Expected Dividend Increases in August 2018

The calendar is turning once again and you know what that means. It is time for the next installment of our expected dividend increases article!  For those of you that are new, each month, we try to aggregate as many dividend growth stocks in one article that are expected to increase their dividend in the coming month.  We love following dividend growth stocks and are always so excited when one of our holdings, or potential holdings, announces a dividend increase.  So we try to share that excitement with all of you!  Here is our expected dividend increases in August installment of the monthly series!

Actual Dividend Increases in July 2018

Before looking forward to August, I always like to take a look and see the results from the previous months.  Here are the companies that I mentioned were expected to increase their dividend in July and the actual results!

  • Company #1: Stanley Black & Decker (SWK) – SWK delivered a solid 4.7% increase in their quarterly dividend.  The ex-dividend date isn’t until September, so potential investors have plenty of time to capture this dividend.
  • Company #2: Walgreens Boots Alliance (WBA) – Technically, WBA announced this dividend increase at the end of June and I just didn’t have the time to update my article prior to its release.  Thanks for the followers that helped point that one out to me.   But WBA increased their quarterly dividend from $.40/share to $.44/share.  A very nice increase indeed!
  • Company #3: J.M. Smuckers (SJM) – It is so great, it has to be Smuckers’, right?  It is hard for me to write about the company and not include that saying.   SJM rewarded shareholders with a nice 9% increase their dividend.  So enjoy some of that extra jelly investors (Sorry for the bad joke).
  • Bonus Company #1 – Cummins Inc. (CMI) –  CMI is a company that has not performed well to date and therefore, has found there way to the top of my watch list!  It also helps that the company increased their quarterly dividend 5.6% this month.  Sure, it is lower than their 5-year average dividend increase of 17%.  But these results are skewed and the dividend increase closely resembles the previous two year increases.  That dividend yield continues to inch closer and closer to 3.5%!
  • Bonus Company #2:  Delta Airlines (DAL) – DAL is one of the three companies that were included on Lanny’s July watch list.  And his watch list was created before the company announced a 14.75% increase in their quarterly dividend.
  • Bonus Company #3: Duke Energy (DUK) –  It wouldn’t be a summary article without at least one utility increasing their dividend, right?  DUK announced a 4.21% increase in their quarterly dividend.  A solid amount for a high-dividend yielding company.
  • Bonus Industry – Banks –  If you are a shareholder of a bank, chances are you received a dividend increase in July.  There are too many to list out individually.  But man is it exciting to be an owner of many financial institution stocks.

Expected Dividend Increases in August 2018

And now, the fun part.  July was a CRAZY month for dividend increases once again and congratulations to all shareholders of the companies listed above.  With the past behind us, lets take a look at the companies that are expected to announce dividend increases in August.

  • Company #1: Illionois Tool Works (ITW) – For a company that is typically pretyy low-key, ITW has been on the radar of a lot of dividend growth investors lately after the company’s price fell post earnings release (due to a cut in guidance).  At the beginning of August, ITW typically announces their annual dividend increase.  Their 5-year average DGR is ~15%.  This will be an exciting one for sure given the recent fall of the stock price.  I’ll be watching this one closely for sure!
  • Company #2: Scotts-Miracle Gro (SMG)  – I have contributed a lot to the company’s top and bottom line this year since this is my first spring/summer as a homeowner.  I have to get my lawn into shape and SMG is one of the best in the industry for this.  Like ITW, SMG announces their dividend increase at the beginning of the month.  The dividend increases haven’t been large over the last few years.  This should be a fun one to see if their increase exceeds recent history like so many other companies have in 2018.
  • Company #3:  American Water Works (AWR) – This Dividend Aristocrat has increased their dividend for over 60 consecutive years! AWR is a low-yielding dividend stock with high-single percentage dividend increases (5-year DGR).  I don’t own a water utility and I would be interested in entering this industry one day.
  • Company #4:  Dover Corporation (DOV) – What is going on?  DOV is another company that announces their dividend increase in the first week of the month!   What a strange coincidence.  DOV has a 6% 5-year average DGR with a dividend yield in the low 2% range.
  • Company #5: Tyson Foods (TSN) – Tyson is not a Dividend Aristocrat and they have increased their dividend for only four consecutive years.  However, they have been paying a dividend since the 1970s, so there is some longevity to their dividend payment.  Their recent dividend growth rate is INSANE (5-year average DGR is over 30%), so I’m very excited to see what this company does this month!
  • Company #6: Altria Group (MO) – This one is a bit of a wildcard.  MO has already increased their dividend once in 2018. However, based on their target payout ratio, the company still has room to grow their dividend again if they choose.  So I think there may be potential for a second dividend increase announced in August.  I’m not guaranteeing this is going to happen, but hey, I’m allowed to have fun and speculate for one stock on this listing!

RECENT POST:  What is a Dividend (Part 1 of our Financial Education Series)

Summary

Looks like we have another busy month in store for us!   I’ve highlighted five companies that are expected to increase their dividend this month.  But as you all know and have witnessed so far in 2018, there are a ton of companies that have announced surprise dividend increases.  Isn’t that the best feeling out there?  Man, that is why we are always saving every dollar we can, making each dollar count, and trying to invest as much as we possibly can into dividend growth stocks!    I’m excited to see the results and some of the growth rates that are announced!

What companies increased a dividend for you this month?  Did I miss any big ones in my summary?  Which companies are you expecting to receive an increase from this month?

Bert

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18 thoughts on “Expected Dividend Increases in August 2018

  1. Lot’s of additional $ potential coming for holders of these names – nice to see DGI / dividends in action.

    This one just struck me as well “It wouldn’t be a summary article without at least one utility increasing their dividend, right?” While DUK made the list, I had expected there to be someone else – not any one in particular, just an additional utility name.

    As you mentioned, TSN also stuck out on this list for me. I haven’t been following directly (nor on my CLEAN-UP watchlist!), but I’ve seen / heard the name a bit more recently beyond the grocery store aisle. – Mike

    • Mike,

      I’m sorry I mislead you with the utility comment! Hopefully there will be an additional utility next month that was a surprise dividend increase. Dividend stocks continue to impress and provide great dollar amounts to us DGI investors. I’m really loving what has been in store for us. TSN is pretty darn appetizing, especially after the price tumbled with the decreased guidance. I have some heavy research to do tonight to determine if I want to initiate a position tomorrow.

      Thanks for the comment!

      Bert

  2. Thanks for mentioning MO. I was not thinking that they may increase again. That would certainly be nice as long as they are not jeopardizing their financial position in doing so. I also have Kraft Heinz on my list for August, although I’m not expecting a very large increase. Tom

    • Tom,

      I can’t guarantee MO is going to increase once again, but it is more fun to be hopeful than not, right? I can’t believe I forgot about KHC in this article. It should be entertaining to see if they have another increase. They have had quite the year so far, along with so many other consumer stocks.

      Bert

      • Bert, You prompted me to do a dividend deep dive on MO yesterday. As it stands for 2018 they have an 80% target payout ratio of adjusted diluted EPS and will operate at about 70%. The 6% dividend increase earlier this year was lower than their 7 year trend of 8% increases. So I think your optimistic hunch has some substance to it. Either this quarter or next I could see another 4-6% increase. Here’s hoping so! Tom

        • Tom,

          That’s exactly why I think they are going to increase their dividend. I wrote an article on SA and found something similar. Glad I’m not going crazy and wasn’t the only one that saw that 🙂

          Bert

  3. The CMI increase made me happy, and of your August list I’d really like to see MO with another increase as that’s the only one of those that I own. Another holding I have just announced a small increase, K with a 3.7% increase.

    • Divvy Dad,

      K coming in with the nearly 4% increase. Solid, solid. CMI was great too, I just wish their stock price would cool down. It has taken off and I was hoping it would fall to the $130/share range.

      Bert

  4. The 9% raise from JM Smucker was a pleasant surprise for me. I was predicting more like 5% or so. With Altria historically maintaining a payout ratio around 80%, I’m expecting a raise of 8 cents, + or – a cent.

    • I’m glad SJM provided you with a nice surprise! That is a pretty solid increase for the consumer staple industry, which has taken a beat down this year. Also, that is exactly why I am thinking MO is going to increase their divvy once again.

      Bert

  5. For my portfolio, July brought expected raises from Bank OZK (OZK), Skyworks Solutions (SWKS) and Hershey (HSY), and unexpected (2nd ones of the year!) from Fastenal (FAST), Blackrock (BLK) and Union Pacific (UNP). Those unexpected ones are especially thrilling. Needless to say, July was awesome with respect to dividend raises… the whole year has been, actually.
    I have expectations for an ITW raise in August, and was happy you hear you thought MO might raise as well, as it’s a recent addition to my portfolio.

    • ED,

      Wow. That’s quite the haul of dividend increases. I”m excited to read your monthly post and see just how much that added. The surprises are the best, that’s for sure. I saw ITW announced already and that was an insane dividend increase!

      Bert

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