Expected Dividend Increases in October 2019

Wow, 2019 is almost 75% of the way done.  Look at that, look at that!  If there is one thing that the year has taught us, it is that time is the most valuable commodity.  Maximize your time, that’s the name of the game.  For us, dividend growth investing is one of the main tools to unlock more time.  That is why focusing on dividend increases is part of our daily routine.  Each month, we take a look at major dividend paying companies that are set to announce a dividend increase in the coming month.  Here are the expected dividend increases in October 2019.

Actual Dividend Increase in September 2019

As always, before looking ahead to October, we have to check the results from last month’s article!  There are great names that announced dividend increases in September.  I am very excited to discuss the actual results with you.

  • Company #1: Lockheed Martin (LMT) – I received the following text from Lanny within minutes of the dividend increase being announced: “LMT announced a 9% dividend increase, BABY!”  Let’s just say Lanny was pretty excited.  And for good reason.  That’s a great dividend increase for LMT right there.
  • Company #2: McDonalds Corporation (MCD) –  This dividend stock is one of my favorite holdings.  Hands down.  McDonalds has been on a tear over the last few years and the company’s modernization efforts continue to pay dividends.  Speaking of dividends, this Top 5 Foundation dividend stock delivered an 8% increase in their quarterly dividend.  MCD continues to consistently increase their dividend, as their 5 year average dividend growth is a mid-to-high single digit percentage. Way to be golden arches, way to be!
  • Company #3: Microsoft Corporation (MSFT) – Microsoft’s market cap eclipsed $1 trillion dollars this year.  So what?  That pales in comparison to the fact the company’s dividend increase eclipsed 10%.  Am I right??  The company’s 10.9% dividend increase is a nice feather in the cap for a company that continues to deliver amazing results for shareholders.
  • Company #4: Verizon Corporation (VZ) –  Verizon is continuing the large telecom trend of slow and steady dividend increases.  Is their 2.1% quarterly dividend increase going to excite most people?  Probably not.  Is it going to outpace inflation?  We will see.  Will it bring you one step closer to financial freedom?  You bet.
  • Company #5: Philip Morris International (PM) –  PM announced a small $.03 per share increase in their quarterly dividend.  It is nice to see the company still increasing their dividend despite the merger talks with Altria.  It’ll be interesting to see how that situation plays out.

Expected Dividend Increases in October 2019

It will be hard to beat the name recognition that September brought.  I mean seriously, look back at those dividend stocks from the September listing.  Those are epic dividend paying companies!  Now, just because these companies don’t have the same “name” recognition for consumers, it doesn’t mean they aren’t recognized in the dividend investing community.  There are plenty of strong names and Dividend Aristocrats expected to announce dividend increases in October!

  • Company #1: VFC Corp (VFC) – While it may appear that VFC cut their dividend, that is simply not the case.  Earlier in the year, they separated Kontoor Brands from VFC.  Since the earnings were separated, it sure makes sense to separate the dividend payments as well.  While VFC typically increases their dividend in October, there is a good chance that they won’t this year due to the separation.  I could see their annual dividend increase schedule switching to the second quarter going forward.
  • Company #2:  Visa (V) – Visa, Visa, Visa.  The major player in a plastic world.  As Americans continue to swipe their card more frequently and companies continue to offer stronger credit card perks, it is no wonder why Visa’s stock has climbed so much this decade.  V is a low-dividend yield, very high dividend growth rate stock.  You may have to read this twice but Visa’s five-year average dividend growth rate is 20%!.
  • Company #3: American Electric Power (AEP) –  AEP continues to be one of the favorite holdings in my portfolio.  Strangely, it’s not because AEP’s headquarters is in Ohio.  Rather, due to the fact that the company is a very strong performer.  The company’s dividend is consistently increase in the mid to high single digit dividend range.  Their five-year average dividend increase is just over 6%.  My gut tells me that their dividend increase will be close to their average in 2019.
  • Company #4: WestRock Co (WRK) –  Lanny and I started building a position in the company last year.  For a while, as the price decreased, we averaged down our cost basis.  Now, we both own comfortable positions in WRK.  Since we have large positions, we are currently watching this dividend increase closely.  However, WRK’s price has fallen drastically since their 2017 peak and have not rebounded.  Sadly, I am not expecting a large dividend increase this year.  The question is, will their dividend increase exceed their 5.8% increase last year?  We shall see!
  • Company #5: Eaton Vance Corp (EV) –  EV has been on a tear this year. Interestingly, the asset management company does not have any debt and currently yield over 3%! In addition, EV has a nearly 10% five-year average dividend growth rate.  Maybe I’ll write a dividend stock analysis on Eaton to see if it is time to buy, even after their stocks strong 2019 performance.   From first glance, their metrics are very strong.
  • Company #6: Iron Mountain (IRM) –  Another stock that was added to our portfolios at the end of last year.  However, unlike many of the others on this list, 2019 has not been very kind to Iron Mountain.  Iron Mountain continues to build towards the future though as the company looks to snap out of their funk.  Unlike Visa, IRM is a high dividend yield, low dividend growth stock.  Therefore, I’m not anticipating a large dividend increase this month.  I would be shocked if the dividend increase is above 3%.

What dividend increases did I miss in the article?  Are you expecting any dividend increases in October?  Did you receive any that were not covered in September?  What companies on this list do you own?

Bert

Facebooktwitterredditpinterestlinkedinmail

10 thoughts on “Expected Dividend Increases in October 2019

  1. Bert,
    Long MCD, MSFT, VZ, VFC (fingers crossed, but ok with a hold), WRK, and EV from that list! Love the already announced increases and hoping to see strong growth elsewhere. That is the real sauce, the
    – Gremlin

  2. I’m long all the companies that gave you raises as well as HON which gave me a 9.8% raise too. I’m sure it’s a copy/paste error but PM announced a raise to $1.17 last month. It looks like you’re going to have a busy October for raises. We also own VFC, V and IRM so we’re anxiously awaiting those raises.

  3. Glad to have received the MCD increase. Thanks for reminding me about VFC, I forgotten they do typically raise their dividend in October! I will definitely keep an eye on it to see what happens. Thank for the post! 🙂

    • Looks like you are in line for a nice amount of dividend increases then D. Gotta love it. Let’s see if the rest of October is as volatile as it started. if so, you may have plenty of buying opportunities.

      Bert

  4. I own fractional shares in MSFT and VZ, in addition to whole shares in LMT (a new addition to the portfolio following their dividend increase), PM, and IRM. I’d love to eventually own MCD, V, AEP, and WRK as well, though I only view WRK as trading at an attractive valuation at this time. For October, I’m expecting a 3-4% increase in IRM’s dividend, as well as token increases in the distributions paid by EPD and EQM due to the fact they raise their distributions every quarter.

  5. I’m also axiously awaiting the WestRock announcement. I’ll be fine with a smaller dividend increase if the company wants to commit some capital to reducing debt. Its all about that risk-adjusted return.

Leave a Reply

Your email address will not be published. Required fields are marked *