Expected Dividend Increases in September 2019

We are closing in on fall.  Football season is right around the corner, along with postseason baseball.  The Browns are the darlings of the NFL so far.  So let’s just say football is the talk of the town these days.  But let’s not forget how much dividend increases are discussed as well.  Maybe not by the city, but definitely by Lanny and I.  Heck, we are on the lookout 24/7 trying to find new dividend growth investments to add to our portfolios.   For those of you that are new to our website.  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 September!

Actual Dividend Increases in August 2019

Each month, prior to looking ahead, we review the previous month’s article to see the results.  We predict the dividend increases.  So why not follow through and talk about the actuals!  Here are ther results for the five companies featured in last month’s article.

  • Company #1: Illinois Tool Works (ITW) – An interesting company to start of this recap.  ITW didn’t shake the world like they did last year when announcing a 28% dividend increase.  In fact, the 7% dividend increase announced is significantly lower than that mark.  This is much lower than their average, but not surprising given the global uncertainty today.  My guess is that the company went the conservative route in 2019 and will return to larger dividend growth with a clearer global forecast in 2019.
  • Company #2: Scotts-Miracle Gro (SMG)  –  My predictions last month must have been while I was wearing rose colored glasses.  While I projected a nice dividend increase due to stock price appreciation, it turns out there wasn’t a direct correlation.  SMG only increased their quarterly dividend $.03 per share, or 5.5%.  Not bad.  But definitely below my expectations.
  • Company #3: Altria Group (MO) – Slow and steady, Altria continues to chug along.  Our dividend stock analysis had nice remarks for Altria when written prior to the dividend increase.  And the 5% dividend increase will only sweet then companies insane dividend yield.  At a certain point, the company’s near 7% dividend yield will be too difficult for many investors to ignore (including me).
  • Company #4:  American Water Works (AWR) –  The biggest surprise this month came from AWR, the water utility.  I love AWR because it is a company that is in an industry for life, as Lanny described so well in an article in the past.  Last month, we mentioned how this Dividend Aristocrat had a five-year average dividend growth rate of 6.32%.  Well, the company crushed that this year by announcing a 10.9% increase in their quarterly dividend.  Glad they beat their average; I’m just mad I’m not a shareholder.
  • Company #5:  Dover Corporation (DOV) –  DOV has a long history of increasing their dividend; however, the company is a low dividend yield and a low dividend growth rate company.  Not my type of investment.  In August, DOV continued their low growth streak by increasing their quarterly dividend by only $.01 per share, or 2%.  I’ll have to pass for now.

Expected Dividend Increases in September 2019

Man, after summarizing August’s dividend increases, I am feeling a little underwhelmed.   The increases were not that large.  But September is looking to change that feeling.  There are some heavy hitting dividend paying companies this month.  Let’s see the companies that are expected to announce dividend increases in September.

  • Company #1: Lockheed Martin (LMT) – LMT is a company that has been on a TEAR this last decade.  It was one of the first dividend stocks that Lanny owned and he has ridden that train to prosperity (and one day financial freedom).  The company has a double-digit five-year average dividend growth rate (10.85%) and a solid dividend yield (2.3%).  I don’t foresee any reason why the company  won’t have another strong increase once again.
  • Company #2: McDonalds Corporation (MCD) –  One of our Top 5 Foundation dividend stocks .  Man am I looking forward to this dividend increase.  McDonalds has done an excellent job re-branding and modernizing their restaurants and menus.  The market is clearly impressed, and so are customers, as I always see a line wrapped around the store.  This is one of my favorite dividend growth stock dividend announcements to read about and 2019 should not be any different.  Gotta love the golden arches!
  • Company #3: Microsoft Corporation (MSFT) – Technology is the sector that has always been under-represented in my portfolio.  Microsoft joined the $1 trillion market cap club this year.  An impressive feat in itself.  Now let’s see if the benefits of that accomplish trickle down to dividend investors.  Sure, the price has appreciated.  But let’s not forget about the companies dividend! Shareholders shouldn’t complain too much given their 10.5% five-year average dividend growth rate.
  • Company #4: Verizon Corporation (VZ) – The telecom industry is heating up.  Verizon and AT&T have been the two major players for year, increasing their dividend slowly along the way.  But the combined T-Mobile/Sprint company will bring a new, serious contender into the competition.  Customer promotions are likely about to get wild, which doesn’t bode well for a larger than expected dividend increase.  But hopefully VZ has something up their sleeve!
  • Company #5: Philip Morris International (PM) –  Now, it’s PM’s turn to increase their dividend.  Will PM top MO’s 5% dividend increase last month?  Which tobacco king will reign supreme?  Am I making this overly dramatic (probably)?

How many companies from this list do you own?  Do you think AT&T and VZ will increase their dividend by a larger amount with increased competition?  Do you think PM’s dividend increase will exceed MO’s?  What is your favorite football team?

Bert

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19 thoughts on “Expected Dividend Increases in September 2019

  1. Our August was relatively slow with just 3 raises announced. MO with the solid 5%, BNS with the solid 3.4% on top of the ~2-3% raise earlier this year and one that I had missed, LHX with a solid 9.5% raise. September should be much busier since I own 4 of the 5 you mentioned plus Realty Income should give another small bump and HON should also announce one towards the end of the month. Since I don’t expect much in terms of purchases next month it’s great to see 6 likely raises on deck. I might have to take a look at AWR. I don’t own much in the utility space and nothing that’s specifically related to water.

    • JC,

      Sadly, the MO dividend increase was quickly dwarfed by the rest of the tobacco news. My goodness. I like the double increases from BNS. It is always a nice touch. THanks for sharing. I can’t wait for Realty Income’s next increase. It is by far my favorite holding.

      Cheers,

      Bert

  2. Like Chris, I’m also a Green Bay Packers fan. Admittedly, I’m far more excited for the NBA season to begin than the NFL season as I’m much more of a basketball fan than a football fan, not to mention that the Bucks are much better positioned to win a title than the Packers. On the dividend front, I own 3 of the 5 companies listed that will likely be announcing dividend increases in September.

    • Kody,

      I can’t blame you for looking forward to the NBA season. Giannis is a monster. It is going to be fun watching him grow as a player. I hope he develops like LeBron did throughout his career (huge Cavs fans here). The Packers will be fun and the offense should be fun to watch under LeFluer. Much more than McCarthy!

      Besiders for football, itll be fun getting those dividend increases this month!

      Bert

  3. Thanks for the list of dividend growth stocks to add to my watchlist. I agree with your statements about McDonald’s. Very safe and recession-proof business with an amazing brand and product line. Surely, it’s a good stock for any FIRE portfolio.

  4. Hi Bert,
    I own none of the ones that have already increased the dividend and own all of the ones that are expected to raise the dividend.
    I think AT&T will do a small increase and am not sure about VZ.
    As for football, I have to go with my hometown Seattle Seahawks.

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