Expected Dividend Increases in July 2019

Ah, dividend increases.  The name of the game for dividend growth investors.  The statistic that we all watch and monitor SO closely.  In fact, the two of us obsess over it.  So each month, I put together a listing of companies that are expected to announce a dividend increase.  Dividend growth has slowed this year and it is a little frustrating.  But that doesn’t mean we are going to stop watching closely.  Here is out listing of expected dividend increases in July!

Actual Dividend Increases in June 2019

Usually, this is my only post about announced dividend increases during the month.  However, at the end of June, Big Banks announced massive dividend increases after the completion of stress testing.  It deserved its own article; so I covered the bank dividend increases in a separate article.  But there were still other non-bank companies that announced dividend increases.  For the ones I highlighted in last month’s article, here are the actual dividend increases announced:

  • Company #1: Kroger Company (KR) – As two shareholders of the grocery store, we were eagerly awaiting this dividend increase.   And boy did the company deliver.   Kroger announced a 14% dividend increase.  It made me feel a lot better about the company after their performance over the last 52 weeks.  It clearly made Lanny feel better as well.  Kroger earned a spot on his July Watch List after the announcement.  To be honest, I am very interested in the company as well and may have to make a move if the price slides!
  • Company #2: Target Corp. (TGT) – My wife and I just finished shopping for baby supplies there this weekend.  We were couponing and earning over $2 in rewards using Shopkick browsing the aisles.   But that is besides the point.  For those that missed it, Target announced their standard $.02 per share increase in their quarterly dividend.  At least that his been standard for the last three years.   Despite the fact the increase was only 3.1%, the number felt right based on the retail landscape.  The company is battling Amazon and Walmart for customer’s hearts.  They must save some capital for the improvements necessary to compete.
  • Company #3: Realty Income (O) –  The Monthly Dividend Paying company increased their dividend for the 102nd time.  Their dividend increase was…small.  But hey, we’re all Realty Income shareholders.  We’ve grown to love their consistent, small dividend increases.  Their monthly dividend is now $.2265 per share, up from $.2260 per share.   Every dollar counts.  In this case, Every Penny counts.
  • Company #4: Starbucks Corp (SBUX) – Well.  It looks like Starbucks won’t announce two dividend increases in 2019 like we did in 2018.  Is that really surprising though, given the slowdown in dividend growth this year?  Before last year, Starbucks increased their dividend every November.  I’m expecting the announcement towards the tail end of the month.
  • Company #5: Medtronic PLC (MDT) – The company is consistent.  MDT’s five-year average dividend growth rate is 8.29%.  Guess what their dividend increase was in June?  8%.  Consistency is key for Medtronics.  Man would it be nice to have that steady dividend growth rate right about now.

Expected Dividend Increases in July 2019

Let’s look forward now.  Remember, if you own a bank stock, go back and check your dividend.  Because chances are, you received one in July.  There is a great chance that it was a massive one!  Now, let’s look forward.  There are not a lot of expected dividend increases in July, but there are some great names in this list.

  • Company #1: Stanley Black & Decker (SWK) – I personally do not use Stanley Black & Decker tools.  I’m a Ryobi guy.   But SWK can be found in a lot of households in my neighborhoods.  The Dividend Aristocrat does not have a strong five-year average dividend growth rate.  But the average rate of 5.72% is a heck of a lot better than some of the other dividend increases announced so far.  However, I think SWK will provide an excellent barometer for what to expect for the second half of the year.  Especially in the current economic environment.
  • Company #2: Walgreens Boots Alliance (WBA) – I don’t own WBA.  I own CVS instead (in fact, CVS was on my July dividend stock watch list).  Walgreen’s 10% dividend increase in 2018 was pretty sweet.  Especially compared to their competitor’s stagnant dividend.   The stock has been beaten up in 2019.  So will the company announce a large dividend increase despite the fact the stock is down 20% YTD?  Let’s find out.
  • Company #3: J.M. Smuckers (SJM) – SJM is my favorite company…that I’ve never owned.  SJM has appeared on my watch list plenty of times over the years.  But for some reason, I’ve never made a move.  Maybe it is my desire to own another company from my area.  Or maybe it is the company’s strong consumer brands.  Either way, I’m always watching the performance of Smuckers.  The company’s 7.99% five-year average dividend growth rate is very nice as well.  However, my prediction in 2019 is that they will announce a lower dividend.  Let’s hope I am wrong though.
  • Company #4:  Norfolk Southern Corporation (NSC) – One of my favorite holdings.  The railroad company is one of my best performing stocks.  The railroad sector took a hiatus from increasing their dividend in the middle part of the decade.  However, NSC and others have been aggressively increasing their dividend ever since.  In 2017 and 2018, NSC increased their dividend twice!  Once in January and once in July. This will represent NSC’s second dividend increase in 2019.  I’m looking forward to it.  Unfortunately, I’ll have to wait until the very end of July to hear what it is.
  • Company #5: Delta Airlines (DAL)  – DAL is one of the company’s on Lanny’s July watch list.  Three of the last four years, DAL has increased their dividend in July.  So chances are, we should expect a July dividend increase.  Will DAL’s dividend continue soaring to new heights?  Okay, I’m really sorry for the bad pun there.  But the company’s five-year average dividend growth rate is absolutely ridiculous.  This will be a fun one to follow.

How many companies from this listing do you own?  What companies are you expecting dividend increases from in July?  What dividend increases did you receive in June that were not included in the article?  Are you frustrated with slowing dividend growth (outside of banks)?

Bert

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21 thoughts on “Expected Dividend Increases in July 2019

  1. Thanks for the list as always Bert!
    I enjoyed two raises during June – from TGT and O. I was hoping for one from SBUX as well but it seems that we will need to wait until November 🙂
    It looks like none of my companies will raise their dividends in July. Unless some company surprises me, which would be nice 🙂
    BI

    • Of course BI! The Starbucks wait is frustrating, but it isn’t surprising given the current year’s dividend growth. Hopefully you are telling me next month about all the surprises you have received 🙂

      Bert

  2. Sbux only raise once last year they just announced it a month early. If they do not raise this month i imagine some heavy selling might occur but do not know could take a plunge and create a buying opportunity. Also looking forward to the WBA and DAL increase if one of them drops before am going to add to them. DUK should be announcing soon as they announced July 6th last year. Im gonna guess on the increases for this year, DAL will give .04 cents a share. DUK .03 cents a share, WBA .04 cents share. See how good my guessing is

  3. I was a happy recipient of dividend increases from TGT and O last month. Aside from possibly GSK, I don’t think I am getting any dividend increases in July…. wow. Maybe next July. 🙂 Thanks for sharing!

  4. July will be slower than June for me but it should still be another step forward. I own SJM and NSC that should announce as well as HSY but that’s about it. So overall a relatively quiet month and it will be interesting to see what some of them do, namely SJM and HSY.

  5. I own WBA and NSC from your list but I’m also looking for increases from other holdings, namely Cummins and Duke Energy. Let’s get the 2nd half of 2019 started out right with some healthy dividend increases to pad our wallets. Thanks for putting this together! Tom

    • Tom,

      Oh nice, CMI. You know, I looked at them closely last year and almost initiated a position. I love your attitude. Let’s start the second half of 2019 off in style and crush it.

      Bert

  6. Love SBUX MDT and O. Retail is being heavily disrupted. I would severely limit exposure to only the best in class names with large MOATs avoiding KR and TGT until I can see repeated and predictable growth once again.

  7. I had a laugh out loud moment when I read your comment about SJM. They are also my favorite company I don’t own. They have been on and off my watch list for 5 years. I always wanted to buy but never pulled the trigger.
    and I have a sneaky feeling I will never own them since I have enough food companies in my portfolio. I’m like that with DPZ too….
    – John

    • John – I can’t believe another person has the same Smuckers experience. We really missed my chance when the company dipped below $100 per share. I’m still kicking myself about that one! Let’s find the right time to make that purchase (just not now haha)

      Bert

  8. Hi Bert
    I own some stocks of JM Smucker which is a consumer staple holding I like a lot. With regard to organic dividend growth of many companies, yes, it‘s clearly slowing. Just looking at Coca Cola, PepsiCo, Nestle etc. Overall, on average, dividend hikes have been in a range of 7 to 8 % in our portfolio, but I wouldn’t be surprised to see that growth rate fall in following years. But we are okay with that as long as we own reliable dividend payers and we rarely see dividend cuts.
    Cheers

    • A small dividend increase is better than a dividend cut any day of the week. I agree with your assessment. However, the optimist in me is hoping that companies turn it around and start announcing large increases 🙂

      Bert

  9. Bert,
    I’m looking forward to SJM’s dividend announcement, although I also believe the increase this year will be less than what we’re used to receiving. I’m also expecting an increase from EQM, have already received an increase from EPD, and am hoping for a wild card increase from BP to start a dividend increase streak.

    • Kody, I could definitely see a decrease as well. I’m a BP shareholder. So I hope you are right about this wild card increase. Back to back increases would be sweet. With Shell announcing their plan to increase next year, I wouldn’t be shocked about BP responding with something strong.

      Bert

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