Expected Dividend Increases For August 2024

As I'm writing this blog post, it is July 19th. The temperature is going to reach a high of 79 degrees Fahrenheit today, which is arguably perfect for this time of year.

Now that the month is mostly complete, I believe it is a good time to discuss the dividend hikes that I received. I'll also look ahead to the dividend raises that I believe are on tap for August 2024.

Actual Dividend Increases For July 2024

Dividend Increase #1: Cummins (CMI)

Cummins announced an 8.3% boost in its quarterly dividend per share to $1.82. This was slightly better than my expectation of a 7.1% raise in the quarterly dividend per share to $1.70 in the previous blog post of this series.

Across my five shares of CMI, my net annual forward dividends grew by $2.80 from this dividend announcement.

Dividend Increase #2: Duke Energy (DUK)

Duke Energy declared a 2% increase in its quarterly dividend per share to $1.045, which was in line with my prediction.

My net annual forward dividends rose by $0.48 across my six shares of DUK due to this dividend declaration.

Dividend Increase #3: Enterprise Products Partners (EPD)

Enterprise Products Partners announced a 1.9% raise in its quarterly distribution per unit to $0.525. That was a bit below my projection of a 2.9% increase in its quarterly distribution per unit to $0.53.

Across my 75 units of EPD, my net annual forward distributions surged by $3 from this distribution announcement.

Dividend Increase #4: NNN REIT (NNN)

NNN REIT declared a 2.7% bump in its quarterly dividend per share to $0.58, which was what I predicted.

My net annual forward dividends grew by $1.08 across my 18 shares of NNN due to this dividend declaration.

Dividend Increase #5: J.M. Smucker (SJM)

J.M. Smucker announced a 1.9% raise in its quarterly dividend per share to $1.08. This was below the 3.8% increase in the quarterly dividend per share to $1.10.

Across my three shares of SJM, my net annual forward dividends edged $0.24 higher from this dividend announcement.

Dividend Increase #6: Albemarle (ALB)

Albemarle declared a 1.3% increase in its quarterly dividend per share to $0.405. My net annual forward dividends grew by $0.16 across my eight shares of ALB due to this dividend declaration.

Dividend Increase #7: Union Pacific (UNP)

Union Pacific announced a 3.1% raise in its quarterly dividend per share to $1.34. Across my four shares of UNP, my net annual forward dividends rose by $0.64 from this dividend announcement.

Dividend Increase #8: Wells Fargo (WFC)

This month, Wells Fargo made its 14.3% hike in its quarterly dividend per share to $0.40 official. Across my eight shares of WFC, this lifted my net annual forward dividends by $1.60 due to this declaration.

Pending Dividend Increase: Energy Transfer (ET)

Energy Transfer has yet to up its quarterly distribution per unit. However, I'm reiterating my expectation for a 0.8% increase in the quarterly distribution per unit to $0.32.

My net annual forward distributions could grow by $0.86 across my 86 units of ET from such an announcement.

UPDATE:

ET announced a 0.8% increase in its quarterly distribution per unit to $0.32. Across my 86 units of ET, my net annual forward dividends grew by $0.86 due to this announcement.

Expected Dividend Increases For August 2024

Expected Dividend Increase #1: Iron Mountain (IRM)

The first dividend increase that I'm expecting for next month will be from Iron Mountain. My best guess is that IRM will announce a 6.2% raise in its quarterly dividend per share to $0.69.

Across my 21 shares of IRM, my net annual forward dividends would grow by $3.36 from such an announcement.

Expected Dividend Increase #2: Main Street Capital (MAIN)

The next dividend bump that I'm predicting in August is from Main Street Capital. I believe that MAIN will declare a 2% increase in its monthly dividend per share to $0.25.

My net annual forward dividends would increase by $1.80 across my 30 shares due to such a declaration.

Expected Dividend Increase #3: Altria Group (MO)

The third dividend raise that I'm projecting for next month will be from Altria Group. My hunch is that MO will announce a 4.1% hike in it quarterly dividend per share to $1.02.

Across my 24 shares of MO, my net annual forward dividends would soar by $3.84 from such an announcement.

Expected Dividend Increase #4: Simon Property Group (SPG)

The next dividend bump that I'm expecting for August is from Simon Property Group. I believe that SPG will declare a 2.5% increase in its quarterly dividend per share to $2.05.

Across my nine shares of SPG, my net annual forward dividends would grow by $1.80 due to such a declaration.

Expected Dividend Increase #5: Essential Utilities (WTRG)

The final dividend increase that I'm predicting for next month will be from Essential Utilities. My best guess is that WTRG will announce a 6.8% raise in its quarterly dividend per share to $0.328.

My net annual forward dividends would rise by $1.756 across my 21 shares of WTRG from such an announcement.

Concluding Thoughts:

The nine dividend increases that I have received in July lifted my net annual forward dividends by $10.86. That's equivalent to investing $362 of fresh capital at a net dividend yield of 3%.

If the five dividend raises that I'm expecting for next month play out as anticipated, my net annual forward dividends could increase by $12.556. This would be like investing $418.53 of fresh capital at a net dividend yield of 3%.

Discussion:

How has your month been for dividend increases?

Did you receive any first-time dividend hikes this month?

Thanks for reading and please feel free to comment below!

August 2024 Dividend Growth Stock Watch List

As I'm writing this blog post, it is currently Friday, July 12th. The high temperature here in Central Wisconsin is set to reach 85 degrees Fahrenheit later today. That's exactly why after spending time with my nephew, I plan on getting outside later in the afternoon to enjoy the weather.

Now that the month of July is almost half over, it would be a good time to briefly cover the dividend growth stocks that are at the top of my watch list for August.

Dividend Stock #1: American Electric Power (AEP)

First up is American Electric Power (AEP). Interested readers can find my investment thesis in this Dividend Kings article from May.

The gist of the article is that AEP's 6% to 7% annual operating EPS growth prospects remain intact. The company's balance sheet remains investment-grade, with a BBB+ credit rating from S&P. AEP's low-60% payout ratio is better than the 75% payout ratio that rating agencies like to see per The Dividend Kings' Zen Research Terminal. Finally, the $91 share price (as of July 12, 2024) represents a moderate discount to my $100+ fair value estimate.

Dividend Stock #2: Realty Income (O)

The second dividend growth stock on my watch list for August 2024 is Realty Income (O). Last month, I updated my investment thesis on O in a Seeking Alpha article.

In my view, O can likely continue delivering almost 4% annual AFFO per share growth to shareholders. The ~6% dividend yield also looks to be quite secure, with a payout ratio in the mid-70% range. Topped off with shares trading 11% below my fair value estimate of $63 (from the current $56 share price), double-digit annual total returns appear to be a strong possibility from here in my opinion.

Dividend Stock #3: Visa (V)

Wrapping things up, Visa (V) is the third dividend growth stock on my watch list for next month. Readers can find my investment thesis from late April in this Seeking Alpha article.

At the time (and still now), I believed the company had a reasonable path to keep putting up annual adjusted diluted EPS growth in the teens. The 0.8% starting yield isn't much, but it's backed up by a payout ratio in the low-20% range. V also flexes an AA- credit rating from S&P. Finally, shares could be worth over $300 apiece. Against the current $266 share price (as of July 12), that's a compelling value for my money.

Concluding Thoughts:

So, that concludes my discussion of my highest conviction picks that I'd like to add to next month. Each of these pick are undervalued enough that I almost certainly don't see myself not buying them. The only exception would be if they somewhat rally and other world-class holdings in my portfolio experience unjustified selloffs.

Discussion:

Are any of AEP, O, and/or V on your watch list for August 2024?

If not, what dividend growth stocks are piquing your interest?

I appreciate your readership and welcome your comments below!

Happy Independence Day/Dividends Are Amazing

As I'm writing this blog post, it is currently July 4th. With this blog post set for publication on July 9th, nobody will see this until after the conclusion of Independence Day weekend. But I hope everybody has a great weekend of relaxation and gratitude with their families.

For those of us in the United States, this is none other than the birthday of our nation. This country owes a debt of gratitude to all of those who have fought, bled, and given life and limb for this country (and their families) in the last 248 years.

As a country, I believe we owe so much to those 56 brave signers of the Declaration of Independence on that July day in 1776 and thereafter. They essentially signed their own death warrants and committed treason against Great Britain, the most powerful nation in the world at that time.

It all started with them. They were rebels with a cause. Those men and their families were willing to risk their own lives and fortunes for the idea that we were endowed with inalienable rights granted to us by God.

On this day, I'm grateful to be an American. This country has its share of issues just like any other, but there's no other place I'd rather be right now. This is home.

I feel so very blessed to have the privilege of living out my life as I see fit. Arguably the biggest blessing in this country is our overall belief that we can strike out on our own paths and shape our own destiny.

Since I was 12 years old, I have been fascinated with dividend investing. For the last seven years, I have been a real-money dividend growth investor. For the majority of those years, my gross income was below $40,000. I never exceeded $70,000 in gross income in a given year.

Yet, consistently setting aside and investing capital is beginning to yield tangible results.

Image Source: Track Your Dividends

Thanks to my regular capital contributions of between $1,500 and $2,000 a month and current dividend income, the dividend snowball is finally starting to roll down the hill. My expenses could rise in the years to come. But as I develop my career, my income could as well. So, I think these contributions could be maintained.

If that turns out to be the case, my portfolio is on track to surpass $1 million in value and throw off $37,000 in annual dividend income by my 40th birthday. Even adjusting for an average annual inflation rate of 3.5%, this would be equivalent to almost $24,000 in annual dividend income in today's dollars. 

If I were to move out of my parents' house, I estimate this is what my annual expenses would be to live a relatively comfortable life.

I'm sharing all of this because it is so mindboggling to see the power of compounding work in your favor. As much momentum as my portfolio is starting to build up, I'm so excited that the best days are yet to come.

Concluding Thoughts:

In closing, I'm grateful to be living in a country that allows people to pursue their dreams, big and small. In my view, this wouldn't be possible without the sacrifices made by so many great people throughout the history of this country and God's divine providence.

God Bless America and Happy Independence Day to all of my fellow Americans!

Discussion:

How was your Independence Day weekend?

What's your American Dream?

As always, thanks for reading and please feel free to comment below!

June 2024 Dividend Income

As I'm writing this blog post, it is currently Thursday, June 27. The high temperature is going to reach 74 degrees Fahrenheit here in Central Wisconsin today. That is especially perfect weather for the summertime.

With that aside, I will be taking a moment to briefly discuss my net dividend income for June 2024.

Dividend Income Surpassed $500 For The Month

In June 2024, I received $520.75 in net dividends (accounting for ADR fees on BP dividend and withholdings on BAM dividends). Compared to the $476.12 in net dividends that I collected in March 2024, this equates to a 9.4% quarterly growth rate.

Against the $421.41 in net dividend that I received in June 2023, that works out to a 23.6% year-over-year growth rate.

My net dividends collected within my Charles Schwab portfolio were $367.36 from 47 companies. The sales of Digital Realty Trust (DLR) and International Business Machines (IBM) in May were mostly offset by numerous dividend increases in previous months.

I received $86.53 in net dividends from my Capital Income Builder (CAIBX) mutual fund within my former employer-sponsored retirement account. A higher share count from dividend reinvestment resulted in a slightly higher dividend payment.

My net dividends collected in my IRA were $49.18 from seven companies. That was thanks to the dividend stock purchases that I made within the portfolio in March, April, and May.

I received $17.19 in net dividends from six companies in my Webull account. This was incrementally lifted due to an 11.7% dividend hike from UnitedHealth Group (UNH).

Finally, I collected $0.49 in net dividends from 21 companies in my M1 Finance portfolio. 3M's (MMM) dividend cut and the timing of United Parcel Service's (UPS) dividend payment were the notable events here.

Concluding Thoughts:

Overall, I'm pleased with the progress that the portfolio has made in recent months. At the current pace, I anticipate I could pass $600 in net dividends in December (including special dividends from CAIBX). As I've noted in recent months, the psychological effect of compounding working in my favor is beginning to take hold. It's an especially momentous occasion for which I am very grateful!

Discussion:

How was your dividend income for June 2024?

Did you receive any first-time dividends as I did with ENB and NVDA during the month?

Thanks for your readership and I look forward to your comments below!

June 2024 Dividend Stock Purchases

As I'm writing this blog post, it is currently Monday, June 17. Summer is just three days away and the temperatures reflect this reality. Tomorrow is expected to top a high of 90 degrees Fahrenheit here in Central Wisconsin.

With that aside, my dividend stock purchases are largely complete for this month. So, I will be briefly covering my purchase activity for June 2024.

Dividend Stock Purchase #1: American Water Works (AWK)

My first dividend stock purchase for the month was four shares of American Water Works at an average cost of $128.39 a share. This lifted my net annual forward dividends by $12.24, which equates to a 2.38% net dividend yield.

Curious readers can review my June 2024 Dividend Stock Watch List blog post for my buying rationale.

Dividend Stock Purchase #2: VICI Properties (VICI)

The next dividend stock purchase that I made in June was 20 shares of VICI Properties at an average price per share of $28.35. This boosted my net annual forward dividends by $33.20, which works out to a 5.86% average dividend yield.

Interested readers can find my thoughts on VICI within the aforementioned June 2024 Dividend Stock Watch List blog post.

Dividend Stock Purchase #3: WEC Energy Group (WEC)

The final dividend stock purchase I completed for the month was seven shares of WEC Energy Group at an average cost of $79.22 a share. This increased my net annual forward dividends by $23.38, which is equivalent to a 4.22% net dividend yield.

My investment thesis for this purchase can also be found in my June 2024 Dividend Stock Watch List blog post.

Concluding Thoughts:

My net annual forward dividends grew by about $72 including reinvested dividends from my Capital Income Builder (CAIBX) retirement account. Overall, the $1,635.10 in capital that I deployed in my IRA was at a 4.21% weighted average dividend yield.

My net annual forward dividends grew by $9.034 from announced dividend increases during the month as well.

I also made downward adjustments to my dividends from GSK (accounting for the Haleon spin-off and currency translation) and for ADR fees/currency translation for BTI and ENB. Along with upward adjustments to CAIBX (assuming 2023 dividends and special dividends moving forward) and MAIN (including special dividends), I believe my dividends are more accurately accounted for in my spreadsheet now.

These actions resulted in a $47.66 increase in my net annual forward dividends. Overall, this is how my net annual forward dividends rose from $4,640 heading into June to nearly $4,770 exiting the month.

Discussion:

How was your capital deployment for June 2024?

Did you start any new positions during the month?

As always, I appreciate your readership and welcome your comments below!

Expected Dividend Increases For July 2024

As I'm writing this blog post, it is currently Friday, June 14. The temperature here in Central Wisconsin is expected to reach into the high-70 degrees Fahrenheit range this weekend. So, I definitely plan on getting outside and soaking in the sun a bit.

Today, I'll be going over the dividend raises that I have received for the month of June so far. I'll update this post as the anticipated raise from General Mills is announced later this month. Otherwise, I am also going to be looking ahead to the payout boosts that I'm expecting for July 2024.

Actual Dividend Increases For June 2024

Dividend Increase #1: UnitedHealth Group (UNH)

UnitedHealth Group announced an 11.7% hike in its quarterly dividend per share to $2.10. This was just below my expectation in this series' previous blog post of a 13.3% lift to $2.13. UNH has been such an outstanding dividend grower for so long that my expectations were just a bit high. I'll take a nearly 12% pay raise any day of the week for sure, though.

Across my five shares of UNH, my net annual forward dividends surged higher by $4.40 from this dividend announcement.

Dividend Increase #2: FedEx (FDX)

FedEx declared a 9.6% raise in its quarterly dividend per share to $1.38, which was what I anticipated.

My net annual forward dividends rose by $1.92 across my four shares of FDX due to this dividend declaration.

Dividend Increase #3: Realty Income (O)

Realty Income announced a 0.2% bump in it monthly dividend per share to $0.2630. This was what I expected.

Across my 39 shares of O, my net annual forward dividends grew by $0.234 from this dividend announcement.

Dividend Increase #4: Williams-Sonoma (WSM)

Williams-Sonoma declared a 0.9% increase in its quarterly dividend per share to $1.14. Having just raised its dividend back in March, this was an otherwise unusually timed announcement.

However, it was probably because the company just announced a 2:1 stock split. My guess is that the Board of Directors didn't want the quarterly dividend per share to be an odd amount (e.g., $0.565 per share).

My net annual forward dividends increased by $0.40 across my 10 shares of WSM due to this declaration.

Dividend Increase #5: Innovative Industrial Properties (IIPR)

Innovative Industrial Properties announced a 4.4% raise in its quarterly dividend per share to $1.90. 

Across my six shares of IIPR, my net annual forward dividends rose by $1.92 from this announcement.

Pending Dividend Increase

Pending Dividend Increase #1: General Mills (GIS)

General Mills hasn't yet upped its payout. When the company reports its fiscal fourth quarter results on June 26, I expect this to change. I'm reiterating my prediction for a 9.3% boost in the quarterly dividend per share to $0.59.

My net annual forward dividends would rise by $0.80 across my four shares if this dividend declaration plays out as projected.

Update:

GIS declared a 1.7% raise in its quarterly dividend per share to $0.60. My net annual forward dividends grew by $0.16 across my four share of GIS due to this dividend declaration.

Expected Dividend Increases For July 2024

Expected Dividend Increase #1: Cummins (CMI)

The first dividend raise that I'm expecting in July will come from Cummins. My best guess is that CMI will announce a 7.1% raise in its quarterly dividend per share to $1.80.

Across my five shares of CMI, my net annual forward dividends would rise by $2.40 from such an announcement.

Expected Dividend Increase #2: Duke Energy (DUK)

The next dividend increase that I'm anticipating for next month is from Duke Energy. I believe that DUK will declare a 2% raise in its quarterly dividend per share to $1.045.

My net annual forward dividends would rise by $0.48 across my six shares of DUK due to such a declaration.

Expected Dividend Increase #3: Enterprise Products Partners (EPD)

The third dividend/distribution raise that I'm predicting in July will come from Enterprise Products Partners. I project that EPD will announce a 2.9% bump in its quarterly distribution per unit to $0.53.

Across my 75 units of EPD, that would equate to a $4.50 boost in my net annual forward dividends/distributions from such an announcement.

Expected Dividend Increase #4: Energy Transfer (ET)

The next distribution increase that I'm expecting for next month is from Energy Transfer. My best guess is that ET will declare a 0.8% raise in its quarterly distribution per unit to $0.32.

My net annual forward distributions would grow by $0.86 across my 86 units of ET due to such a declaration.

Expected Dividend Increase #5: NNN REIT (NNN)

The fifth dividend bump that I'm anticipating in July will come from NNN REIT. I believe that NNN will announce a 2.7% increase in its quarterly dividend per share to $0.58.

Across my 18 shares of NNN, my net annual forward dividends would rise by $1.08 from such an announcement.

Expected Dividend Increase #6: J.M. Smucker (SJM)

The final dividend increase that I'm predicting for next month is from J.M. Smucker. I project that SJM will declare a 3.8% raise in its quarterly dividend per share to $1.10.

My net annual forward dividends would edge higher by $0.36 across my three shares of SJM due to such a declaration.

Concluding Thoughts:

I have received three of the four raises that I anticipated for June and two bonuses from WSM and IIPR. If the raise from GIS is what I expect, my net annual forward dividends would grow by $9.034 for the month. This would be like investing $301.13 at a weighted-average dividend yield of 3%.

For July 2024, my net annual forward dividends could rise by $9.68 if the six forecasted raises play out. That would be equivalent to investing $322.67 at a 3% yield.

Discussion:

How has your June 2024 been for dividend raises thus far?

Did you receive any first-time hikes this month?

Thank you for your readership and I look forward to your comments below!

July 2024 Dividend Stock Watch List

As I'm writing this blog post, it is currently Saturday, June 8. The high temperature is expected to reach 72 degrees Fahrenheit later today here in Central Wisconsin. It is also going to be partly sunny, so I plan to get outside later today for this perfect weather.

Now that I have made most of my purchases for the month of June, it's not too early to start thinking about my potential purchases for next month. Without further ado, here are three dividend stocks at the top of my list right now.

Dividend Stock #1: Brookfield Asset Management (BAM)

The first dividend stock on my watch list for June 2024 is Brookfield Asset Management (BAM). Readers interested in my full investment thesis for BAM can find it in this Seeking Alpha article from last month.

The gist of it is that BAM is a leading player within the growing alternative asset management industry. The company's A-rated balance sheet also had approximately $2.6 billion of liquidity as of March 31 against no long-term debt. The 4% dividend yield is well-covered and I also believe the payout is positioned for robust future growth. The stock also looks to be modestly discounted from the current $38 share price (as of June 8, 2024).

Dividend Stock #2: Essential Utilities (WTRG)

The next dividend stock that I'm thinking about adding to next month is Essential Utilities (WTRG). Last month, I provided my comprehensive investment thesis in a Seeking Alpha article.

Briefly, WTRG is a water utility that I believe can grow earnings by 6% to 7% annually long term. The balance sheet is also A-rated. The 3.3% dividend yield appears to be secure and set to keep growing by around 7% each year. Throw in considerable undervaluation and I believe double-digit annual total returns are likely from the current $37 share price (as of June 8, 2024).

Dividend Stock #3: Mastercard (MA)

The third dividend stock on my watch list for June 2024 is Mastercard (MA). My investment thesis remains unchanged from when I last covered MA on Seeking Alpha in January 2024.

As an established leader behind Visa (V) in the global payments industry, MA is well-positioned to keep benefiting from the transition toward cashless payments. This should lead to routine double-digit annual earnings growth. The 0.6% dividend yield leaves plenty of room for future dividend growth as well. If that wasn't enough, MA also possesses an A-rated balance sheet. The cherry on top is that I believe shares are modestly undervalued from the current $450 share price (as of June 8, 2024).

Concluding Thoughts:

Another month. Another three world-class dividend growth stocks. Absent meaningful rallies in BAM or MA (or a massive rally in WTRG), I'm looking forward to adding to my positions in these excellent businesses.

Discussion:

Are any of BAM, WTRG, or MA on your watch list for the coming weeks?

If not, what dividend stocks are on your radar?

Thanks for reading and please feel free to comment below!

May 2024 Dividend Income

As I'm writing this blog post on Wednesday, May 29, the high temperature is expected to reach 71 degrees Fahrenheit in Central Wisconsin. The forecast also calls for very little cloud cover, so the weather is ideal.

Putting that aside, the time of the month means that I will be going over my net dividend income for May 2024.

A New May/Middle Of The Quarter Month Record

In May 2024, I collected $365.82 in net dividends (after accounting for British American Tobacco's ADR fees). This is equivalent to a 4% quarterly growth rate compared to the $351.91 in net dividends received in February 2024.

My net dividends collected in May 2024 were also 32.3% higher versus the $276.48 in net dividends that my portfolio produced in May 2023.

I received $337.46 from 29 companies within my Charles Schwab account (formerly my Robinhood account). Dividend raises from the likes of Williams-Sonoma (WSM) and Realty Income (O) helped this account's net dividend income rise slightly.

My net dividends collected in my Webull portfolio from three companies amounted to $15.56 (net of ADR fees). Due to unfavorable foreign currency exchange for BTI, that explains the marginal decrease in net dividend income within this portfolio.

I received $12.41 in net dividends within my IRA from two companies. Additionally, Agree Realty (ADC) was a first-time dividend payer for the overall portfolio.

Finally, I collected $0.39 in net dividends from 16 companies in my M1 Finance account. A dividend raise from Procter & Gamble (PG) and the first dividend from Haleon (HLN) helped to lift these net dividends higher.

Concluding Thoughts:

There we have it. May 2024 was another month of progress for the portfolio. As I keep putting my capital to work in the IRA, my net dividends should keep climbing higher over time.

Discussion:

How did you fare with your net dividend income in May 2024?

Did you receive any first-time dividends during the month as I did with ADC?

I appreciate your readership and welcome your comments below!

May 2024 Dividend Stock Purchases/Sales

As I'm writing this blog post, it is currently May 17, 2024. The temperature is currently 76 degrees Fahrenheit and sunny here in Central Wisconsin. That's precisely why I plan on getting outside after finishing this blog.

With that aside, I'm done with my dividend stock purchases for the month with fresh capital (I may sell a few stakes and redeploy capital in my Charles Schwab account). So, I'll outline my dividend stock purchases in my IRA for May 2024.

Dividend Stock Purchase #1: Brookfield Asset Management (BAM)

My first dividend stock purchase that I completed during the month was 10 shares of Brookfield Asset Management (BAM) at an average cost of $40.07 a share. This boosted my net annual forward dividends by $1.52, which works out to a 3.79% net dividend yield.

Interested readers can check out my Seeking Alpha article published earlier this month to learn why I added to my stake in BAM.

Dividend Stock Purchase #2: McDonald's (MCD)

The next dividend stock purchase that I made in May was two shares of McDonald's (MCD) at an average price per share of $267.22. That increased my net annual forward dividends by $13.36, which equates to a 2.5% dividend yield.

Readers can peruse my May 2024 Dividend Stock Watch List blog post for my brief investment thesis on MCD.

Dividend Stock Purchase #3: NextEra Energy (NEE)

The third dividend stock purchase that I executed for the month was five shares of NextEra Energy (NEE) at an average cost of $73.83 per share. This raised my net annual forward dividends by $10.30, which is equivalent to a 2.79% net dividend yield.

Those interested in my investment thesis can find it in this Seeking Alpha article from late last month.

Dividend Stock Sales: Digital Realty Trust (DLR), Eastman Chemical (EMN), International Business Machines (IBM), and Omnicom (OMC)

I closed out my respective 10, 7, 6, and 7 share positions in the aforementioned stocks on May 21. Each of these stocks have delivered little to no dividend growth for the last two to three years.

So, I was happy to cut ties with them. I received $3,845.47 in total capital proceeds from those sales and lost $131.16 in net annual forward dividends from the transactions.

Dividend Stock Capital Redeployment: Nvidia (NVDA), Philip Morris International (PM), British American Tobacco (BTI), and Enterprise Products Partners (EPD)

I rolled these proceeds into a starter position of two shares of Nvidia (NVDA) at an average cost of $951.59 a share. I also added six shares of Philip Morris International (BTI) at $100.43 apiece. I boosted my position in British American Tobacco (BTI) by 21 shares at an average cost of $31.50 each. Lastly, I upped my stake in Enterprise Products Partners (EPD) by 23 units at an average price per unit of $28.65.

As I put $3,826.31 in capital back to work, this helped me to increase my emergency fund (a bit more) by $19.16. I also lifted my net annual forward dividends by $10.11 after factoring in the loss of dividends with my four sales.

Overall, I believe this basket is going to meaningfully outperform my previous basket in relatively safe starting income, income growth, and capital appreciation.

Concluding Thoughts:

On the dividend stock purchases that I completed with my own capital, I deployed $1,304.25 in May. This boosted my net annual forward dividends by $38.86, which is a weighted average net dividend yield of 2.98%.

Combined with the $9.414 lift in my net annual forward dividends from dividend increases and the capital redeployment, my net annual forward dividends grew from $4,580 to $4,640.

Discussion:

How was your capital deployment this month?

Did you open any new positions?

Thanks for reading and please feel free to drop a comment below!

Expected Dividend Increases For June 2024

As I'm writing this blog post on Monday, May 13th, the temperature is currently expected to reach a high of 75 degrees Fahrenheit here in Central Wisconsin. Other than wildfires in Canada currently impacting air quality, the weather is perfect today.

Now that all but two of my anticipated dividend increases for May have already been announced, I will be going over those dividend increases and looking ahead to the ones on tap for next month.

Actual Dividend Increases For May 2024

Dividend Increase #1: American Water Works (AWK)

As I noted in the previous post of this series, American Water Works announced an 8.1% raise in its quarterly dividend per share to $0.765. This was in line with my prediction.

Across my four shares of AWK, my net annual forward dividend rose by $0.92 as a result of this dividend announcement.

Dividend Increase #2: Main Street Capital (MAIN)

Main Street Capital declared a 2.1% increase in its monthly dividend per share to $0.245. That was also what I anticipated.

My net annual forward dividends surged $1.80 across my 30 shares of MAIN due to this dividend declaration.

Dividend Increase #3: RTX Corp (RTX)

RTX Corp announced a 6.8% raise in its quarterly dividend per share to $0.63. This was also what I forecasted.

Across my 12 shares of RTX, my net annual forward dividends were boosted by $1.92 as a result of this dividend announcement.

Dividend Increase #4: Simon Property Group (SPG)

Simon Property Group (SPG) declared a 2.6% increase in its quarterly dividend per share to $2. That was also on par with my expectations.

My net annual forward dividends rose by $1.80 across my nine shares of SPG due to this dividend declaration.

Dividend Increase #5: Realty Income (O)

Realty Income announced a 2.1% raise in its monthly dividend per share to $0.2625. Across my 39 shares of O, my net annual forward dividends grew by $2.574 from this announcement.

Pending Dividend Increase: Medtronic (MDT)

Medtronic also hasn't yet boosted its dividend, but I'd expect this to occur on May 23, with the release of its fiscal fourth quarter earnings. My expectation remains that MDT will up the quarterly dividend per share by 1.4% to $0.70.

UPDATE:

Just as expected, MDT announced a 1.4% raise in its quarterly dividend per share to $0.70. My net annual forward dividends increased by $0.52 across my 13 shares of MDT from this raise.

Pending Dividend Increase: Lowe's (LOW)

Lowe's hasn't yet announced its dividend hike, but I would anticipate this will happen with the release of its fiscal first quarter earnings on May 21. I continue to believe that LOW will up the quarterly dividend per share by 4.5% to $1.15.

Across my 10 shares of LOW, my net annual forward dividends would grow by $2 from such an announcement.

UPDATE:

As anticipated, LOW declared a 4.5% increase in its quarterly dividend per share to $1.15.

My net annual forward dividends grew by $2 across my 10 shares due to this declaration.

Expected Dividend Increases For June 2024

Expected Dividend Increase #1: FedEx (FDX)

The first dividend boost that I'm expecting for June will come from FedEx. My best guess is that FDX will announce a 9.6% increase in its quarterly dividend per share to $1.38.

Across my four shares of FDX, my net annual forward dividends would rise by $1.92 from such an announcement.

Expected Dividend Increase #2: General Mills (GIS)

The next payout raise that I'm anticipating for next month will be from General Mills. I believe that GIS will declare a 9.3% boost in its quarterly dividend per share to $0.59.

My net annual forward dividends would increase by $0.80 across my four shares of GIS due to such a declaration.

Expected Dividend Increase #3: Realty Income (O)

The third dividend bump that I'm predicting for June will come from Realty Income. I anticipate that O will announce a 0.2% raise in its monthly dividend per share to $0.2630.

Across my 39 shares of O, my net annual forward dividends would grow by $0.234 from such an announcement.

Expected Dividend Increase #4: UnitedHealth Group (UNH)

The next dividend boost that I'm expecting for June will be from UnitedHealth Group. My best guess is that UNH will declare a 13.3% hike in its quarterly dividend per share to $2.13.

My net annual forward dividends would rise by $5 across my five shares of UNH due to such a declaration.

Concluding Thoughts:

The seven dividend raises that I received in May boosted my net annual forward dividends by $11.534. This would be equivalent to investing $384.47 at a 3% net dividend yield.

If dividend announcements work out as I expect, my net annual forward dividends would rise by $7.954 in June. That would be like investing $265.13 at a 3% weighted-average dividend yield.

Discussion:

How was your month for dividend increases?

Did you receive any first-time dividend boosts in May 2024?

I appreciate your readership and welcome your comments below!

June 2024 Dividend Stock Watch List

As I'm writing this blog post, it is Monday, May 6. The weather is going to be perfect today here in Central Wisconsin, with clear skies and the temperature expected to hit a high of 75 degrees Fahrenheit. 

The first week of the month is almost over. So, now would be a good time to take a look at three dividend stocks that are top of mind for purchases next month.

Dividend Stock #1: American Water Works (AWK)

First up is the water utility, American Water Works (AWK). Interested readers can check out my Seeking Alpha article from earlier this month to learn why I would like to up my weighting in the stock.

Basically, AWK is a steady grower and the most recent quarterly results reinforce my belief that this won't be ending anytime soon. The 8.1% dividend hike announced just days ago is supported by the low payout ratio. Lastly, I believe shares could be worth approximately $141 each, which would be a decent discount from the current $130 share price.

Dividend Stock #2: VICI Properties (VICI)

The next dividend stock on my watch list is VICI Properties (VICI). For a deeper dive into why I like VICI, readers can peruse my Seeking Alpha article from last month.

Simply put, VICI's near-6% dividend yield can be sustained by FFO per share generation. Consistent FFO per share growth can also power future dividend growth. Finally, shares could be worth $35 apiece. That would be a moderate discount versus the current $29 share price.

Dividend Stock #3: WEC Energy Group (WEC)

The third stock on my watch list is WEC Energy Group (WEC). Readers can take a look at my Seeking Alpha article published today for my updated investment thesis.

Basically, I think WEC's latest quarterly results back up my argument that it is just a few years away from becoming a Dividend Aristocrat. The company's earnings are consistently growing. For a utility, the payout is also conservative. In closing, WEC could be worth $96 a share - - a double-digit percentage discount from the current $82 share price.

Concluding Thoughts:

There we have it. The names and the month may change, but the story stays the same. Three more businesses that I believe are high-quality and undervalued. Thus, why I'm likely going to be adding to each next month.

Discussion:

Are any of AWK, VICI, or WEC on your watch list for the foreseeable future?

If not, what stocks are you currently watching?

Thanks for your readership. I look forward to your comments below!

April 2024 Dividend Income

As I'm writing this blog post, it is currently Wednesday, May 1. The temperature is expected to reach a high of 68 degrees Fahrenheit here in Central Wisconsin. That's why aside from my usual treadmill and weights routine, I plan on getting outside for at least a half an hour to an hour later today.

With that aside, a new month means now is a great time to reflect on my portfolio's net dividend income for April 2024. Without further ado, I'll jump into it!

A Decent Month Considering Recent Portfolio Activity

During April 2024, I received $246.69 in net dividends. This was 7.2% less than the $265.76 in net dividends that I collected in January 2024. However, when adjusting for some special items, my net dividends would have grown by 6.4% in April over that month.

Via my forced sale of Spirit Realty (SRC) to Realty Income (O) due to the latter's acquisition, this was a $7.06 hit to my net dividends. My sale of Leggett & Platt (LEG) in January was a $14.72 drag on my net dividends. The timing of Digital Realty Trust's (DLR) dividend also weighed on my net dividends to the tune of $12.20.

Against the $222.78 in net dividends that I received in April 2023, this was a 10.7% year-over-year growth rate (before accounting for the above items).

In my Charles Schwab account, I collected $236.23 in net dividends from 27 companies. The aforementioned headwinds from SRC, LEG, and DLR were partially offset by dividend raises.

My net dividends received from four companies in my Webull account were unchanged at $10.24.

Concluding with my M1 Finance account, I collected $0.22 in net dividends from nine companies. This was also the same as January 2024.

Concluding Thoughts:

My net dividends dipped below $250 in April. But moving forward, they should climb back above that in July and beyond. Besides dividend increases, this is because of my dividend stock purchases made in March 2024.

Discussion:

How was your dividend income last month?

Did you collect any first-time dividends in April 2024?

As always, thanks for reading and please feel free to comment below!

April 2024 Dividend Stock Purchases

As I'm writing this blog post on Friday, April 26th, it is currently 60 degrees Fahrenheit and raining. After showers earlier in the week as well, this should help to green up that grass!

Now that April is nearly concluded, I will turn my attention to the dividend stock purchases that I executed during the month.

Dividend Stock Purchase #1: PepsiCo (PEP)

In alphabetical order, my first dividend stock purchase this month was an additional seven shares of PepsiCo (PEP) at an average cost of $168.47 a share. This was a $38.22 boost to my net annual forward dividends, which equates to a 3.24% net dividend yield.

As I noted in my April 2024 Dividend Stock Watch List blog post, interested readers can check out last September's Seeking Alpha article for my investment thesis.

Dividend Stock Purchase #2: Starbucks (SBUX)

My next dividend stock purchase for the month was 13 shares of Starbucks (SBUX) at an average price per share of $85.98. This purchase lifted my net annual forward dividends by $29.64, which works out to a 2.65% net yield.

Readers who want to learn more about my investment thesis for SBUX can check out the April 2024 Dividend Stock Watch List blog post that I linked to earlier.

Dividend Stock Purchase #3: UnitedHealth Group (UNH)

My final dividend stock purchase during April was two shares of UnitedHealth Group (UNH) at an average cost of $451.14 a share. This transaction increased my net annual forward dividends by $15.04, which is equivalent to a 1.67% net dividend yield.

For my investment thesis, readers can peruse my February Seeking Alpha article.

Concluding Thoughts:

I put $3,199.31 of capital to work in April. Against the $82.90 in net annual forward dividends, that is a 2.59% weighted average net dividend yield.

Combined with the $19.88 in dividend increases/initiated dividends for the month, my net annual forward dividends climbed from around $4,480 to approximately $4,580 to conclude April.

Discussion:

How was your capital deployment for April 2024?

Did you open any new positions?

I appreciate your readership and welcome your comments below!

Expected Dividend Increases For May 2024

As I'm writing this blog post on Friday, April 19th, it is currently 45 degrees Fahrenheit here in Central Wisconsin. For this time of the year, that's a bit on the chilly side. But the good news is that a warming trend is right around the corner, with temperatures expected to reach into the 60s by early next week.

With that aside, I will discuss the dividend increases that I have received thus far in April. At this time, there are still three dividend raises that I'm waiting for yet and still expect. As they come in next week, I will update this blog post accordingly. Also, I will go over the payout hikes that I'm expecting for next month.

Actual Dividend Increases For April 2024

Dividend Increase #1: Agree Realty (ADC)

Agree Realty announced a 1.2% raise in its monthly dividend per share to $0.25. Across my 20 shares of ADC, my net annual forward dividends grew by $0.72 due to this dividend announcement. As I will outline in next week's blog post, this was my first raise from ADC as I just opened a position last month.

Dividend Increase #2: Johnson & Johnson (JNJ)

Johnson & Johnson declared a 4.2% increase in its quarterly dividend per share to $1.24. This was below my expectation of a 5.9% bump to $1.26.

My net annual forward dividends rose by $1 across my five shares of JNJ as a result of this dividend declaration.

Dividend Increase #3: Tanger Inc. (SKT)

Tanger Inc. announced a 5.8% lift in its quarterly dividend per share to $0.275, which was what I anticipated.

Across my 11 shares of SKT, my net annual forward dividends climbed by $0.66 due to this dividend announcement.

Pending Increases: Energy Transfer (ET), International Business Machines (IBM), and Southern Company (SO)

These companies haven't yet announced their dividends/distributions, but here is what I am expecting from my previous post of the series for each:

ET: 0.8% raise to $0.3175, which would be an $0.86 lift to my net annual forward dividends across my 86 units.

UPDATE: 

As anticipated, ET declared a 0.8% raise in its quarterly distribution per unit to $0.3175. This lifted my net annual forward distributions by $0.86 across my 86 units.

IBM: 0.6% increase to $1.67, which would be an additional $0.24 in net annual forward dividends across my six shares.

UPDATE: 

As expected, IBM upped the quarterly dividend per share by 0.6% to $1.67.

SO: 2.9% increase to $0.72, which would be an additional $0.40 in net annual forward dividends across my five shares.

UPDATE:

As I expected, SO announced a 2.9% raise in its quarterly dividend per share to $0.72. This was a $0.40 lift to my net annual forward dividends.

Surprise Announcement: Alphabet (GOOGL)

GOOGL initiated a $0.20 quarterly dividend per share. This boosted my net annual forward dividends by $16 across my 20 shares of GOOGL.

Expected Dividend Increases For May 2024

Expected Dividend Increase #1: Lowe's (LOW)

The first dividend increase that I'm expecting for May that hasn't already happened will be from Lowe's. My best guess is that LOW will raise the quarterly dividend per share by 4.5% to $1.15.

Across my 10 shares of LOW, my net annual forward dividends would rise by $2 from such an announcement.

Expected Dividend Increase #2: Main Street Capital (MAIN)

The second raise that I believe will happen next month that hasn't been declared yet will come from Main Street Capital. I believe that MAIN will declare a 2.1% increase in its monthly dividend per share to $0.245.

My net annual forward dividends would grow by $1.80 across my 30 shares of MAIN due to such a declaration.

Expected Dividend Increase #3: Medtronic (MDT)

The next dividend bump that I'm projecting for May that has yet to be announced will be from Medtronic. My prediction is that MDT will increase the quarterly dividend per share by 1.4% to $0.70.

Across my 13 shares of MDT, my net annual forward dividends would rise by $0.52 from such an announcement.

Expected Dividend Increase #4: Simon Property Group (SPG)

The final dividend raise that I'm expecting for next month that hasn't been announced to date will come from Simon Property Group. My best guess is that SPG will up the quarterly dividend per share by 2.6% to $2.

My net annual forward dividends would grow by $1.80 across my nine shares of SPG due to such a declaration.

Dividend Increase #1: RTX Corp (RTX)

RTX announced a 6.8% raise in it quarterly dividend per share to $0.63, which was what I anticipated.

Across my 12 shares, this lifted my net annual forward dividends by $1.92.

Dividend Increase #2: American Water Works (AWK)

AWK declared an 8.1% boost in its quarterly dividend per share to $0.765, which was in line with my prediction.

This was a $0.92 boost to my net annual forward dividends across my four shares of AWK.

Concluding Thoughts:

The six dividend raises and one dividend initiation that I received in April amount to a $19.88 lift to my net annual forward dividends. At a 3% dividend yield, this would be equivalent to investing $662.67 in fresh capital.

The two raises in May thus far and four that I'm still expecting could be an $8.96 boost to my net annual forward dividends. This would be like investing $298.67 in fresh capital at a 3% average dividend yield.

Discussion:

How was your April for dividend raises?

Did you receive any first-time payout boosts as I did with ADC or first-time payouts like I did with GOOGL?

Thank you for reading and please feel free to comment below!

May 2024 Dividend Stock Watch List

As I'm writing this blog post on Saturday, April 6th, the temperature here in Central Wisconsin is expected to reach a high of 54 degrees Fahrenheit. Needless to say, that's quite nice for this time of year.

Without further ado, I will be sharing three of the dividend stocks at the top of my watch list for May 2024.

Image Source: Pexels

Dividend Stock #1: Brookfield Asset Management (BAM)

The first stock on my watch list for next month is Brookfield Asset Management (BAM). Since my previous Seeking Alpha article in February, my investment thesis is unchanged.

Simply put, BAM is a proven and leading player in the growing alternative asset management industry. This should position the company for continued double-digit annual distributable EPS growth in the years ahead. As a bonus, the balance sheet is A-rated and arguably robust. BAM isn't a bargain at the current $41 share price (as of April 6, 2024), but it's trading close to fair value. For a company of its quality, this makes it an interesting buy to me. Thus, I'm considering upping my weighting from 1% to almost 2% next month.

Dividend Stock #2: McDonald's (MCD)

The next stock on my watch list for May 2024 is McDonald's (MCD). The investment thesis for MCD is the same as it was last month when I covered the stock for The Dividend Kings and iREIT on Alpha (fair warning, it's behind a paywall).

Basically, McDonald's loyalty program continued to grow in Q4 to over 150 million 90-day active users. The company thinks that it can grow to 250 million active users by 2027, which could provide even more stability and growth to its revenue/earnings base. The 2.5% payout is well-covered by free cash flow and shares are a solid value in my opinion at the current $267 price (as of April 6, 2024). That's why I am seriously considering doubling up my position next month to a nearly 1.5% weighting.

Dividend Stock #3: NextEra Energy (NEE)

The third and final stock on my watch list for next month is NextEra Energy (NEE). My investment thesis for NEE is similar to when I last covered it in January on Seeking Alpha.

Essentially, NEE has a track record of steady earnings growth and is a Dividend Aristocrat that has handed out 10% dividend hikes in recent years. The payout also appears to be quite sustainable. Lastly, the valuation could be interesting at the current $64 share price (as of April 6, 2024). This is why I'm interested in boosting my weighting from 0.7% to around 1.5% in May.

Concluding Thoughts:

Voila! Another watch list and another trio of world-class dividend growth stocks in my view. Barring massive rallies, I'm looking forward to increasing my stakes in these three great businesses next month.

Discussion:

Are any of BAM, MCD, or NEE on your watch list for May 2024?

If not, what stocks are on your radar for next month?

I appreciate your readership and welcome your comments below!

March 2024 Dividend Income

As I'm writing this blog post, it's April 3rd. My paternal grandma is officially 86 years old today! After a relatively warm March, the weather has cooled off in recent days to start April here in Central Wisconsin. The temperature today is 34 degrees Fahrenheit and the ground is covered with a few inches of snow.

I'm not complaining, though. We have had limited snowfall so far this season and not much rain, either. So, I'll take precipitation however we can get it for the grass to get greened up.

Now that March is in the books, I will take a look at my dividend income for the month.

Nearing A Major Milestone For The Portfolio

In March 2024, I received $476.12 in net dividends (adjusting for ADR fees on BP dividends and withholdings on BAM dividends). Against the $529.78 in net dividends that I collected in December 2023, that's a -10.1% quarterly growth rate. Factoring out $81.26 in special dividends received from CAIBX (net of the $10 annual fee), my net dividend income was up 6.2%.

Compared to the $392.62 in net dividends that I collected in March 2023, this is a 21.3% year-over-year growth rate.

My residual Robinhood net dividends and Charles Schwab net dividends totaled $372.66 from 47 companies. This was driven by dividend raises announced in December, January, and February. The timing of an $8.15 dividend payment from United Parcel Service (UPS) also played a role in the income derived within these accounts.

I received $85.96 in regular net dividends from my Capital Income Builder or CAIBX mutual fund within my retirement account. That was due to a raise in the quarterly dividend per share and a higher share count from dividend reinvestment.

My net dividends collected in my Webull account from six companies were $16.97. This was the result of Prudential Financial's (PRU) 4% raise in the quarterly dividend per share announced in February.

In my M1 Finance account, the timing of UPS' dividend payment offset the timing of Fastenal's (FAST) dividend payment. Along with an extra $0.01 each from Aflac (AFL), Amgen (AMGN), and NextEra Energy (NEE) stemming from recent dividend hikes, this is how my net dividends were $0.53 from 22 companies.

Concluding Thoughts:

My portfolio is edging closer to generating $500 in monthly net dividends for the months of March, June, and September, as I surpassed $500 in December with special dividends from my CAIBX holding included. Overall, I hope to be blessed enough to continue this journey in the months and years that lie ahead. After years of hard work and (mostly) diligent capital deployment, it's starting to pay off!

Discussion:

How was your dividend income in March 2024?

Did you collect any special dividends or first-time dividends during the month?

Thanks for reading and please feel free to comment below!

March 2024 Dividend Stock Purchases

As I'm writing this blog post, it's Wednesday, March 27th. The high temperature is expected to reach 34 degrees Fahrenheit here in Central Wisconsin today. Good Friday and Easter weekend are shaping up to be very warm, with the high temperatures reaching into the 50s. So, it will be a great time to for me to spend time with family, praise my Lord and savior, Jesus Christ, and get outside!

Now that there is just one trading day left in the month, it is time to discuss my dividend stock purchases for March 2024.

Dividend Stock Purchase #1: Automatic Data Processing (ADP)

I started off my purchases today and for this month by purchasing four more shares of Automatic Data Processing (ADP) at an average price per share of $247.72. The $22.40 that this transaction added to my portfolio's net annual forward dividends was equivalent to a 2.26% net dividend yield.

Interested readers can check out a link to my buying rationale in my March 2024 Dividend Stock Watch List blog post.

Dividend Stock Purchase #2: Agree Realty (ADC)

Next, I opened a 20 share position in Agree Realty (ADC) at an average cost of $56.55 apiece. The $59.28 in net annual forward dividends that this purchase added to my portfolio worked out to a 5.24% net dividend yield.

Similar to ADP, readers can find a link to my investment thesis for ADC in the March 2024 Dividend Stock Watch List blog post that I noted earlier.

Dividend Stock Purchase #3: Enbridge (ENB)

Finally, I started a 31 share position in Enbridge (ENB) at an average cost of $35.82 each. This transaction lifted my net annual forward dividends by $83.70, which equated to a 7.54% net dividend yield.

Like ADP and ADC, a link to my buying explanation for ENB can also be found in the March 2024 Dividend Stock Watch List blog post.

Concluding Thoughts:

After seven months of not deploying fresh capital to shore up my emergency fund, I deployed $3,232.17 in capital in March 2024. Compared to the $165.38 in net annual forward dividends added by these purchases, that's a 5.12% weighted average net dividend yield.

Along with $14.184 in dividend increases during the month, my net annual forward dividends grew to nearly $4,480 heading into April.

Discussion:

How was your capital deployment in March 2024?

Did you open any new positions as I did with ADC and ENB?

Please feel free to comment below and I hope everyone has/had a blessed Easter!

April 2024 Dividend Stock Watch List

As I'm writing this blog post, it's March 18th. The temperatures have cooled off considerably in the last week, with the high set to reach just 37 degrees Fahrenheit today. That's a far cry from the temperatures ranging in the 50s to 60s just a few days ago.

I haven't yet purchased any of the stocks on my March 2024 Dividend Stock Watch List, but plan to in the coming days. With the month more than half over, I will now be looking ahead to April 2024. Here are three of the stocks on my watch list for next month.

Image Source: Pexels

Dividend Stock #1: PepsiCo (PEP)

The first stock on my watch list for April 2024 is PepsiCo (PEP). Since my investment thesis is unchanged from my Seeking Alpha article last September, interested readers can check out that article.

In a nutshell, PEP's 3.1% dividend yield is sustainable. Thanks to healthy profitability and industry leadership, the company possesses an A-rated balance sheet. Shares also appear to be slightly undervalued at the current $171 share price (as of March 18, 2024). That's why I'm looking to up my weighting from 0.9% to between 1.5% and 2%.

Dividend Stock #2: Starbucks (SBUX)

The next stock on my watch list for next month is Starbucks (SBUX).

The holding currently comprises 0.8% of my portfolio, which I wouldn't mind ultimately doubling. Starbucks looks to have plenty of room to grow yet: The company is targeting 55,000 stores in the long-term, which is well above its mark of nearly 39,000 as of Dec. 31, 2023.

Couple that with margin expansion and this could support double-digit non-GAAP EPS growth annually for the foreseeable future. Free cash flow also covered the dividend nearly three times over in its fiscal first quarter per the Q1 2024 Press Release that I linked above, which suggests the payout can keep growing at a strong rate. Along with a 2.5% dividend yield and what I believe to be moderate undervaluation from the current $91 share price (as of March 18, 2024), this is why I'm interested in doubling my position.

Dividend Stock #3: UnitedHealth Group (UNH)

The third stock on my watch list for April 2024 is UnitedHealth Group (UNH). Since my previous Seeking Alpha article last month, my investment thesis remains unchanged.

UNH is a dividend growth machine with more than enough free cash flow to support further dividend growth. That makes an otherwise pedestrian 1.5% dividend yield quite attractive to me. It's how I anticipate the dividend will again double in the next five years. Shares also could be somewhat discounted at the current $487 share price (as of March 18, 2024). This is why I wouldn't mind increasing my weighting of UNH from the current 1.3% to around 2%.

Concluding Thoughts:

So, that's the trifecta of dividend growth stocks I'm seriously considering adding to next month. In my opinion, these are each respectively three of the best businesses in the world. I'm pleased to own all three of them and even more pleased that I will likely be owning more of them in the coming weeks.

Discussion:

Are any of PEP, SBUX, or UNH on your watch list for next month?

If not, what stocks are you paying attention to for April 2024?

Thanks for reading and please feel free to comment below!

Expected Dividend Increases For April 2024

As I'm writing this blog post, it's the ides of March. The temperature is currently 52 degrees Fahrenheit here in Central Wisconsin, with the high temperature expected to edge another 2 degrees higher to 54 later today. Needless to say, that's warm for this time of year.

All of my anticipated dividend hikes for this month have already played out. So, with that being the case, I will reminisce on these raises and how they compared to my expectations. I'll also look ahead to the payout boosts that I'm predicting for April. Let's dig into it!

Actual Dividend Increases For March 2024

Dividend Increase #1: Williams-Sonoma (WSM)

Williams-Sonoma announced a massive 25.6% boost in its quarterly dividend per share to $1.13. This was approximately quadruple the 6.7% raise to $0.96 that I was anticipating.

That's why I'm pleased this is my portfolio's fourth-biggest holding.

Across my 10 shares of WSM, my net annual forward dividends were lifted higher by $9.20 due to this dividend announcement.

Dividend Increase #2: TJX Companies (TJX)

TJX Companies declared a 12.8% hike in its quarterly dividend per share to $0.375, which was ahead of the 11.3% increase to $0.37 that I projected.

My net annual forward dividends surged $1.87 higher from this dividend declaration across my 11 shares of TJX.

Dividend Increase #3: General Dynamics (GD)

General Dynamics announced a 7.6% raise in its quarterly dividend per share to $1.42. Once again, this was better than the 6.1% bump to $1.40 that I predicted.

Across my six shares of GD, my net annual forward dividends grew by $2.40 due to this dividend announcement.

Dividend Increase #4: Realty Income (O)

Realty Income declared a 0.2% increase in its monthly dividend per share to $0.2570, which was in line with my expectations.

My net annual forward dividends rose by $0.234 across my 39 shares of O from this dividend declaration.

Dividend Increase #5: JPMorgan Chase (JPM)

On Mar. 19, JPMorgan Chase announced a 9.5% hike in its quarterly dividend per share to $1.15. This came as a complete surprise to me, but I'll definitely take it!

Across my six shares of JPM, my net annual forward dividends grew by $2.40 due to this dividend announcement.

Dividend Freeze: Dollar General (DG)

Dollar General announced that it was holding its quarterly dividend per share at $0.59. This was less than the 6.8% raise to $0.63 that I was anticipating.

Dividend Cut: American Tower (AMT)

American Tower declared a quarterly dividend per share of $1.62. This represented a 4.7% reduction versus the $1.70 dividend per share declared in the fourth quarter. That was consistent with what the company conveyed in the Q3 2023 Earnings Call, though. AMT will likely declare $6.48 in dividends per share in 2024, which will be marginally higher than the $6.45 declared in 2023.

The expectation remains that strong dividend growth will resume in 2025 after the company has completed desired deleveraging. This is why I will continue to hold, even after a technical dividend cut.

Across my six shares of AMT, my net annual forward dividends declined by $1.92 due to this dividend declaration.

Expected Dividend Increases For April 2024

Expected Dividend Increase #1: FedEx (FDX)

My best guess is that FedEx will announce a 9.5% hike in its quarterly dividend per share to $1.38.

If this played out, my net annual forward dividends would grow by $1.92 across my four shares of FDX from such an announcement.

Expected Dividend Increase #2: Tanger Inc. (SKT)

I believe Tanger Inc. will declare a 5.8% raise in its quarterly dividend per share to $0.275.

Across my 11 shares, such a declaration would result in a $0.66 increase in my net annual forward dividends.

Expected Dividend Increase #3: American Water Works (AWK)

My prediction is that American Water Works will announce an 8.1% hike in the quarterly dividend per share to $0.765.

My net annual forward dividends would rise by $0.92 across my four shares of AWK from such an announcement.

Expected Dividend Increase #4: RTX Corp (RTX)

My best guess is that RTX Corp will declare a 6.8% increase in its quarterly dividend per share to $0.63.

Across my 12 shares of RTX, my net annual forward dividends would grow by $1.92 due to such a declaration.

Expected Dividend Increase #5: Johnson & Johnson (JNJ)

I believe Johnson & Johnson will announce a 5.9% raise in its quarterly dividend per share to $1.26.

My net annual forward dividends would be lifted by $1.40 from such an announcement across my six shares of JNJ.

Expected Dividend Increase #6: Southern Company (SO)

My prediction is that Southern Company will declare a 2.9% increase in its quarterly dividend per share to $0.72.

Across my five shares of SO, my net annual forward dividends would edge $0.40 higher due to such a declaration.

Expected Distribution Increase #7: Energy Transfer (ET)

I anticipate that Energy Transfer will announce a 0.8% bump in its quarterly distribution per unit to $0.3175.

My net annual forward distributions would rise by $0.86 across my 86 units of ET from such an announcement.

Expected Dividend Increase #8: International Business Machines (IBM)

My best guess is that International Business Machines will declare a 0.6% increase in its quarterly dividend per share to $1.67.

Across my six shares of IBM, my net annual forward dividends would grow by $0.24 due to such a declaration.

Concluding Thoughts:

My net annual forward dividends have increased by $14.184 from the five dividend raises and the one dividend cut that were announced during the month. This equates to investing $472.80 in capital at a 3% net dividend yield.

If the eight dividend boosts that I'm anticipating come to pass in April, my net annual forward dividends could be lifted by $8.32. That would be like investing $277.33 in capital at a 3% dividend yield.

Discussion:

How did you fare with dividend announcements in March 2024?

Did you receive any first-time raises as I did with TJX?

Thanks for your readership and please leave your comments below!

Brokerage Transfer/February 2024 Dividend Stock Purchases

As I'm writing this blog post, it's officially March. The temperature here in Central Wisconsin is a balmy 53 degrees Fahrenheit. Needless to say, that's quite warm for this time of year.

With that in mind, I just wanted to post a brief update on my dividend stock purchases/sales in February 2024.

As was the case in this series' previous post, I remained busy with improving liquidity in February as well. My emergency fund is a few months beyond my target at this point. However, before I allocate $6,500 to opening an IRA account, I want my liquidity to be built up a bit more. That is why there were no buys during the month.

This is also why my only transaction during February 2024 was a sale of 0.24 shares of Realty Income (O). This leads me into the primary focus of this post.

My Brokerage Account Is Now With Charles Schwab

The reason that I sold 0.24 shares of O last month was that I completed the transfer of my Robinhood account to Charles Schwab. I had a fractional share of O that was from its acquisition of Spirit Realty Capital (SRC) that closed in January. Any fractional shares of stock were sold off by Robinhood in the process of the account transfer. Since this was my only fractional share holding, that was my only sale in February.

Concluding Thoughts:

There was nothing personal in my decision to transfer from Robinhood to CS. I'll always be grateful for Robinhood in playing a role in the start of my investing journey. I just appreciated that CS is a much more established player than Robinhood in terms of years of business and assets under management.

As I alluded to in my March 2024 Dividend Stock Watch List, I look forward to again becoming a net buyer of equities later this month.

Discussion:

Have you ever switched brokers?

If so, what was the reasoning?

Thanks for reading and please feel free to comment below!

February 2024 Dividend Income

As I'm writing this blog post, it is Saturday, February 24. The temperature here in Central Wisconsin remains quite warm, with the high temperature expected to reach 34 degrees Fahrenheit today.

With that aside, I am going to highlight my net dividend income for February 2024.

In February 2024, I received $351.91 in net dividends. That works out to a 7.4% growth rate over the $327.57 in net dividends that I collected in November 2023.

My net dividends were 41.9% higher versus the $248.08 in net dividends that I received in February 2023.

Digging into detail, I collected $335.97 from 29 companies in my Robinhood account. My net dividends received within my Webull portfolio were $15.57 from three companies (inclusive of $0.06 of ADR fees for British American Tobacco). Finally, I collected $0.37 in net dividends from 15 companies in my M1 Finance account.

The net dividends that I received from November 2023 to February 2024 rose by $24.34, which was the result of the following activity in my portfolio:

My net dividends received from Medifast (MED) in my Robinhood account were $11.55 less, which was the result of my sale in December.

I collected $8.13 less from United Parcel Service (UPS) within my Robinhood and M1 Finance portfolios. That was due to the timing of the dividend payment.

I also received $3.66 less in net dividends from TJX Companies (TJX) in my Robinhood account, which was the result of the dividend payment timing.

I received an extra $0.22 in net distributions from Energy Transfer (ET) in my Robinhood and Webull portfolios, which was the result of the 0.8% raise in the quarterly distribution per unit to $0.315.

My net dividends collected from Main Street Capital (MAIN) grew by $0.15 within my Robinhood account. This was due to the 2.1% bump in its monthly dividend per share to $0.24.

I received an additional $3.93 in net dividends from Realty Income (O) in my Robinhood portfolio. That was the result of my higher share count associated with the shares I received related to the Spirit Realty Capital acquisition.

My net dividends collected from STAG Industrial (STAG) were $0.02 higher within my Robinhood account, which was due to the 0.7% increase in its monthly dividend per share to $0.1233.

I received an extra $0.36 in net dividends from Alliant Energy (LNT) in my Robinhood portfolio. That was the result of the 6.1% raise in the quarterly dividend per share to $0.48.

My net dividends collected from AbbVie (ABBV) were $0.98 higher within my Robinhood account, which was due to the 4.7% increase in the quarterly dividend per share to $1.55.

I received an additional $0.24 in net dividends from Abbott Laboratories (ABT) in my Robinhood portfolio. That was the result of the 7.8% raise in the quarterly dividend per share to $0.55.

My net dividends collected from ONEOK (OKE) were $1.19 higher within my Robinhood account, which was due to the 3.7% increase in the quarterly dividend per share to $0.99.

I received an extra $0.79 in net distributions from Enterprise Products Partners (EPD) in my Robinhood and Webull portfolios. That was the result of the 3% raise in the quarterly distribution per unit to $0.515.

My net distributions collected from MPLX LP (MPLX) were $27.20 higher within my Robinhood account, which was due to my purchases in November and December.

I received an additional $0.48 in net dividends from British American Tobacco (BTI) in my Robinhood portfolio.

My net dividends collected from Bristol-Myers Squibb (BMY) were $0.66 higher within my Robinhood account. That was the result of the 5.3% raise in the quarterly dividend per share to $0.60.

I received an extra $10.20 in net dividends from American Tower (AMT) in my Robinhood portfolio, which was due to the timing of the dividend payment and the 5.6% raise in the quarterly dividend per share to $1.70.

My net dividends collected from CVS Health (CVS) were $0.90 higher within my Robinhood account. That was the result of the 9.9% raise in the quarterly dividend per share to $0.665.

I received an additional $0.36 in net dividends from Mastercard (MA) in my Robinhood portfolio, which was due to the 15.8% boost in the quarterly dividend per share to $0.66.

Concluding Thoughts:

February 2024 was the first middle of the month quarter that my net dividend income surpassed $350. As I resume investing soon, reinvest dividends, and receive dividend raises, this should hopefully continue to grow over time.

Discussion:

How was your February 2024 for dividend income?

Did you receive any first-time distributions/dividends as I did with MPLX?

Thanks for your readership and please leave your comments below!