam-packed with raises. I think that's the most I've ever received in a month off the top of my head. October won't be too much of a dip for me either fortunately.

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