As I'm writing this blog post, the temperature here in Central Wisconsin is 90 degrees Fahrenheit and it feels like it is 94. The good news, however, is that the high temperatures will dip down into the high-70 degrees Fahrenheit to low-80 degrees Fahrenheit range starting on Sunday.
With that aside, there is barely a week left in July. That means it's time to check out the dividend increases in my portfolio for the month and look ahead to what I'm expecting for August.
Actual Dividend Increases for July 2022
Dividend Increase #1: Enterprise Products Partners (EPD)
Enterprise Products Partners announced a solid 2.2% increase in its quarterly distribution per unit to $0.475. This is exactly what you'd come to expect from a high-quality midstream company. And it doesn't hurt that the stock offers a 7%-plus distribution yield to boot.
Across the 36 units of EPD that I own, this boosted my net annual forward distributions by $1.44 due to the distribution announcement.
Dividend Increase #2: Cummins (CMI)
Cummins declared an 8.3% increase in its quarterly dividend per share to $1.57. This came in just above my projection of a 7.6% raise in the quarterly dividend per share to $1.56. This was the first boost in my net annual forward dividends from CMI since I purchased the stock. And I believe it will be the first of many more.
My net annual forward dividends surged $2.40 higher across my five shares of CMI as a result of the payout raise.
Dividend Increase #3: Clorox (CLX)
Clorox announced a 1.7% bump in its quarterly dividend per share to $1.18. This was a bit above the $1.17 quarterly dividend per share announcement that I was forecasting. CLX's first dividend increase for me was light. But once the business has rebounded over the next few years, I expect dividend growth to meaningfully accelerate.
Across my two shares of CLX, my net annual forward dividends inched $0.16 higher due to the dividend raise.
Dividend Increase #4: Duke Energy (DUK)
Duke Energy declared a 2% increase in its quarterly dividend per share to $1.005. This was well below my prediction of a 5.1% raise in the quarterly dividend per share. DUK's raise was disappointing, but there's nothing wrong with being conservative. The company always has the option of making up for its low raise in future years.
My net annual forward dividends edged upward by $0.48 across my six shares of DUK as a result of the dividend lift.
Dividend Increase #5: National Retail Properties (NNN)
National Retail Properties announced a 3.8% raise in its quarterly dividend per share to $0.55. This was precisely what I was projecting, which is a great raise for a high-yielding REIT.
Across my 12 shares of NNN, my net annual forward dividends increased by $0.96 due to the dividend announcement.
Dividend Increase #6: J.M. Smucker (SJM)
J.M. Smucker declared a 3% bump in its quarterly dividend per share to $1.02. This came in slightly lower than the 5.1% raise that I was expecting. But the stock's 10% raise in the prior year compensates for this in my opinion.
My net annual forward dividends rose by $0.36 across my three shares of SJM as a result of the payout raise.
Dividend Increase #7: Wells Fargo (WFC)
Wells Fargo boosted its quarterly dividend per share by 20% to $0.30.
Across my eight shares of WFC, my net annual forward dividends soared $1.60 higher due to the dividend announcement.
Dividend Increase #8: Energy Transfer (ET)
Energy Transfer announced a 15% increase in its quarterly distribution per unit to $0.23. The company is continuing to make significant progress in restoring its quarterly distribution per unit to $0.305.
My net annual forward distributions were boosted by $7.20 across my 60 units as a result of the payout hike.
Dividend Increase #9: Hershey
Hershey announced a 15% raise in its quarterly dividend per share to $1.036. This was well above the 9.2% raise that I was expecting.
Across my three shares, this increased my net annual forward dividends by $1.62.
Expected Dividend Increases for August 2022
Expected Dividend Increase #1: Altria Group (MO)
The first dividend raise that I'm expecting in August is from Altria Group. With mid-single-digit annual earnings growth set to continue over the next several years for the stock, I believe MO will announce a 4.4% raise in its quarterly dividend per share to $0.94.
If right, my net annual forward dividends would spike $3.84 higher across my 24 shares of MO as a result of the payout hike.
Expected Dividend Increase #2: BP plc (BP)
The other payout increase that I'm anticipating next month will be from BP. I believe that the company will announce a 3.8% raise in its quarterly dividend per share to $0.335.
Across my 11 shares, my net annual forward dividends would be boosted by $0.546 by such a dividend announcement.
Expected Dividend Increase #3: Essential Utilities (WTRG)
I'm still awaiting a dividend raise from Essential Utilities. Since WTRG will be reporting its second quarter earnings on the first Wednesday of August, I believe that will be the date that the company actually announces its raise. But I am maintaining my projection of a 7.2% hike in the quarterly dividend per share to $0.2875 in the final week of the month.
My net annual forward dividends would be bumped up by $0.772 across my 10 shares of WTRG if my prediction comes to fruition.
I received $16.22 in dividend increases from nine of my holdings for the month. This would be the equivalent of investing $463.43 of fresh capital at a net dividend yield of 3.5%.
Dividend raises will slow down for my portfolio in August. But I believe that MO will more than make up for it.
How was your July 2022 for dividend raises?
Did you get any first-time payout hikes like I did with CMI, CLX, DUK, and HSY (as well as the increase that I'm still expecting from WTRG)?
Thanks for reading and I look forward to your comments below!
Hoping to see solid raise out of MO since it's my biggest dividend payer. I would expect something closer to 4% like you're forecasting but if we get a 6% raise that'd push me up to $700 in forward dividends from them which would be awesome. We also own BP and a raise from them would certainly be nice to see. The only other raise we expect is from ITW and I'm hoping to see another bump in the 6-8% range.ReplyDelete
Thanks for the comment. I'm expecting a more modest raise from MO. But I'd definitely love to see a 6% raise. They do have a bit of flexibility with the payout ratio, so 6% may not be so far fetched.ReplyDelete