Tuesday, May 21, 2024

Expected Dividend Increases For June 2024

As I'm writing this blog post on Monday, May 13th, the temperature is currently expected to reach a high of 75 degrees Fahrenheit here in Central Wisconsin. Other than wildfires in Canada currently impacting air quality, the weather is perfect today.

Now that all but two of my anticipated dividend increases for May have already been announced, I will be going over those dividend increases and looking ahead to the ones on tap for next month.

Actual Dividend Increases For May 2024

Dividend Increase #1: American Water Works (AWK)

As I noted in the previous post of this series, American Water Works announced an 8.1% raise in its quarterly dividend per share to $0.765. This was in line with my prediction.

Across my four shares of AWK, my net annual forward dividend rose by $0.92 as a result of this dividend announcement.

Dividend Increase #2: Main Street Capital (MAIN)

Main Street Capital declared a 2.1% increase in its monthly dividend per share to $0.245. That was also what I anticipated.

My net annual forward dividends surged $1.80 across my 30 shares of MAIN due to this dividend declaration.

Dividend Increase #3: RTX Corp (RTX)

RTX Corp announced a 6.8% raise in its quarterly dividend per share to $0.63. This was also what I forecasted.

Across my 12 shares of RTX, my net annual forward dividends were boosted by $1.80 as a result of this dividend announcement.

Dividend Increase #4: Simon Property Group (SPG)

Simon Property Group (SPG) declared a 2.6% increase in its quarterly dividend per share to $2. That was also on par with my expectations.

My net annual forward dividends rose by $1.80 across my nine shares of SPG due to this dividend declaration.

Dividend Increase #5: Realty Income (O)

Realty Income announced a 2.1% raise in its monthly dividend per share to $0.2625. Across my 39 shares of O, my net annual forward dividends grew by $2.574 from this announcement.

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

Lowe's hasn't yet announced its dividend hike, but I would anticipate this will happen with the release of its fiscal first quarter earnings on May 21. I continue to believe that LOW will up the quarterly dividend per share by 4.5% to $1.15.

Across my 10 shares of LOW, my net annual forward dividends would grow by $2 from such an announcement.

Pending Dividend Increase #2: Medtronic (MDT)

Medtronic also hasn't yet boosted its dividend, but I'd expect this to occur on May 23, with the release of its fiscal fourth quarter earnings. My expectation remains that MDT will up the quarterly dividend per share by 1.4% to $0.70.

My net annual forward dividends would increase by $0.52 across my 13 shares of MDT due to such a declaration.

Expected Dividend Increases For June 2024

Expected Dividend Increase #1: FedEx (FDX)

The first dividend boost that I'm expecting for June will come from FedEx. My best guess is that FDX will announce a 9.6% increase in its quarterly dividend per share to $1.26.

Across my four shares of FDX, my net annual forward dividends would rise by $1.76 from such an announcement.

Expected Dividend Increase #2: General Mills (GIS)

The next payout raise that I'm anticipating for next month will be from General Mills. I believe that GIS will declare a 9.3% boost in its quarterly dividend per share to $0.59.

My net annual forward dividends would increase by $0.80 across my four shares of GIS due to such a declaration.

Expected Dividend Increase #3: Realty Income (O)

The third dividend bump that I'm predicting for June will come from Realty Income. I anticipate that O will announce a 0.2% raise in its monthly dividend per share to $0.2630.

Across my 39 shares of O, my net annual forward dividends would grow by $0.234 from such an announcement.

Expected Dividend Increase #4: UnitedHealth Group (UNH)

The next dividend boost that I'm expecting for June will be from UnitedHealth Group. My best guess is that UNH will declare a 13.3% hike in its quarterly dividend per share to $2.13.

My net annual forward dividends would rise by $5 across my five shares of UNH due to such a declaration.

Concluding Thoughts:

The five dividend raises that I have received thus far in May have boosted my net annual forward dividends by $8.894. This would be equivalent to investing $296.47 at a 3% net dividend yield. I will update this as the other two raises likely are announced next week.

If dividend announcements work out as I expect, my net annual forward dividends would rise by $7.794. That would be like investing $259.80 at a 3% weighted-average dividend yield.

Discussion:

How was your month for dividend increases?

Did you receive any first-time dividend boosts in May 2024?

I appreciate your readership and welcome your comments below!

Tuesday, May 14, 2024

June 2024 Dividend Stock Watch List

As I'm writing this blog post, it is Monday, May 6. The weather is going to be perfect today here in Central Wisconsin, with clear skies and the temperature expected to hit a high of 75 degrees Fahrenheit. 

The first week of the month is almost over. So, now would be a good time to take a look at three dividend stocks that are top of mind for purchases next month.

Dividend Stock #1: American Water Works (AWK)

First up is the water utility, American Water Works (AWK). Interested readers can check out my Seeking Alpha article from earlier this month to learn why I would like to up my weighting in the stock.

Basically, AWK is a steady grower and the most recent quarterly results reinforce my belief that this won't be ending anytime soon. The 8.1% dividend hike announced just days ago is supported by the low payout ratio. Lastly, I believe shares could be worth approximately $141 each, which would be a decent discount from the current $130 share price.

Dividend Stock #2: VICI Properties (VICI)

The next dividend stock on my watch list is VICI Properties (VICI). For a deeper dive into why I like VICI, readers can peruse my Seeking Alpha article from last month.

Simply put, VICI's near-6% dividend yield can be sustained by FFO per share generation. Consistent FFO per share growth can also power future dividend growth. Finally, shares could be worth $35 apiece. That would be a moderate discount versus the current $29 share price.

Dividend Stock #3: WEC Energy Group (WEC)

The third stock on my watch list is WEC Energy Group (WEC). Readers can take a look at my Seeking Alpha article published today for my updated investment thesis.

Basically, I think WEC's latest quarterly results back up my argument that it is just a few years away from becoming a Dividend Aristocrat. The company's earnings are consistently growing. For a utility, the payout is also conservative. In closing, WEC could be worth $96 a share - - a double-digit percentage discount from the current $82 share price.

Concluding Thoughts:

There we have it. The names and the month may change, but the story stays the same. Three more businesses that I believe are high-quality and undervalued. Thus, why I'm likely going to be adding to each next month.

Discussion:

Are any of AWK, VICI, or WEC on your watch list for the foreseeable future?

If not, what stocks are you currently watching?

Thanks for your readership. I look forward to your comments below!

Tuesday, May 7, 2024

April 2024 Dividend Income

As I'm writing this blog post, it is currently Wednesday, May 1. The temperature is expected to reach a high of 68 degrees Fahrenheit here in Central Wisconsin. That's why aside from my usual treadmill and weights routine, I plan on getting outside for at least a half an hour to an hour later today.

With that aside, a new month means now is a great time to reflect on my portfolio's net dividend income for April 2024. Without further ado, I'll jump into it!

A Decent Month Considering Recent Portfolio Activity

During April 2024, I received $246.69 in net dividends. This was 7.2% less than the $265.76 in net dividends that I collected in January 2024. However, when adjusting for some special items, my net dividends would have grown by 6.4% in April over that month.

Via my forced sale of Spirit Realty (SRC) to Realty Income (O) due to the latter's acquisition, this was a $7.06 hit to my net dividends. My sale of Leggett & Platt (LEG) in January was a $14.72 drag on my net dividends. The timing of Digital Realty Trust's (DLR) dividend also weighed on my net dividends to the tune of $12.20.

Against the $222.78 in net dividends that I received in April 2023, this was a 10.7% year-over-year growth rate (before accounting for the above items).

In my Charles Schwab account, I collected $236.23 in net dividends from 27 companies. The aforementioned headwinds from SRC, LEG, and DLR were partially offset by dividend raises.

My net dividends received from four companies in my Webull account were unchanged at $10.24.

Concluding with my M1 Finance account, I collected $0.22 in net dividends from nine companies. This was also the same as January 2024.

Concluding Thoughts:

My net dividends dipped below $250 in April. But moving forward, they should climb back above that in July and beyond. Besides dividend increases, this is because of my dividend stock purchases made in March 2024.

Discussion:

How was your dividend income last month?

Did you collect any first-time dividends in April 2024?

As always, thanks for reading and please feel free to comment below!

Tuesday, April 30, 2024

April 2024 Dividend Stock Purchases

As I'm writing this blog post on Friday, April 26th, it is currently 60 degrees Fahrenheit and raining. After showers earlier in the week as well, this should help to green up that grass!

Now that April is nearly concluded, I will turn my attention to the dividend stock purchases that I executed during the month.

Dividend Stock Purchase #1: PepsiCo (PEP)

In alphabetical order, my first dividend stock purchase this month was an additional seven shares of PepsiCo (PEP) at an average cost of $168.47 a share. This was a $38.22 boost to my net annual forward dividends, which equates to a 3.24% net dividend yield.

As I noted in my April 2024 Dividend Stock Watch List blog post, interested readers can check out last September's Seeking Alpha article for my investment thesis.

Dividend Stock Purchase #2: Starbucks (SBUX)

My next dividend stock purchase for the month was 13 shares of Starbucks (SBUX) at an average price per share of $85.98. This purchase lifted my net annual forward dividends by $29.64, which works out to a 2.65% net yield.

Readers who want to learn more about my investment thesis for SBUX can check out the April 2024 Dividend Stock Watch List blog post that I linked to earlier.

Dividend Stock Purchase #3: UnitedHealth Group (UNH)

My final dividend stock purchase during April was two shares of UnitedHealth Group (UNH) at an average cost of $451.14 a share. This transaction increased my net annual forward dividends by $15.04, which is equivalent to a 1.67% net dividend yield.

For my investment thesis, readers can peruse my February Seeking Alpha article.

Concluding Thoughts:

I put $3,199.31 of capital to work in April. Against the $82.90 in net annual forward dividends, that is a 2.59% weighted average net dividend yield.

Combined with the $19.88 in dividend increases/initiated dividends for the month, my net annual forward dividends climbed from around $4,480 to approximately $4,580 to conclude April.

Discussion:

How was your capital deployment for April 2024?

Did you open any new positions?

I appreciate your readership and welcome your comments below!