Tuesday, June 18, 2024

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.

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 $9.674 for the month. This would be like investing $322.47 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!

Tuesday, June 11, 2024

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!

Tuesday, June 4, 2024

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!

Tuesday, May 28, 2024

May 2024 Dividend Stock Purchases

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!