Expected Dividend Increases in January 2018

After a strong end to 2017 it is time to usher in a new calendar year and a new set of goals.   Whether you are racing to update our investment portfolios one final time in 2017 or too busy smiling as you update your dividend income summary for the amazing December dividend and capital gains distribution you received from your mutual fund holdings, there are a lot of great things to be excited about.  One topic that always brings joy to the two of us…dividend increases.  So each month, we try to summarize the companies that are expected to increase their dividend in the coming month.  We are tracking this statistic like hawks, so we thought we would share our research with all of you.  This isn’t an all-inclusive list, so please share any dividend increases you received last month or are expected to receive in the coming month with us in the comment section.  Now, it is time to dive into the next edition of our monthly series.  Here are the companies that we are expecting dividend increase from in January!

Actual Dividend Increases – DEcember 2017

Before looking ahead, I wanted to take a few moments to summarize the results from the December edition of this article.  I am VERY excited to perform this review because one of my largest holdings announced their dividend increase a few weeks ago.  Let’s check out the results!

  • AT&T (T) –  This was the dividend increase that Lanny and I were eagerly waiting for each day.  We didn’t expect the company to deviate away from their $.01/shares increase in their quarterly dividend.  But we were both excited because we recently added to our positions in the telecom giant.  Now that I own 174 shares, I couldn’t wait to receive the additional income.  This dividend increase added $6.96 in forward dividend income to my portfolio.  Hopefully now you can see why I was so excited for this announcement!
  • Pfizer (PFE) –  We were both pumped about the T increase.  Since we also own shares in PFE, we were almost as excited about the looming PFE increase.  I remember the moment very well.  I received a message from Lanny that started with, in all caps “DUDE.”  I knew that meant only one thing…that one of our positions increased their dividend.   In the follow-up message, he had informed me that PFE increased their quarterly dividend by 6.25%.   Another solid dividend increase notched!

  • The Boeing Co. (BA) –  Boeing continued their streak of strong dividend increases this month by announcing a 20.4% increase in their quarterly dividend.  The company had a very busy month by announcing the authorization of an $18b share repurchase program and the acquisition of a rival, Embraer.
  • Abbott Laboratories (ABT) –  Last, but definitely not least, ABT.  Management announced a $.015 increase in their quarterly dividend.  The 5.65% increase was much better than the 2% increase last year.  So congrats ABT shareholders!

Expected Dividend Increases in January 2018

Man, some intense and exiting dividend increases were announced and December.  Talk about a tough act to follow!  This month should be interesting since Tax Reform was passed in December.  I’m not hear to debate the Tax Reform or express my personal opinions about it.  That’s a conversation for a different day. However,  I am very intrigued how the lower corporate tax rates are going to impact operating decisions and companies’ plans to return capital to shareholders via dividends and share repurchases.   I know that I am going to closely monitor the dividend announcements of the following three Dividend Aristocrats to see if there are any major differences from recent history based on the tax reform or if the companies will continue chugging along in a manner similar to prior years.

  • Consolidated Edison (ED) –  Ah, Consolidated Edison.  The consistent utility company that we consider one our top foundation stocks for a dividend investors portfolio.  Why?  The company has increased their dividend for 42 consecutive years (hopefully 43), maintains a very solid dividend yield, and is a major player in a highly regulated industry.   Their dividend growth rate won’t light the charts on fire as their average five-year DGR is less than 3%.  But since this is the only company on this list that I own, I will be paying particularly close attention to their announcement towards the end of the month.
  • Kimberly-Clark Corp (KMB) – Another Dividend Aristocrat here.  The consumer staple giant has made an appearance or two on my watch lists in 2017; however, the timing was never right for me to add a position to my portfolio.   KMB’s five-year average dividend growth rate is slightly over 5.5%, which isn’t bad considering similar growth rates for competitors such as PG and CL.   Can KMB deliver another high single digit percentage dividend increase for dividend investors?
  • Air Products and Chemicals, Inc. (APD) – Yet another Dividend Aristocrat that is expected to increase their dividend in January.  I must admit, I am not too familiar with APD or their business model.  But I am always open to learning more about a company that has a long-term history of increasing their dividend!  Currently, APD has a dividend yield of 2.33% and a five-ear average dividend growth rate of over 8%.

Do you own any of the three companies expected to increase their dividend in January?  Are you expecting any dividend increases from other companies?  Do you own AT&T?  If so, how much additional income did you receive from their dividend increase?  Also – if you received a dividend increase in December that was not included in this article, please share the company with us in the comments section!

Bert

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22 thoughts on “Expected Dividend Increases in January 2018

  1. Definitely some nice past increases and some good new ones on the way. Thanks for highlighting them. I’m long all of them except ED and APD. I had a small position in APD at one time but sold out in an effort to bring my stock count down and consolidate funds in fewer core holdings. Anyway, regarding tax reform, I’d like to think that the big corporate tax reduction will result in better dividend increases going forward, all else being equal. Only time will tell. Happy holidays guys. Tom

    • Tom,

      I would assume you are right about the impact of the tax reform and that is what my gut is telling me as well. I do not blame you for wanting to consolidate holdings slightly. After a while, it is crazy how many stocks you end up owning.

      Happy holidays to you as well!

      Bert

  2. Nice summary, Bert. It is a very exciting time of year for many reasons 🙂

    I’m also behind a couple days on a post I meant to get out on a 2017 recap / 2018 look ahead due to some holiday time off.

    On your questions, I’m long T as previously mentioned, which is our only current individual holding. I was excited as well for the additional increase. The other names of your list have also been on my radar.

    Thanks again for the great recap.

    • Mike,

      I’m sure it is some well deserved time off. Everyone needs a break every once and a while. Looking forward to your recap and outlook. I’m also long T and hope they decline so I can continue to add to my position.

      Take care,

      Bert

  3. Hi Div. diplomats,

    I own At-T and BA. and I like their increases
    I am curious about OHI in February will they increase again? stock price went down 5 6 dollar .

    Keep going on with this site.

    • Willem,

      I’m sure you loved the BA increase! How could you not. I’m curious about OHI as well. It is interesting to see what has happened with their price and more importantly, increasing payout ratio. Will be a fun story to follow.

      Bert

  4. Every little bit counts. Even that small increase from T still is nice to see. Especially with the merger stuff going on. Only other company I own is ED on that list. But a bunch are on my watch list so hope to make some new buys soon. Thanks for sharing.

    • Daze,

      Every bit does count indeed. You;ll have to keep us updated and let us know if you add any others from the list. I love owning ED and couldn’t be happier with the position. Amazing company, long term dividend increases, and they are in an industry that isn’t going anywhere. Oh yeah, and I support their bottom line with our check each month 🙂

      Bert

    • Geek, I’m hoping this is going to be reversed as well. Its funny, ETFs and mutual funds had mixed results compared to last year. Some increased and some decreased. I guess it just depends on which funds you held! You’ll see more about this in our dividend income summaries for sure.

      Bert

  5. Always nice to read about dividend increases especially when they are in your portfolio. The dividend aristocrats keep doing what they have always been doing… paying patient shareholders an ever increasing payout. Sure, we have some stumbles along the way… GE, WFC and others but on the whole they provide pretty well over the long haul.

  6. APD is the one on your expected list that I hold. Also looking to see raises from Blackrock (BLK), Fastenal (FAST), HanesBrands (HBI), and Omega Healthcare Investors (OHI). It will certainly be a nice way to kick off 2018 if they all deliver as hoped. Wish I had some BA as I think it would be a good fit for my portfolio, but alas we can’t own everything… or can we?

    • Wow ED! That is quite the list of companies expected to increase their dividend. I didn’t realize HBI was set to increase as well. I’ve been watching them closely recently but have never made a move. Let me know how the increase was in the next installment of this article. BA is a company that I always tell myself that I want to own one day. But whenever I look, they are expensive so I end up passing and have to watch shareholders enjoy crazy dividend increases from the sidelines. I wish we could own everything 🙂

      Bert

  7. I just love dividend increases! I don’t own any of the January increasers but I just realized that one of my December payers, Rockwell Automation, jumped their dividend 9.9%. What a Christmas gift, eh?

    Best wishes for many dividends in 2018!

  8. T raised their dividend like clockwork, i just hope this continues for the future.
    OHI are on tap to raise in january too (assuming their recent tenant troubles are temporary).

    – Desi Guy.

  9. It is a good season for those who invested in the stocks. Nevertheless, people that are interested can still buy their own “Cum-div”. However, they should expect a temporary drop in the stock price as the price will be adjusted for the dividend after the register has been closed.

  10. I own both T and PFE so I’m glad to see those companies increase their dividends. I don’t own any of the companies you’ve listed that are expected to increase their dividends in January, but with increases in both T and PFE, I’m happy.

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