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!