Tuesday, March 22, 2022

Expected Dividend Increases for April 2022

As I'm writing this blog post, it's already late-March and the next few days are going to see highs reach into the low-50 degrees Fahrenheit range here in Central Wisconsin. It's so great to have daylight until 7:30 PM and next to no snow cover!

With that aside, I'm going to delve into the dividend announcements that were made in March 2022 and look ahead to the dividend raises that I'm anticipating for next month.

Actual Dividend Increases for March 2022

Dividend Increase #1: Digital Realty Trust (DLR)

The first dividend increase that I received in March was from Digital Realty Trust. DLR announced a 5.2% increase in its quarterly dividend per share from $1.16 to $1.22, which was in line with my expectations from a couple of posts back in this series. I'm very pleased with my position in DLR and am considering adding to it in the near future.

Across my three shares of DLR, my net annual forward dividends edged $0.72 higher due to the payout raise.

Dividend Increase #2: Realty Income (O)

The next dividend increase that I benefited from this month came from Realty Income. O declared a 0.2% raise in its monthly dividend per share from $0.2465 to $0.2470. Like DLR, O's payout increase met my expectations. O has steadily upped the dividend for 27 years straight, which makes it a Dividend Aristocrat. That's precisely why the stock is a core holding within my portfolio.

My net annual forward dividends inched $0.078 higher across my 13 shares thanks to O's dividend increase.

Dividend Increase #3: W.P. Carey (WPC)

The third payout raise that I received in March was from W.P. Carey. WPC announced a 0.2% increase in its quarterly dividend per share from $1.055 to $1.057. Like O, WPC raises its dividend every quarter. WPC's dividend announcement was just below my expectation of a 0.3% raise. But the business is doing well and I expect dividend growth to pick up in the near future.

Across my seven shares of WPC, my net annual forward dividends advanced $0.056 higher as a result of the dividend announcement.

Dividend Increase #4: American Tower (AMT)

The fourth dividend increase that I benefited from this month came from American Tower. AMT declared a 0.7% increase in its quarterly dividend per share from $1.39 to $1.40. This was below my prediction of a 2.9% bump to $1.43. But AMT is another wonderful stock that raises its dividend every quarter.

My net annual forward dividends edged $0.12 higher across my three shares of AMT due to the dividend announcement.

Dividend Increase #5: Williams-Sonoma (WSM)

The next payout hike that I received in March was from Williams-Sonoma. WSM announced a 9.9% increase in its quarterly dividend per share from $0.71 to $0.78. This was right on the money with my estimate. Since my initial investment in the stock four and a half years ago, WSM has nearly quadrupled its stock price and doubled its dividend. If only every investment was this successful!

Across my nine shares of WSM, my net annual forward dividends surged $2.52 higher as a result of the dividend announcement.

Dividend Increase #6: General Dynamics (GD)

The sixth dividend increase that I benefited from this month came from General Dynamics. GD declared a 5.9% raise in its quarterly dividend per share from $1.19 to $1.26. This came in a bit below my forecast of a 7.6% increase in the quarterly dividend to $1.28, but that's still a decent raise. 

My net annual forward dividends were boosted by $1.12 across my four shares of GD due to the dividend announcement.

Dividend Increase #7: Medifast (MED)

The next payout boost that I received in March was from Medifast. MED announced a 15.5% raise in its quarterly dividend per share from $1.42 to $1.64. This came in well above my projection of an 11.3% increase in the dividend to $1.58. MED is a stock I just purchased last December and added to in January, but the stock offers a great blend of yield, growth, and value. I wouldn't mind adding another share to my position around the current $186 share price.

Across my four shares of MED, my net annual forward dividends soared $3.52 as a result of the dividend announcement.

Expected Dividend Increases for April 2022

Expected Dividend Increase #1: Johnson & Johnson (JNJ)

The first dividend raise that I'm expecting to receive next month is from Johnson & Johnson. JNJ is set to extend its dividend growth streak to 60 years straight, which is the longest streak in all of healthcare as I noted in a recent Motley Fool article

Analysts anticipate that JNJ's non-GAAP diluted EPS will grow 7.4% to $10.53 in 2022. I believe this will prompt the stock to announce a 7.5% hike in its quarterly dividend per share from $1.06 to $1.14.

If my guess is proven correct, my net annual forward dividends would surge $1.60 higher across my five shares of JNJ.

Expected Dividend Increase #2: Southern Company (SO)

The next payout increase that I foresee for April will come from Southern Company. As SO works to bring its nuclear facilities Vogtle 3 and 4 online next year, I expect dividend growth will likely accelerate. 

But until then, I believe SO will declare a 3% raise in its quarterly dividend per share from $0.66 to $0.68.

My net annual forward dividends would advance $0.40 higher across my five shares of SO, if my assumption is right.

Expected Dividend Increase #3: International Business Machines (IBM)

The third dividend increase that I should receive next month is from International Business Machines. Since IBM is focused on deleveraging in the aftermath of its Red Hat acquisition and forging a path to revitalizing its growth, I'm not expecting more than a token raise.

That's why I think IBM will announce a 0.6% increase in its quarterly dividend per share from $1.64 to $1.65. 

Across my four shares of IBM, my net annual forward dividends would edge $0.16 higher, if my prediction is accurate.

Expected Dividend Increase #4: Exxon Mobil (XOM)

The next payout raise that I'm expecting for April will come from Exxon Mobil. Since XOM's EPS are expected to skyrocket to $8.05 in 2022 and hold around $7 next year, I think XOM will declare a 6.8% increase in its quarterly dividend per share from $0.88 to $0.94. This should give the company plenty of room to reinvest its profits and pay down debt.

My net annual forward dividends would rocket $2.64 higher across my 11 shares of XOM, if my guess is correct.

Expected Dividend Increase #5: Raytheon Technologies (RTX)

The fifth dividend increase that I should receive next month is from Raytheon Technologies. Analysts are projecting that RTX's EPS will surge 12.2% higher to $4.79 this year. That's why I believe RTX will announce a 9.8% raise in its quarterly dividend per share from $0.51 to $0.56 per share.

Across my seven shares of RTX, my net annual forward dividends would be boosted by $1.40, if my assumption is right.

Expected Dividend Increase #6: American Water Works (AWK)

The sixth dividend increase that I'm expecting for April will come from American Water Works. With analysts forecasting 11.8% growth in AWK's EPS to $4.45 in 2022, I think a 10% raise in the quarterly dividend per share from $0.6025 to $0.6625 is realistic.

My net annual forward dividends would increase by $0.96 across my four shares of AWK, if my prediction is accurate.

Concluding Thoughts:

My net annual forward dividends were positively impacted by $8.134 due to the dividend announcements during the month. At a 3.5% weighted average net dividend yield, it would require $232.40 in capital to match the income created by my portfolio's dividend increases in March 2022.

And if my predictions for April 2022 pan out, my net annual forward dividends will increase $7.16 from dividend announcements. The persistent growth in my net annual forward dividend income only motivates me even more to keep pushing and investing as much as I possibly can.

Discussion:

How was your March 2022 for dividend raises?

Did you receive any first-time dividend increases like I did with MED?

As always, I appreciate your readership and look forward to your comments in the section below!

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