It has been a long, long time since we have published one of these articles on our website. For those of you who are not familiar, for the first year and a half of our website, every month we published a listing of Dividend Aristocrats that we are expecting to announce a dividend increase in the coming month. Why did we bring back the article this month? Well, because there are some epic names (both Aristocrats and non-Aristocrats) on April’s listing. Let’s dive in!
Company #1 – Procter & Gamble (PG) – The two of us are eagerly awaiting this one, especially considering the two of us added to our stakes in PG in January (Lanny added 10.12 shares and Bert added 20 shares). The impact will be real and can potentially add a nice chunk of change to our forward dividend income totals. But that is a big if, especially considering PG’s recent track record. PG’s three and five-year average dividend growth rates of 3.66% and 5.01%, respectively, are less than stellar. But the company has been implementing a cost cutting strategy and re-shifting their attention to core products and brands. We will see if this new strategy will help jolt their dividend growth rate!
Company #2 – Johnson and Johnson (JNJ) – While we didn’t purchase additional shares of JNJ like we did PG, JNJ still remains one of our favorite companies as it is one of our Top 5 Foundation Stocks for a dividend portfolio. Bottom line, we love this company! In terms of dividend increases, it doesn’t get any more consistent than JNJ. The company’s 3 and 5 year dividend growth rates are 6.62% and 7.02%, respectively. Reading JNJ’s annual report, it is evident that the management team values providing shareholders with a solid return while re-investing in the company’s operations to sustain the growing cash flow. There is no reason to expect JNJ to deviate from their recent history of high-single digit dividend growth rate!
Company #3 – PPG Industries (PPG) – Neither of us own PPG, and the company’s current yield is a little too low to crack Bert’s watch list. But man has the company been on a tear so far in 2017. Similar to JNJ, PPG’s dividend growth rates are in the high single digits, as the company has a 3 and 5 year dividend growth rate of 9.47% and 7.06%. It would be a nice treat for the shareholders if they could crack a double-digit dividend growth rate this year…right??
Company #4 – International Business Machine (IBM) – The first non-Dividend Aristocrat on our list. Man, there was a time the two of us were scooping up shares of IBM left and right and building pretty decently large positions in our portfolio! One of the major selling points was the company’s willingness to return capital to shareholders either via share buybacks or dividend increases. And man has IBM delivered in terms of dividend increases, as the company’s 3 and 5 year dividend rates are 13.89% and 13.33%. Boom! Unfortunately, IBM typically doesn’t announce their dividend until the end of the month, so we are going to be waiting a while until we get the exciting news!
Company #5 – Costco (COST) – Another non-Dividend Aristocrat here. COST has increased their dividend for 8 consecutive years and has posted a 3 and 5 year average dividend growth rate of 13.2% and 13.4% (when you remove the impact of special dividends). Yet another low dividend yield, high dividend growth rate stock on this list. Hopefully they can keep up that growth rate!
There we have it, five different companies that we are expecting to deliver some great news to shareholders in April. To us this is what it is all about and we are going to be waiting at the edge of our seats for each announcement. The power of dividend re-investment is real and with each dividend increase, regardless of the size, puts us that much closer to financial freedom and early retirement. We always say it here, but man, EVERY SINGLE DOLLAR COUNTS! So now, it is time to sit and wait and see if these companies deliver!
-The Dividend Diplomats
Love my Dividend increases!! 😀
Heck yeah! You and all of us. Gives me something to look forward to each month 🙂
Bert
It’s not really a dividend darling, but AAPL should also announce an increase in April for the May payment!
A company showing solid growth and double digit dividend growth potential, I would call it a dividend darling 🙂 never underestimate low yielding stocks!
cheers,
Mike
Boom – Can’t believe I forgot to include Apple on this list. Thanks for reminding me. I’m very excited/intrigued to see what APPL does here considering their 3 and 5 year average DGR of 9.37% and 24%. They always have some big/crazy announcement up their sleeves, so let’s see if they deliver here
Bert
I’m pretty excited to see what Apple has up their sleeve as well. I figure it’ll be another ~10% bump.
Love dividend increases
Amen!
I Don’t have a position in any of those, but ibm’s dividend increases are crazy! didnt know that. thanks
They kind of catch you off guard, right? The dividend increases in the large, tech giants continue to blow my mind. I guess I forgot just how large their cash accounts are, which is never a bad thing!
Bert
Good to see this article back! Hoping for a 5 or 6 cent raise from JNJ.
NWFL caught my eye today, up 5.5% on ten times the normal volume. I wonder if something’s going on there?
NWFL continues to blow my mind! I am up 54% on my position, and the crazier thing is that I didn’t buy it that long ago. I am watching this story with amazement and every time I see an increase like that I expect to read about how they were acquired. So you know what? For now, I’m going to enjoy the ride! Did you buy any shares before the jump?
Bert
It’s great to get dividend raises, and it’s even better when they exceed your expectations. JNJ is our only long term holding on the list above, but I did buy my first dividend stock in months this week. The space has been so richly valued that we’ve just been building up cash. Anywho, I hope you guys get your raises. Have a great weekend!
-Bryan
Bryan,
Congrats on the purchase! Who was the lucky company? I agree, valuations are at crazy levels at the moment. But every once and a while, you can find a diamond in the rough. The key is capitalizing during that short window.
Have a great weekend as well!
Bert
April is going to be a great month for dividend increases for my portfolio as well. In addition to PG, JNJ and IBM there’s at least 3 others that should announce raises based on last years schedule and possibly a couple more. You’ve got to love seeing multiple pay raises coming your way each month.
Yes it is JC! How pumped are you? You’ll have to keep track and let us know how much your dividend income increases based solely on announced dividend increases. I wonder if it will outpace the growth in wages from our employers haha
Bert
Sweet. JNJ and IBM are two of my larger positions. Any dividend increases there will be great!
Scott
Dang, I don’t own any of these companies ;-(.
There are plenty of other fish in the sea!
PG and Apple are the two from my portfolio which should increase dividends this month, although PG had a very tiny increase last year. Hoping it is a better increase this year 🙂
Chevron, used to increase dividends in april too, but that was before 2015 and before things changed drastically for the oil majors.
I’m with you, expecting some big and exciting things from PG this year. Keeping my fingers crossed and am pumped to see the results of their restructuring and focus on the key brands. CVX was the one that fell off my list hear. Although they finally did increase their dividend again!
Bert
Would love to add more position to these great companies, but they always command premium prices. Still waiting for a big correction that may never come. I might just pull the trigger and add more JNJ, or finally start a PG position.
Micro,
Some of the companies are not trading at the premium levels that are believed. We may not be shopping in the clearance section of the market here, but JNJ isn’t overpriced in the same way that companies like Clorox are. I’m going to continue looking for deals elsewhere though, because there are companies like TGT that are trading at a steep discount compared to the market.
Thanks for the comment!
Bert
Awesome List. I love JNJ and PG. Ill have to do some research into the PPG company also. I love finding some good quality dividend stocks. Thanks for the great article.
Thanks Diligent. Isn’t it crazy that so many great companies increase their dividend in April! What are the odds?
Bert
Lots of good companies on there. I think all of them should deliver since they have plenty of runway in their payout ratios!
TITM,
Isn’t that one heck of a list?? I hope you are right, because I am expecting some exciting things from PG this month!
Bert
DD,
Increases are the Bees’ Knees. Long JNJ.
-Gremlin
Hey DD,
I love to see increasing cash-flow. Glad to see one my holding in the expected list (PG). I am expecting few other Canadian stocks in my portfolio will hike their payment sooner 😀 .
What else we want?
DD,
Before I read your article, I purchased new positions in JNJ and PG. I already had shares in AAPL. I’m so looking forward to the increases.
I’m a huge fan of COST and have been contemplating jumping in. I have a little bit of cash on the sideline as I’m trying to figure out what makes most sense right now. Hopefully I can gain a better perspective on the market as it’s making me a little leery right now with two potential wars on the horizon.