Expected Dividend Increases in August 2017

What dividend investor doesn’t love receiving a dividend increase from one of their holdings?  No hands are raised….exactly what I expected.   Lanny and I are constantly monitoring our portfolios to make sure we measure the impact of a dividend increase the day the company makes their announcement.  We love instant results!  So each month, we take summarize a listing of Dividend Aristocrats (and a handful of non-Aristocrats) that are set to increase their dividend in the coming month to share our excitement with the community.   Now it is time to dive in and see which companies are expected to increase their dividend in August!

Dividend Increases in July 2017

Before looking forward to the increases that are expected in August, I always like to review the increases that we discussed in the previous month’s article.  I highlighted three companies in my July summary and I actually do not own shares in any of the companies.  So the results did not impact my forward dividend income.  Let’s see the results!

  • Stanley Black & Decker (SWK) –  SWK announced a $.05/share increase in their quarterly dividend, from $.58/share to $.63/share.   This was an 8.6% increase, which was greater than their previous five-year average growth rate of 7.3% (as cited in my last article).   Gotta love when a company exceeds their recent growth rate! 
  • Walgreens Boots Alliance Inc (WBA) –  Another mid single digit increase was announced.  WBA increased their quarterly dividend by $.025/share.  A solid increase.  This has me excited for CVS’s dividend increase announcement in December.
  • J.M. Smuckers (SJM) –  This one was interesting.  Last month, we cited that SJM has a five-year average dividend growth rate of 9.3%.   Well, their dividend increase in July was only 4%…well below the average!  I’m still a homer and love this consumer company from the Buckeye State, but I’m a little shocked that the dividend increase was a low as it was.
  • Knider Morgan (KMI) – Okay, this one is a bonus and there is not a guaranteed dividend increase.  But I’m pretty sure that all dividend growth investors were excited when Kinder Morgan announced that the company anticipates a 60% dividend increase in 2018 and a 25% annual dividend growth rate through 2020.   While we can understand that some people could be cautiously optimistic given the dividend cut from a few years ago (myself included).  Management’s discussion in the earnings release about the importance of maintaining a strong balance sheet and keeping leverage to their tolerable thresholds was very re-assuring.  But I’ll still be keeping a close eye on the company’s debt levels over the next few years.

Expected Dividend Increases in August 2017

A nice surprise there at the end, right?  July wasn’t supposed to be an exciting month in terms of dividend increases since I originally only anticipated three increases.  However, KMI really stepped up to the plate and delivered some exciting news.   Now that July’s increases are behind us, it is time to look ahead to August and see which companies are expected to announce an increases here in the heart of summer.   Let’s go!

  • Dover Corp. (DOV) –  Watch out, because this dividend increase is going to come quickly  since DOV typically announces their dividend in the early parts of August.   DOV is a classic Dividend Aristocrat with a very long streak of increasing their dividend.  Over the last three and five years, the company has maintained an average dividend growth rate of 5.48$ and 6.94%, respectively.  I’m excited to see the upcoming announcement and see what the company has in store for their shareholders.
  • Illinois Tool Works (ITW) –  Another Dividend Aristocrat and another company that will announce their increase early on in August.  ITW is a  low dividend yielding stock with a double-digit average dividend growth rate over the last five years.
  • Nordson Corp (NDSN) –  Much like ITW, NDSN is a Dividend Aristocrat with a low dividend yield and a high dividend growth rate.  NDSN has a dividend yield that hovers around 1% and has posted an impressive 16.7% fiver year average dividend growth rate.  Strong results indeed!
  • Kellogg Company (K) – It wouldn’t be a listing of mine if I didn’t include one consumer staple stock in it, right?   Kellogg is expected to announce their dividend increase in August.  The recent results have not be stellar, however.  K’s five-year average dividend growth rate is slightly below 4%.   Hopefully they can reverse the trend in the coming year.

Summary

It is always fun reviewing great companies that are expected to increase their dividend increases in the coming month.   We are so focused on investing in dividend income stocks here, that we celebrate every increase because it helps bring us that much closer to retiring early.  While the impact on our forward dividend income may be a few dollars or even a handful of change, every single dollar helps us get the dividend snowball rolling.  Then, the good old fashioned power of dividend growth investing steps in.   I know I only listed four companies that are expected to increase their dividend in August; however, there are so many others out there that are going to provide a boost!  Congrats in advance everyone.

Do you own any of the companies in this listing?  What companies increased your dividend income in July that I did not include here?  Are you considering investing in any of the companies listed in this article?  If not, what companies are on your August watch list?

Bert

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19 thoughts on “Expected Dividend Increases in August 2017

    • Thanks Stockles! These weren’t all of my increases; rather, I summarized a list of some notable companies that may be found in many of our dividend portfolios! But it is always a good idea to keep track of your dividend increases recorded during the year.

      Bert

  1. Unfortunately, I don’t own any of those companies that you mentioned. Neither are they on my watch list. But, the idea that dividends increase over time is one of the beautiful thing about investing in dividend growth stocks and why I continue to pursue this strategy. Thanks for the write up Bert.

    • PCI,

      That’s the nice thing. There are so many great dividend stocks out there, so it is always nice to learn more about them and see if there are any new gems out there. Heck, that’s why I love putting this list together this afternoon – it provides me great intel for future purchases.

      Take care!

      Bert

  2. Looking forward to the expected increase from ITW next month, as that is the one I have in my portfolio. In fact, I think that’s the only one I’m expecting…August seems to be one of the slower months for dividend increases…. but one is better than none!

  3. Dividend increases are one of the greatest joys of dividend investing. For the first time, I when back to the beginning of the year to calculate my monthly dividend income. I had not invested for the first 6 months of the year until July, yet I could visibly see growth just from dividend increases. It was an eye opener to get a visual of it all adding up each quarter without me do a thing. Great post!

    • Yes – Nothing makes me happier than receiving a dividend increase, right? Your example is a textbook example of why dividend investing is amazing. Your income stream still grows, even with minimal activity. Heck, I have been witnessing this point and case recently since I have invested for over a month and a half. It gets the snowball rolling, and once it gets rolling, the power of compounding really starts to kick in.

      Bert

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