Tuesday, March 1, 2022

Expected Dividend Increases for March 2022

As I'm writing this blog post, the temperatures in the next few days are expected to reach into the low-40 degrees Fahrenheit here in Central Wisconsin.

With another month almost in the books, it's time to look back at the dividend announcements for February 2022. I'll look ahead at the dividend announcements that I'm anticipating for March 2022 as well.

Actual Dividend Increases for February 2022

Dividend Increase #1: Genuine Parts Company (GPC)

The first dividend increase that I benefited from in February was from Genuine Parts Company. GPC boosted its quarterly dividend per share 9.8% from $0.815 to $0.895, which was more than the raise to $0.88 that I was expecting. GPC is nearly seven full decades into its streak of raising its payout, yet the solid raises just keep coming. Overall, I'm very pleased with my position in GPC.

Across my six shares of GPC, my net annual forward dividends advanced $1.92 higher as a result of the dividend announcement.

Dividend Increase #2: Home Depot (HD)

The next dividend increase that I received during the month came from Home Depot, which also beat my prediction with its dividend increase. HD upped its payout to shareholders by 15.2% from a quarterly dividend of $1.65 to $1.90 per share. Similar to GPC, I'm very pleased with my stake in HD.

My net annual forward dividends surged $2.00 higher due to the dividend increase across my two shares of the stock.

Dividend Increase #3: Albemarle (ALB)

The third dividend increase that I benefited from in February was from Albemarle. ALB declared a 1.3% increase in its quarterly dividend from $0.39 to $0.395 per share, which was well short of my forecast of a boost to $0.55 per share. My thesis that significant growth in EPS would lead to a far higher payout this year was wrong. The good news is that ALB has crushed the market - - nearly tripling in the less than three years that I have owned the stock.

Across my five shares of ALB, my net annual forward dividends inched $0.10 higher as a result of the dividend announcement.

Dividend Increase #4: Prudential Financial (PRU)

Another dividend increase that I received during the month came from Prudential Financial. PRU announced a 4.3% increase in its quarterly dividend from $1.15 to $1.20 per share, which was just shy of my expectation of a bump to $1.21. PRU offers a nice blend of yield and dividend growth, so I'm perfectly fine with its raise.

My net annual forward dividends clocked in $2.00 higher due to the dividend announcement across my 10 shares of PRU.

Dividend Increase #5: L3Harris Technologies (LHX)

The fifth dividend increase that I benefited from in February was from L3Harris Technologies. LHX declared a 9.8% increase in its quarterly dividend per share from $1.02 to $1.12, which was in line with my prediction. LHX has been a solid dividend growth stock since I started purchasing shares in 2019.

Across my four shares of LHX, my net annual forward dividends were boosted by $1.60 as a result of the dividend announcement.

Dividend Increase #6: United Parcel Service (UPS)

Another dividend increase that I received during the month came from United Parcel Service. UPS announced a 49% hike in its quarterly dividend from $1.02 to $1.52 per share, which beat my forecast of a raise to $1.45 per share. My initial tranche of UPS shares purchased in March 2020 have more than doubled. Add in the tremendous dividend growth from UPS and I'm glad that I own the stock.

My net annual forward dividends skyrocketed $8.00 higher across my four shares of UPS at the time of the dividend announcement.

Dividend Increase #7: Cisco Systems (CSCO)

The seventh dividend increase that I benefited from in February was from Cisco Systems. CSCO declared a 2.7% increase in its quarterly dividend from $0.37 to $0.38 per share. Since CSCO also approved a $15 billion share repurchase authorization, I'm okay with the dividend increase coming in below my expectation of $0.39 per share.

Across my 11 shares of CSCO, my net annual forward dividends edged $0.44 higher as a result of the dividend announcement.

Dividend Increase #8: T. Rowe Price Group (TROW)

Another dividend increase that I received during the month came from T. Rowe Price Group. TROW announced an 11.1% increase in its quarterly dividend from $1.08 to $1.20 per share. This came in just above my prediction of a raise to $1.19 per share. TROW is yet another wonderful dividend growth stock that I'm glad to have in my portfolio.

My net annual forward dividends were boosted $2.40 higher due to my five shares of TROW at the time of the dividend announcement.

Dividend Increase #9: Allstate (ALL)

The ninth dividend increase that I benefited from in February was from Allstate. ALL declared a 4.9% increase in its quarterly dividend from $0.81 to $0.85 per share, which was below my forecast of a raise to $0.86 per share. But since the stock announced a 50% increase in its quarterly dividend last year (before I owned the stock), I'm fine with a lesser dividend growth rate this year.

Across my five shares of ALL, my net annual forward dividends increased by $0.80 as a result of the dividend announcement.

Dividend Increase #10: 3M (MMM)

Another dividend increase that I received during the month came from 3M. MMM announced a 0.7% increase in its quarterly dividend from $1.48 to $1.49 per share. This was below my prediction of a bump to $1.56 per share, but I'm fine with the company being cautious as it works to resolve the ongoing litigation against it.

My net annual forward dividends advanced $0.16 higher across my four shares of MMM due to the dividend announcement.

Dividend Increase #11: Medical Properties Trust (MPW)

The eleventh dividend increase that I benefited from in February was from Medical Properties Trust. MPW declared a 3.6% increase in its quarterly dividend from $0.28 to $0.29 per share. This was in line with my expectation.

Across my 25 shares of MPW, my net annual forward dividends were boosted by $1.00 as a result of the dividend announcement.

Dividend Increase #12: Coca-Cola (KO)

Another dividend increase that I received during the month came from Coca-Cola. KO announced a 4.8% increase in its quarterly dividend from $0.42 to $0.44 per share. KO's raise wasn't spectacular, but it was an acceleration from recent years and I'd expect that to continue for the foreseeable future. I'm happy to have recently opened a position in the stock.

My net annual forward dividends increased by $0.80 across my 10 shares of KO due to the dividend announcement.

Dividend Increase #13: PepsiCo (PEP)

The thirteenth dividend increase that I benefited from in February was from PepsiCo. PEP declared that it will be increasing its quarterly dividend payable in June by 7% from $1.075 to $1.15 per share. This is a solid dividend increase from PEP, which is exactly why I'm going to be looking to build my position out in the years ahead.

Across my three shares of PEP, my net annual forward dividends edged $0.90 higher as a result of the dividend announcement.

Dividend Increase #14: Shell (SHEL)

The final dividend increase that I received during the month came from Shell. SHEL announced a 4.2% increase in its quarterly dividend from $0.48 to $0.50 per share (dividend amount for its ADL listed shares).

My net annual forward dividends were bumped up by $0.72 across my nine shares of SHEL due to the dividend announcement.

Dividend Cut: AT&T (T)

AT&T declared a long-awaited cut in its dividend. The annualized dividend per share will fall from $2.08 to $1.11. However, factoring in the 0.24 shares of Warner Bros Discovery that shareholders will receive for every share of T that they own, the cut won't be as steep. Now that T will be back to being a pure-play telecom stock, I will likely sell my shares of Warner Bros Discovery to add to my position in T.

But as it stands right now, my net annual forward dividends dropped $20.37 across my 21 shares of T as a result of the announcement.

Dividend Freeze: Omnicom (OMC)

Omnicom announced that it was keeping its quarterly dividend steady at $0.70 per share. This came as a surprise to me considering that I was expecting a raise to $0.75 per share. But maybe Omnicom is simply being conservative in an uncertain environment with all that's currently going on. That's why I think the stock will eventually raise its quarterly dividend to $0.75 per share this year.

Yet To Be Announced: Digital Realty Trust (DLR)

Digital Realty Trust hasn't declared its new dividend (as of Feb. 28) that will be paid in the second quarter of this year. But I do suspect that the stock will be doing so sometime in the first few days of March. Thus, I'll include the amount of the dividend increase on the next post of this series.

Expected Dividend Increases for March 2022

Expected Dividend Increase #1: Realty Income (O)

The first dividend increase that I'm anticipating in March is from Realty Income. True to form, I believe that O will announce a 0.2% raise in its monthly dividend from $0.2465 to $0.2470 per share.

Across my 13 shares of O, my net annual forward dividends would inch $0.078 higher, if my prediction is proven to be correct.

Expected Dividend Increase #2: W.P. Carey (WPC)

The next dividend increase that I'm expecting next month will be from W.P. Carey. I anticipate that WPC will declare a 0.3% increase in its quarterly dividend from $1.055 to $1.058 per share. 

My net annual forward dividends would increase by $0.084 across my seven shares of WPC, if my forecast is right.

Expected Dividend Increase #3: American Tower (AMT)

The third dividend increase that I'm predicting in March is from American Tower. My guess is that AMT will announce a 2.9% increase in its quarterly dividend from $1.39 to $1.43 per share. While this sounds low, it's important to remember that AMT raises its payout to shareholders each quarter.

Across my three shares of AMT, my net annual forward dividends would be $0.48 higher, if my estimate is accurate.

Expected Dividend Increase #4: Williams-Sonoma (WSM)

The next dividend increase that I'm anticipating next month will be from Williams-Sonoma. I believe that WSM will declare a 9.9% increase in its quarterly dividend from $0.71 to $0.78 per share because it has plenty of room to grow.

My net annual forward dividends would be boosted by $2.52 across my nine shares of WSM, if my prediction is correct.

Expected Dividend Increase #5: General Dynamics (GD)

The fifth dividend increase that I'm expecting in March is from General Dynamics. I think that GD will announce a 7.6% increase in its quarterly dividend from $1.19 to $1.28 per share. That's because the stock has the flexibility to grow its dividend and 5% earnings growth is forecasted for this year.

Across my four shares of GD, my net annual forward dividends would increase by $1.44, if my forecast is right.

Expected Dividend Increase #6: Medifast (MED)

The last dividend increase that I'm predicting next month will be from Medifast. Since analysts are anticipating 11.2% earnings growth this year, I believe MED will declare an 11.3% increase in its quarterly dividend from $1.42 to $1.58 per share.

My net annual forward dividends would be boosted by $2.56 across my four shares of MED, if my estimate is accurate.

Concluding Thoughts:

Even with the dividend cut from T and OMC's dividend freeze, my net annual forward dividends moved $2.47 higher during the month of February. At a weighted average yield of 3.5%, this would require $70.57 in fresh capital to replicate.

Looking ahead to March, my net annual forward dividends would increase by $7.162, if each of my predictions are proven to be correct. This would take $204.63 of my own capital to match, assuming a 3.5% weighted average dividend yield.

Discussion:

How was your February 2022 for dividend announcements?

Are you expecting any first-time payout increases in your portfolio like I am with MED?

Thanks for your readership and I welcome your comments in the section below!

4 comments:

  1. February was an awesome month for dividend increases. We received 12 raises from the holdings in our main account, but unfortunately that cut from T was a big drag. I'm still patiently, and soon to be impatiently, waiting for the DLR announcement which hopefully comes soon.

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  2. Thanks for stopping by and congrats on the 12 dividend increases last month! The cut from T prevented me from having what would have otherwise been a record month for dollar amount of dividend raises. But at least I still set a record for quantity of raises.

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  3. That's a nice long list of dividend raises. Happy to hold some of those names. I'm thinking I might do the same as you regarding T shares after spin off.

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  4. Keith,

    Thanks for stopping by and commenting. It will be nice to offset some of T's dividend cut by selling WBD.

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