Expected Dividend Increases in April 2018

After taking a month off, it is time to for the next installment of our monthly article summarizing every dividend growth investor’s favorite topic…DIVIDEND INCREASES!  For those of you that are new followers, each month we try to summarize as many companies that are expected to announce a dividend increase in the coming month as we can.  Why?  Because it gives us something to look forward to and there is a chance it may impact someone’s investment decision! This is going to be an exciting month because there are some big names in the investing community that are set to announce an increases.  Now, it is time to roll up our sleeves and see which companies are expected to announce a dividend increase in April 2018.

Actual Dividend Increases – February and March

Typically, in this section of the post, I will summarize the results of all of the dividend increases that I summarized in the previous month.  However, since I did not have a March installment of the monthly series, I am going to quickly summarize a few of the major dividend increases that were announced in February and March.

  • Realty Income (O) –  After my buying spree of Realty Income in January and February, I was very excited to see that Realty Income increased their monthly dividend once again.  Sure, the dividend only increase from $.2190/share to $.2195/share and the impact on my forward income is minimal since I only own 90.8 shares.  But I will never complain about a dividend increase and I’m glad to see Realty Income continue their streak of slowly, but surely, increasing their dividend.
  • Archer-Daniels Midland (ADM) – I noted in my February article that ADM had a streak of increasing their quarterly dividend $.02/share annually.  Well, that streak was snapped when ADM only announced a $.015/share increase in their quarterly dividend.  This was only a 4.7% increase, which was less than I was expecting.
  • TJX Companies (TJX) –  I strongly considered buying TJX towards the end of 2017 and I am now kicking myself for not making an investment decision earlier.  In February, TJX announced an INSANE 25% increase in their quarterly dividend and will repurchase $2.5b-$3b over the next year.  That is a lot of capital being returned to shareholders!
  • Pepsi (PEP) –  Pepsi’s dividend increase of 15% was great and I was so excited about the increase and corresponding price pullback that the company found its way on my March Watch List.  I have not purchased shares in PEP yet; however, if the price continues to fall, it will be hard to continue to ignore the company.
  • T.Rowe Price (TROW) –  TROW is one of my favorite positions to own.  The company has no debt and is a Dividend Aristocrat, what’s not to like.  On top of it, the company announced a 22.8% increase to their quarterly dividend February.  As a shareholder, I nearly did back flips when I read the exciting news.
  • Coca-Cola (KO) – Unlike their arch-rival, KO was not able to deliver as a strong of a dividend increase as PEP. KO only increased their quarterly dividend $.02/share, or 5.4%.  However, I must say, I’m not at all surprised by this based on the company’s recent history and their payout ratio.
  • Walmart (WMT) – Lastly, WMT also increased their quarterly dividend by only $.01/share per quarter.  However, this was only a 4% increase since their quarterly dividend is higher than KO’s.  Consistent with the company’s recent quarterly dividend increases.

Expected Dividend Increases in April 2018

And now, on to the fun part.  There have been quite a few dividend increases announced so far in 2018 as evidenced by the list above and the results from January.  It definitely has been a fun time to be a dividend growth investor.  I’ve been excited researching and getting ready to write about the following list of companies.  I know for a fact that Lanny and I will be on the edges of our seats waiting for the following companies to announce their dividend increases in April.

  • Procter and Gamble (PG) – PG is one of our Top 5 foundation stocks for a reason.  Finally, after a few years, the price fell enough that it finally made its way back on to Lanny’s March Dividend Stock Watch List.  And trust me, I will be watching the company closely over the next few weeks as well.  This dividend increase is a wild card in my opinion because of some of the larger than anticipated dividend increases posted by some companies post-Tax Reform.  Will PG surprise us with a double-digit dividend increase?  Or will the company continue to only increase their dividend by a low to mid single digit percentage?  Regardless of the outcome, I cannot wait to read these results!
  • Johnson & Johnson (JNJ) –  Another heavy-weight, foundation dividend stock has found its way on to our listing here.  In fact, this was one of the three companies that Lanny recently analyzed in his “Battle of the Consumer” stock articles a few days ago to see which competitor would come out on top.  JNJ is one of my favorite companies in my portfolio.  Over the last five years, the company has an average annual dividend increase of 6.61%.  I would be ecstatic if we received a double-digit dividend increase this month. Much like PG, I will be waiting on the edge of my seat for this announcement.
  • International Business Machines (IBM) –   This is the third dividend increase that I am expecting to receive in the coming month.   IBM’s dividend growth has slowed over the last few years, but here is what is crazy.  The company still has a five-year average dividend growth rate of 12% despite announcing only a 7.1% dividend increase last year.  Would it be too ambitious to expect a double-digit percent growth rate again in April?

Are you as excited for PG, JNJ, and IBM to announced their dividend increases as much as we are?  What companies are you expecting to receive a dividend increase from in the coming month?  Did you receive a nice dividend increase over the last two months that I did not summarize in the article?

Bert

DISCLAIMER: We DO NOT RECOMMEND ANY DECISION TO THE READER or ANY USER, PLEASE CONSULT YOUR OWN RESEARCH.   THANK YOU FOR YOUR UNDERSTANDING.
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24 thoughts on “Expected Dividend Increases in April 2018

  1. Yes, looking forward to PG and JNJ as you mentioned, Bert. Also, looking forward to SO and XOM as Tom mentioned. I have Bank of the Ozarks (OZRK) on my list as well – they raise quarterly. Should be an exciting month for dividend raises. I’m worried about PG though, as their 3 yr. dividend growth rate has been less than 3%.

    • ED,

      You should receive a nice increase from OZRK (or the newly named Bank OZK) considering the fact that a lot of community banks have announced solid increases in 2018. I’m actually pretty optimistic about PG and I think they are going to snap out of their recent funk (As you highlighted). I hope I am right and you are wrong 🙂

      Bert

  2. Hi Bert. I own several of the stocks you mentioned, and like you I am thrilled with these increases. My portfolio also includes Apple (expecting a decent increase due to cash repatriation) and XOM as mentioned by Tom and ED above. JNJ has a more attractive valuation these days – may be time to add to my position.

    So far this year, in addition to those you mentioned, the following stocks in my portfolio increased dividends in 2018: CSCO, MRK, PFE, and INTC. You may have mentioned these in prior summaries.

    Thanks for this invaluable information!

    • Dividend FIREman,

      Oh man the Apple announcement should be pretty exciting and I’m sure many in the community are waiting on the edge of their seats for it. These dividend increases have been awesome and I’m glad to see that you’ve received a nice benefit from them. Glad you enjoyed the article and thanks for sharing the companies that have announced increases for your as well.

      Bert

    • Ah, thanks for the catch. I looked back at the source I used and I misread something in the article. Thanks for pointing that out and it has been updated in my article. Much appreciated! And I don’t know the answer to that question, but man that sure would be an interesting consolidated company wouldn’t it. Talk about WMT expanding their market reach. But how would the two companies blend together? That could work out really well, or I think it could also potentially backfire.

      What do you think??

      Bert

  3. I’m expecting a dividend increase from XOM, APPLE and Flo this month. Hopefully a nice one from APPLE. I hope they stay away from the special dividend though. Some guy awhile back was trying to say why Apple should give like a 30.00 dollar a share special. No way I want nice dividend raises every year.

    • Doug,

      I should have added XOM and Apple. I can’t wait to see what Apple has up its sleeve and I would expect a pretty large increase as well. I don’t know why, but I have a pretty good feeling about it. Like you, I would prefer a standard increase to one large special dividend. Who wouldn’t want a larger, steadier stream of income over a one-time benefit. Let’s hope we are right!

      Bert

  4. As I have both PG and JNJ and I am definitely looking forward to the increases. I know it happens regularly, but I still somehow get surprised by the increases. It’s kind of like being surprised that I have to spend money to buy gifts at Christmas!!!

    • Dividend Portfolio,

      It is always nice to still get surprised by our investments. The only difference is that you are increasing your passive income rather than watching your cash outflow for Christmas. Now that’s the holiday shopping that I would like to see 🙂

      Bert

  5. Bert,
    I own a bunch of those and was excited for all of the increases, but TROW really rocked. Should be a strong year for increases, hoping to see more 10%+ increases.
    – Gremlin

  6. I am looking forward to JNJ as well. In the last two months I got raises from HD, DHR, BAM, O, MO, and STZ. HD had a double-digit percentage raise, MO raised from .66 to .70 only two quarters after their last raise, and the real winner was STZ which went from .52 to .74!

  7. Dividend increases are always welcome :). I own some of the big names that you mentioned up there such as PEP KO JNJ PG IBM etc.

    Always happy to get these increases :). I am looking forward to next week possible dividend increase news for JNJ XOM and IBM to be expected. PG increased dividend by 3.9% that was good too :).

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