Tuesday, June 4, 2019

Expected Dividend Increases for June 2019

The Milwaukee Bucks had a disappointing end to their otherwise strong season after taking a 2-0 lead in the Eastern Conference Finals against the Raptors. Despite the heartbreaking ending, I don't believe this will be the last we see of Giannis and Co in the ECFs for quite a few years. Aside from that, yet another month is nearly over and that means it's time to examine the dividend increases we've received for May (so far) and look ahead to June.

May Dividend Increases:

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

As I predicted LOW would, they increased their quarterly dividend by 14.6% from $0.48/share to $0.55. This increased my annual forward dividends by $0.56 across my 2 shares.

Dividend Increase #2: Leggett & Platt Incorporated (LEG)

LEG did exactly as I predicted they would, increasing their quarterly dividend by 5.3% from $0.38/share to $0.40. This resulted in a $0.40 increase to my annual forward dividend income across my 5 shares.

Expected Dividend Increases:

Expected Dividend Increase #1: Realty Income (O)

I am expecting O to continue its trend of increasing its dividend by roughly 0.3% in the last month of each quarter, in addition to the 3-4% increases in January. Therefore, I'd expect a raise in the monthly dividend from $0.2260/share to $0.2265. That would increase my annual forward dividends by $0.024 across my 4 shares.

Expected Dividend Increase #2: WP Carey (WPC)

I am also expecting WPC to remain predictable with the $0.005/share quarterly increases. An increase in the quarterly dividend from $1.032/share to $1.035 seems to be a likely occurrence, which would increase my annual forward dividend income by $0.036 across my 3 shares.

Expected Dividend Increase #3: Philip Morris International (PM)

This one is a complete wildcard. Although PM increased its dividend last June, it has historically raised its dividend in September. Given the reputation PM has for increasing its dividend around mid-single digits, I'd assume a dividend raise from the current quarterly dividend of $1.14/share to $1.20 seems like a reasonable prediction. This would increase my annual forward dividends by $0.96 across my 4 shares.


While the month of May didn't come close to April in terms of dividend increases, I still received two strong increases that were exactly what I expected they would be. These two raises increased my annual forward dividends by $0.96, which is equivalent to an investment of $24.00 at a 4% dividend yield.

Overall, June could result in a $0.06 increase to my annual forward dividends or a possible $1.02 increase in my dividends if PM announces a second consecutive dividend increase in June. Overall, the $1.02 in expected dividend increases for the month of June would take $25.50 of fresh capital invested at a 4% dividend yield. The trifecta of dividend increases, reinvestment, and occasional fresh capital continues to work its magic, and I couldn't be more pleased.

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