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. Let’s review the expected dividend increases in November 2019!
Before we jump into the companies, 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. By finding undervalued dividend growth stocks that have a history of INCREASING their dividend using our Dividend Stock Screener, we are building a growing income stream of dividend income.
The impact of dividend increases is real. Lanny talks about it quarterly. Dividend increases added over $333 to his forward dividend income. 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 Increases in October 2019
Before we look ahead to November, 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. And plus, we even have two bonus dividend increases that we did not include in last month’s article.
- Company #1: VFC Corp (VFC) – Last month, I speculated that there was a chance that VFC wouldn’t increase their dividend due to the stock split. For VFC shareholders’ sake, I couldn’t be happier to be wrong. The company increased their dividend 11.6%. Not bad for the Dividend Aristocrat! VFC just reported earnings and their stock price fell accordingly. The yield is still a little too low for my liking; however, I will watch this price closely to see if something changes in the future.
- Company #2: Visa (V) – Lanny was all over this Dividend Aristocrat, for good reason. He has owned shares of Visa for a long, long time. In fact, if you ever ask him, he’ll gladly tell you that it is one of his best performing stocks…ever. You bet he was excited to tell me the moment that Visa announced the 20% increase in their quarterly dividend. Visa continues their reputation as a low dividend yield, high dividend growth rate stock.
- Company #3: American Electric Power (AEP) – AEP continues to be one of the favorite holdings in my portfolio. Last month, I reported that their five-year average dividend increase is just over 6%. I even predicted that the dividend increase would be right in line with their historical average. Unfortunately, the company’s 4.5% dividend increase fell below the average. As a shareholder, I’m a little disappointed. Especially for a company that has seen their stock price increase over 25% YTD.
- Company #4: WestRock Co (WRK) – Unfortunately, at the time I wrote this article, WRK has still not announced their dividend increase. I will update this as soon as WRK announces their dividend increase.
- Company #5: Eaton Vance Corp (EV) – For a company that is yielding over 3% and has no debt, you have to be excited about the company’s 7.5% dividend increase. This increase is particularly interesting in an industry that just had a major shake-up. It’ll be really interesting to see the impact that zero-trade fees has on the asset management sector and their dividends going forward. This is a positive sign. But let’s see what happens in 2020 when the full impact of zero fee policy is felt.
- Company #6: Iron Mountain (IRM) – Iron Mountain didn’t wow any shareholders with their 1.2% dividend increase. Personally, I wasn’t expecting a large increase; however, I was expecting something greater than 1.2%. Perhaps now, after several years of high dividend growth, we are starting to see dividend increases in line with what you would expect for a high yield, low dividend growth stock. Luckily, their current yield is over 7%.
- Bonus Company #1: Starbucks Corporation (SBUX) – This is a bonus due to timing. Starbucks announced a 14% increase in their quarterly dividend in their latest earnings release! I was just expecting this increase in November, so it came a few weeks earlier than anticipated. Strong dividend growth continues to be the name of the game for the coffee giant. Their 5-year average growth rate is still over 20%. Insanity.
- Bonus Company #2: Rockwell Automation (ROK) – ROK announced a 5.2% dividend increase right before Halloween. Another nice dividend increase that trickled in for Lanny before the end of the month. This has been a very strong quarter for ROK. While this dividend increase is definitely a slowdown compared to previous years, it is not surprising given the economic environment for much of 2019.
Expected Dividend Increases in November 2019
The bonus dividend increases were a nice surprise last month! Still, the fourth quarter continues to prove fruitful for dividend increases. With October behind us, let’s look ahead to our expected dividend increases in November.
- Company #1: Sysco Corporation (SYY) – SYY isn’t the most exciting company out there. The company just dominates in their sector. The funny thing is, I can guarantee that you have driven past the company’s silver trucks on the highway. They are everywhere! SYY is a Dividend Aristocrat with a mid-single dividend five-year average dividend growth rate. Consistency seems to by key with this company, so I am projecting a dividend increase somewhere between 6%-8%.
- Company #2: Hormel Foods Group (HRL) – Hormel was a missed opportunity for me years ago. I had a chance to invest in Hormel before the stock price took off. Lanny did, I didn’t. And he loves to let me know about it. Luckily, I atoned for this mistake a few years later and invested in Tyson Foods when the company’s metrics passed our Dividend Stock Screener. Couldn’t be happier with that investment today. Hormel is a Dividend Aristocrat that has increased their dividend by a large margin over the last five years (16% average). That may be tough to beat this year, especially as dividend growth has slowed. But I would expect the company to increase their dividend by at least 10% in November.
- Company #3: McCormick & Co (MKC) – Just in time for Thanksgiving! I couldn’t think of a more appropriate time for this company to announce their dividend increase. MKC’s stock has had a great year, up over 15% YTD. So let’s see if that translates into a strong dividend increase. The company’s five-year average dividend growth rate is 9%. An increase in line with their historical amounts would be clutch in the current operating environment.
- Company #4: Walt Disney Co. (DIS) – Has there been a more talked about entertainment company of late? Disney is taking on Netflix and other streaming services with their very affordable Disney+ streaming app. Meanwhile, the company’s acquisition of content is setting the stage for expansion of this new platform. I honestly have no idea what to expect from their expected dividend increase in November. I will say this though. As a big Star Wars fan, I cannot wait for the content the company is about to release in December. The trailers for the new Star Wars movie have been great.
- Company #5: Nike (NKE) – Nike’s getting closer and closer to becoming a Dividend Aristocrat. Nike’s stock continues to perform well, despite a recent dip. Looking at Nike’s dividend history, you notice an interesting trend. The company likes to increase their quarterly dividend by $.02 per share annually. My gut tells me that the company will continue this trend once again in 2019. Let’s see if I am right!
- Company #6: AbbVie Corporation (ABBV) – The last company on our listing has been a major addition to our portfolios over the last 12 months. Luckily though, we don’t have to wait in suspense to learn about this dividend increase, because ABBV has already announced it! ABBV delivered shareholders a 10.2% increase on the first of the month. They are not messing around. That is actually refreshing news for the company given their acquisition announcement earlier in the year. The picture of the combined entity is starting to become more clear.
What companies are you expecting to announce dividend increases in November? Did you receive any dividend increases in October that were not summarized in this article? What do you think about the current dividend growth environment? Have you noticed a slowdown as well?