Thanksgiving is behind us and the next batch of holidays are quickly approaching. Man this calendar is turning too fast. Now that it is December, It is time for the next installment of our “Expected Dividend Increases” monthly series. Each month, we predict the companies that are expected to announce a dividend increase in the coming month (and review the results from the previous month). Let’s review the expected dividend increases in December 2019!
Before we jump into the dividend increases, we should explain the why. WHY are we so passionate about dividend increases? The name of the game on our website is Financial Freedom. To help achieve this, over the years, we have been working our tails off to invest every possible dollar we can into dividend growth stocks to build a growing dividend income stream. We build this income stream by finding undervalued dividend growth stocks that have a history of INCREASING their dividend using the 3 simple metrics of our Dividend Stock Screener.
The impact of dividend increases is real. Lanny talks about it quarterly. Dividend increases added over $333 to his forward dividend income this year alone. The proof is in the pudding, that’s all we are going to say.
We’re both building the foundations we need, one day and one step at a time. See the foundations here:
- Our Dividend Stock Portfolios showing each individual holding and the dividend income each produces.
- Our Dividend Income page showing each monthly dividend income total.
Actual Dividend Increase in November 2019
Before we look ahead to December, we like to look review the previous month’s expected dividend increases. After all, we report what’s expected, so why not make sure these companies delivered as anticipated. Here were the expected dividend increases from November:
- Company #1: Sysco Corporation (SYY) – Now here we go. Let’s start this post off with some fireworks! After years of mid-single digit dividend growth, SYY erupted and announced a 15% dividend increase this year. That is excellent news for shareholders. Could the sleeping giant finally have woke up?
- Company #2: Hormel Foods Group (HRL) – Hormel is a Dividend Aristocrat that has increased their dividend by a large margin over the last five years (16% average). This year though, like many other companies, they announced a lower dividend increase. 11% is still a nice dividend increase; but it would have been great to see them exceed their five year average.
- Company #3: McCormick & Co (MKC) – MKC is pretty darn consistent. Last article, I noted the company’s five-year average dividend growth rate is 9%. This year, their dividend increase was 8.8%. Right in line with history. That’s how you add some spice to the holiday season MKC.
- Company #4: Walt Disney Co. (DIS) – This has been a busy month for DIS. Much of the company’s press lately has revolved around the launch of Disney+. Lost in the details of the Disney+ launch was the fact that the company did not increase their dividend in November. Historically, the company has announced their increase during the last week of November or the first week of December. As soon as they announce the increase, I will update the article!
- Company #5: Nike (NKE) – Nike’s path to becoming a Dividend Aristocrat gets another step. Nike just announced an 11.3% dividend increase, a very nice clip for the company. I noted that the company historically announced a $.02 per share increase in their quarterly dividend. This year, the increase was $.025 per share. Enjoy the extra half cent NKE shareholders!
- Company #6: AbbVie Corporation (ABBV) – I’ll keep this one short since I actually discussed the actual increase in last month’s article. ABBV increased their dividend 10.2% at the beginning of November.
- Bonus Company #1: Iron Mountain (IRM) – Shame on me for being a shareholder of IRM and leaving this company out of last month’s article. But I guess I can make amends for this now. IRM announced a very small dividend increase this year. The increase was only 1.3%. IRM is a high yield, low dividend growth company. So a small increase was expected. But this was much lower than their recent history. This hasn’t been the best year for IRM and hopefully they can turn it around in 2020.
Expected Dividend Increases in December 2019
A few surprises last month, especially from Sysco. I was not expecting a 15% dividend increase! That’s incredible. Now, we are moving on to the fun part here. Let’s take a look ahead to December. Judging by this list, it will be a busy month for us dividend investors! Let’s jump right in and review the expected dividend increases in December.
- Company #1: AT&T (T) – Every year, Lanny and I try to convince ourselves that AT&T is going to increase their quarterly dividend by an amount greater than $.01 per share. And each year, the company sticks to their traditional increase. But my gut tells me this is NOT going to be the year they break their streak. Especially given their focus on paying down their debt after their DirectTV acquisition. I’m penciling in a $.01 per share increase for T.
- Company #2: Pfizer (PFE) – PFE is another consistent dividend increaser. The company continues to increase their quarterly dividend by $02 per share. Like AT&T, I don’t see that changing this year. So pencil me in for another $.02 increase for the pharmaceutical giant.
- Company #3: Boeing (BA) – Now this will be a very, very interesting dividend increase to monitor. Given Boeing’s issues with the 737-Max and the cash flow implications of the problems, it is difficult to forecast their dividend increase for the year. The company has announced some large, double-digit percent dividend increases in recent years. Will they continue doing so this year given their issues? I guess we will find out in the middle of the month.
- Company #4: Abbott Laboratories (ABT) – It wasn’t that long ago that ABBV and ABT were one company. ABBV announced that nice 10% dividend increase last month (as we’ve mentioned many times already). Will ABT follow suit? In fact, will ABT even beat their other half of the former company. ABT’s five-year average dividend growth rate is 7.8%. So it will take one heck of an announcement to beat ABBV.
- Company #5: ABM Industries (ABM) – There is nothing flashy about ABM or the industry the company operates in. Neither are the company’s dividend increases. Their five-year average dividend growth rate is just over 3%. Unfortunately, the company doesn’t offer shareholders a large dividend yield either (<2%). Overall, I am going to stay away from this company!
- Company #6: Realty Income (O) – For some reason, I always forget to include Realty Income in the monthly article. PRobably because the company increases their dividend so frequently! But this month, I actually remembered! Realty Income is set to announce their typical quarterly dividend increase. This won’t be there large dividend increase. That will come in January. So shareholders, expect a small dividend increase towards the middle of December.
- Company #7 – Mutual Fund Families – Okay, so this isn’t exactly a “company” here. But December IS THE MOST EXCITING month for dividends because all the mutual funds held in our retirement plans, and other portfolios, are announcing their capital gains distributions. These will contribute to some hefty dividend increases for bloggers I’m expecting many “Record” setting performances for bloggers to end 2019. I cannot wait for this!
A lot of companies, right? December is going to be an action filled month. Hopefully by now, you all can understand why we love dividend increases so much. And maybe, just maybe, we are converting a few of you as well!
Did you receive any dividend increases in November that I did not include in this article? What dividend increases are you expecting this December? Do you think the mutual fund families will announce large capital gains distributions given the booming stock market?
Bert