Wow. It is the fourth quarter already. It is hard to believe that the calendar is about to turn and the leaves are about to change colors. With a new month at hand, you know that means…another installment of our expected dividend increases series. For those of you that are new to the blog, each month we summarize a listing of companies that are expected to announce dividend increases in the coming month. The two of us LOVE dividend increases. So we thought we would share some of the excitement with you. Now, here are the companies expected to announce dividend increases in October!
Actual Dividend Increases in September 2018
Before looking ahead, I always like to review the actual results from the prior month. After all, what fun would it be if we didn’t follow-up on the results? We predicted 5 companies would increase their dividend in September!
- Company #1: Lockheed Martin (LMT) – Let’s start this month’s summary off with a bang. LMT announced a very solid 10% increase in their dividend. This is right in line with their five-year average. I’m sure Lanny is pumped considering he owns a healthy position in LMT!
- Company #2: McDonalds Corporation (MCD) – I promised in my last article that there is always a funny story about the McDonalds dividend increase. And this year did not disappoint. Lanny and I were talking on the phone about something. Out of nowhere, he exclaimed “Oh man, we forgot about the McDonalds dividend increase that was supposed to be announced today!” He was driving, so I opened up my laptop quickly. I had to pause for second, because the last thing I was expecting was to receive a 15% dividend increase! Man, every year this is a fun and exciting dividend announcement.
- Company #3: Microsoft Corporation (MSFT) – Sure, a 9.5% dividend increase is pretty solid. But the amount was below their 13% five-year dividend growth rate that the company had entering the month. Mad it would have been nice if the company could have rounded it up to 10%!
- Company #4: Verizon Corporation (VZ) – This telecom giant should increase their dividend in the first part of the month. The increases have not been that large, but neither are their arch-rival AT&T. VZ is a classic high-yielding, low dividend growth rate stock.
- Company #5: Philip Morris International (PM) – I went out on a limb on this on and unfortunately, I was wrong. Earlier in the quarter, Altria Group announced their second dividend increase of the year. So I figured their competitor would follow suit. Unfortunately though, PM did not announce a second dividend increase. Darn!
- Bonus Company #1: JP Morgan Chase (JPM) – In July, there were a ton of bank stocks that announced a dividend increase. A lot of them were smaller in name. Finally though, in September, one of the big banks announced a HUGE dividend increase. JPM increased their quarterly dividend payment by 43%! You read that right, 43%. Just an incredible growth rate for shareholders. Congrats!
- Bonus Company #2: Realty Income (O) – One of our favorite sayings on this blog is that every dollar counts. It is something we live and breathe by here because we truly believe it. In this case, Realty Income’s may be small; however, over time, they add up. This month, Realty Income increased their monthly dividend from $.220/share to $.221/share. Again, a small increase. However, their dividend was $.213/share as of 12/31/17. So as you can see, all of these small increases are really starting to add up!
- Bonus Company #3: Texas Instruments (TXN) – TXN isn’t a Dividend Aristocrat and we don’t own shares in the company, so that is how they fell through the cracks in my last article. I’m sorry I missed it, because TXN increased their dividend 24%!
Expected Dividend Increases in October 2018
With the past behind us, it is time to look forward. Man those were some awesome dividend increases in September. Let’s see if the 2018 trend will continue. Here are the companies expected to announce a dividend increase in October!
- Company #1: VFC Corp (VFC) – Let’s start this listing off with a Dividend Aristocrat! VFC has been on a tear this year and is up over 20% YTD! The company’s 5-year dividend growth rate is over 16%. Based on the company’s performance and the impact of tax reform, I wouldn’t be shocked to see a greater than average dividend increase this year!
- Company #2: American Electric Power (AEP) – A massive electric utility headquartered in the Buckeye State. While the company has been paying a dividend since the early 1900s, the company has only increased their dividend annually since 2010. Over the last five years, AEP has an average dividend growth rate of 5.25%. I would expect the company’s increase to be in line with their recent history.
- Company #3: Aflac Corporation (AFL) – This Dividend Aristocrat already announced a massive dividend increase in January. Man I remember how excited Lanny and I were to read about this like it was yesterday. It turns out, that was one of many great dividend increases announced during the year. Now I wonder inf AFL will get back on track and announce their ordinary dividend increase in October. Or, did the company change the month they plan to increase their dividend from October to January? I guess we will find out shortly.
- Company #4: WestRock Co (WRK) – Lanny and I both initiated positions in this company in the third quarter. I knew the dividend was set to increase in the given months at the time of purchase, but it is astonishing how quickly that month arrived. Man has time flown this year! WRK will increase their dividend either the last week of October or the beginning of November, so keep your fingers that it arrives this month. Last year’s increase was 7.5%, so I’m hoping the increase will AT LEAST be that this year.
- Company #5: Eaton Vance Corp (EV) – While I am a shareholder of EV’s competitor, TROW, I am always interested in following companies in the Asset Management industry. EV is a Dividend Aristocrat, a huge plus. EV increased their dividend 10% last year and I wonder if the company will surprise us all.
Summary
Five companies are expected to announce an increase and I can’t wait to see the results start to trickle in during the month. It is crazy to see the impact that all of these dividend increases are having on our portfolios and dividend income summaries. If you want proof, check out the growth rates posted in our last dividend income from YOU the blogger articles. Comment after comment highlighted the fact that people are doing amazing things and the results are real. Hopefully this month will be as successful as the last!
What did you think of the dividend increases announced last month? How many did you receive? Did you receive any other dividend increases that weren’t listed above? Are you expecting any additional dividend increases that I left out of this article?
Bert