Expected Dividend Increases in July 2018

I can’t believe I am about to say this.  But half of 2018 is in the books already.  Man oh man, where has is time going? As the calendar gets ready to turn, it is time for another installment of the “Expected Dividend Increases” summary article.  For those of you that are new to the website,  each month, I try my best to compile a list of companies that are expected to announce a dividend increase in the coming month.  While I can’t include every company in the article, I do my best to capture as many Dividend Aristocrats and other companies as possible.   Let’s see which companies are expected to announce dividend increases in July!

actual dividend increases in june

Before I jump ahead to the coming month, I thought I would review the companies that I discussed in the June edition of this article.  Let’s see if the company’s delivered as expected!

  • Company #1: Kroger Co. (KR) –  KR crushed their earnings release during the month, that’s for sure.  However, it appears that the company is set to increase their dividend in August rather than June.  After this last earnings release, I’m pretty darn pumped to see what KR has in store for investors. I’m expecting a pretty nice, double-digit increase.
  • Company #2: Target Corp. (TGT) –  TGT’s dividend growth rate stalled in 2017 (3.3%) compared to their five-year average.  But based on performance over the last 12 months, I was not expecting the company to return to their recent history of increasing their dividend by a double-digit percent.  Rather, their $.02/share increase in their quarterly dividend, or 3.23%, was very much in line with my expectations.  I just wish it would have been higher than that 5% discount they offer when we use their red card each shopping trip (kidding).
  • Company #3: Caterpillar Inc. (CAT) – CAT came roaring back in 2018.  After a small $.01/share increase in their quarterly dividend in 2017, CAT increased their dividend $.08/share.  This was a 10.26% increase.  That’s what we are talking about CAT.
  • Company #4: Realty Income (O) –  O announced an ever-so-slight increase in their monthly dividend in June.  Their month dividend increased from $.2195/share to $.22/share.  Will this move the needle significantly for most investors?  Not likely.  But in aggregate, each small dividend increase by O begins to add up.  As I said before, I’ll never complain about a dividend increase, regardless of the size!
  • Bonus Company #1: Starbucks Corp (SBUX) –  SBUX was one of the most talked about stocks this month, in my opinion.  The company’s earnings release caused the stock price to tumble, which presented a buying opportunity for a lot of dividend growth investors.  The earnings release may have had some negative new in it; however, the release also announced a 20% increase in the company’s quarterly dividend and an increased share buyback program.   From a DGI perspective, this was excellent news and it definitely increased my dividend income going forward.
  • Bonus Company #2: Medtronic PLC (MDT) – This Dividend Aristocrat increased their dividend by 8% in June.  This amount has been pretty consistent with the dividend increases over the last few years.  I don’t own MDT, but I’m pumped up for those in the DGI community that do.

Expected Dividend Increases in July

That was a lot of dividend increase folks.  Investors continue to enjoy the benefits better than expected dividend increases.  As we see in each blogger’s monthly dividend income summary article, the results of these increases are real and are starting to produce amazing results.   With June behind us, lets see which companies are expected to announce dividend increases in July!

  • Company #1: Stanley Black & Decker (SWK) – SWK’s stock price is down nearly 20% in 2018 at the time I am writing this article.  While my household primarily uses Ryobi tools, you have to love the fact that SWK is a Dividend Aristocrat. Their 5-year average dividend growth rate of 5.18% is low for a low yielding dividend stock.  So I’m excited to see if SWK surprises us with a large dividend increase post-tax reform.
  • Company #2: Walgreens Boots Alliance (WBA) – Despite the fact that I own shares in their competitor, CVS, I’m excited to see if WBA can provide investors with a solid dividend increase.  Last year, WBA increased their quarterly dividend 6.67%.  Can they exceed this mark in 2018?
  • Company #3: J.M. Smuckers (SJM) – It is so great, it has to be Smuckers’, right?  I’m kicking myself for missing a buying opportunity when SJM’s stock price dipped below $100/share.  For the first time in a while, their dividend yield exceeded 3%.  Well, I’m expecting the yield to rise above 3% once again once SJM increases their dividend in the coming month.  SJM’s 5-year average dividend growth rate is 8.5%, so the increase should be pretty solid.  At least that’s what I am expecting!

Summary

This month should be quieter than the recent months, as there have been A LOT of companies that have increased their dividend in the first half of 2018.  This has just been a remarkable year so far.  It has been a while since I have seen this many strong dividend increases from organizations.  Hopefully, this trend will continue in the second half of 2018 and we can continue to see our forward dividend income totals climb.   July will be interesting, so let’s see if these three companies can provide me with a nice birthday present.

Do you own SWK, WBA, or SJM?  What about the companies that announced an increase in June?  Did you receive any dividend increases that I did not include in the summary?  Are there any companies that you are expecting to receive a dividend increase in July not listed above?

-Bert

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25 thoughts on “Expected Dividend Increases in July 2018

  1. Yes, we’re half way there… (oh oh…)…but with dividends, we’ll make it I swear… (oh oh)…

    Sorry, had a moment after hearing some Bon Jovi on my playlist.

    Overall, a good list of increases. I especially like O, which will hopefully continue to be on the list each month 🙂 . And good point on SBUX, the drop in price made me add it a bit higher on my watch list.

    Thanks for the post! – Mike

    • hhaha I’m signing as I read the comment. After the first five words, I knew exactly where you were going with that one. Somewhere, my wife is rolling her eyes at me! I am always down to listen to some Bon Jovi. I can’t believe it took him this long to make it into the rock and roll hall of fame.

      Agreed – these were some very nice increases and the divvys continue to increase at a nice clip. Are you planning to add to SBUX?

      Bert

  2. Bert,
    It was great hearing about SBUX, and although TGT was a little off the watermark – it still beat inflation on an already good yield. Looking forward to seeing what SJM does, long O as well. Increases are the best dividend news there is.
    – Gremlin

    • Gremlin,

      SBUX’s increase was amazing. I wasn’t expecting a ton out of TGT in the long run and I’ll take what I can get from the retailer. Overall, I’m just always happy to receive and increase and it sure as heck beats the alternative. Should be an exciting month!

      Bert

  3. Hey guys. I also have Cummins and Duke Energy on my list for expected dividend increases. I will throw in Wells Fargo also, but the timing of their announcements has been more erratic than I would care for over the last couple years. Tom

    • Tom,

      CMI should be an exciting increase. The stock is beaten down, that’s for sure, and it has found a nice place on top of my watch list in the coming months. I checked it out a few years ago and the price immediately took off. Maybe it is finally back in the buy zone once again. Who knows what’s going to happen with WFC. They seem to always find themselves in trouble, and that’s never a good thing in the wonderful world of banking.

      Bert

  4. WBA moved their announcement up and gave shareholders a 10% raise today! Loved seeing that. June was a busy month with 6 increases for me and July should be pretty busy as well with another 5-6 increases. It’s been a great year so far for DGI!

    • JC,

      I heard the news! That one caught me by surprise and unfortunately I could not update it in my article. That’s a very nice increase and I was a little surprised given the news that is impacting the industry. Which companies are you expecting to increase their dividend??

      Bert

  5. I’ve been adding some SBUX lately, actually grabbed a few more shares today with the recent selloff to lower my basis. It was a huge increase. HSY and MDLZ are also on my list this month for increases.

    I can’t believe the year is half gone either!

    • Brent,

      Isn’t it crazy and sad how time just seems to fly by? Nice pickup with SBUX by the way and you may see a fellow purchase article here shortly. Despite the struggles, the increase in the divvy plus the share buyback has me hopeful that the company will continue to thrive in the long run. You are loving the candy industry and it should make a for a sweet July (couldn’t resist a bad pun).

      Bert

  6. nice guys. I dont own any of these stocks….. I dont think I got any raises last month in my portfolio but unforetunately got a massive dividend cut with corus entertainment.

    it burns….. lol ill continue to hold the stocks though the price dropped like a rock… Its a longterm game the cut is actually good for them

    cheers

    • PCI,

      Oh no! A dividend cut is never a good thing. I’m sorry to hear that and yeah, I can understand that it still burns. But there have been plenty of great companies that have cut their dividend, took some time to improve their balance sheet, recover, and increase the dividend once again. It sucks as a dividend investor, but it can often be a great thing for the company.

      Bert

  7. I only experienced increases from O and SBUX in June, but I have none of the companies listed that will increase their dividends in July. I’m good though because all the companies I’m invested in are reliable dividend payers who increase their dividends on a regular basis.

    • Hey – it isn’t a bad thing if the company isn’t on this list DP. There are plenty of other great dividend paying companies out there that increase their dividend in coming months.

      Bert

  8. Hey Bert,

    I have TGT and SJM. I like SJM for the long term but I’ve never been a fan of retail stocks and only picked up TGT back a year or two ago as a deep value trade with the intention of collecting to the dividend and waiting for the valuation to recover to more reasonable levels, as present time I believe $78+. So, if I get the opportunity to exchange my value in TGT for position in PEP (< $100) or another great staple, I may just do so.

    I was a bit taken back by the addition of WBA to the DOW index to replace GE. I am staying away from the CVS (pending vertical acquisition with Aetna) nor WBA. CAH is looking really interesting and has what I believe many would consider a rather large margin of safety at the moment despite the competition that appears to be looming from Amazon. CAH would be a new position for me if I go that route – who knows maybe I'll trade TGT for CAH 🙂 . Just my $0.02. Have a good weekend!

    • PIV,

      I have a large position in CAH. The price decline they have experienced has baffled me, given the fact they are still one of the largest companies in he industry, their expertise, and the economies of scale they benefit from. Sure Amazon will present a challenge, but who knows how large the impact will be. KR is doing just fine despite the fact Amazon entered the retail market. Nice pickup of TGT when it was beaten down so low. I hope you are enjoying your gains 🙂

      Bert

  9. As long as the food staples remain in the dog house I think you might get another shot at SJM below $100. Still liking CAT. Holding CAT for about 10 years all I ever heard about that company/stock was negative news. Debt high, orders low, increased competition, world economy in the dumps affecting orders, etc. etc. It’s such a solid long term performer for decades on end delivering solid dividends and raises with capital appreciation and still no favorable press. I’m speaking in general of course but CAT over the years never had many fans. I am happy to be one.

    • Divhut,

      I hope you are right about SJM. I’m sure the gains of this week will recede (at least that’s what I’m hoping). CAT is a great company. Their construction vehicles are everywhere and the truly are the major player in their industry. I’m a fan with you and I’m happy I decided to pick them up in my wife’s portfolio a long time ago.

      Take care,

      Bert

  10. I received the TGT and O increases in June. Lowe’s (LOW) delivered an nice increase in early June, and REIT W.P. Carey (WPC) delivered their expected quarterly increase in June as well.
    As for July, I don’t have any of the companies you mentioned, but I’m looking for Hershey (HSY) and Skyworks Solutions (SWKS) to announce increases. If I had to guess, I’m thinking HSY might raise the dividend 4%-6% at best – but maybe they’ll surprise me with something bigger. Unfortunately, HSY dividend increases have been on a downward trend the past few years. SWKS is tougher to gauge, as they don’t have a long history of paying dividends yet, but I’m hoping for something in the 10%-15% range.

    • ED,

      Man oh man, those are some nice dividend increases right there! I completely forgot about LOW! I hope you are right about HSY and their dividend, so I’ll keep my fingers crossed for you!

      Bert

  11. Thanks for the overview DD!

    I own 80 shares of SBUX already… this significant price drop makes adding another 20 very tempting. And of course combined with a giant 20% dividend boost!

  12. Can’t believe $SBUX has dropped, when I always go into the store, its busy with people. I could see it dropping to the 41 range if these earnings don’t go well on 7/26. If they’re doing a 20% increase in divs, they’re either enticing people to keep in it, or think business is fine. I think its the latter.

  13. Lots of increases. Own a few on that list, TGT and O. Nice seeing both companies rebound since their sectors were both hit pretty hard within the past year. Shows the long term hold strategy is working. Thanks for sharing!

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