Expected Dividend Increases – October 2017

The fourth quarter is upon us.  9 months of dividend income in the books, 3 more to go for 2017.  It has been an exciting journey so far, that’s for sure!  Last week, we published our monthly dividend income summary article where we review the growth and progress from a lot of fellow bloggers in the dividend growth community!  Not only does it have me motivated, but it show the true power that dividend re-investment and dividend increases can have on your portfolio.  Today, we will look ahead to the month of October and see which companies are expected to announce dividend increases in the coming month!

actual dividend increases – september 2017

In our article from last month, I listed four powerhouse companies that were expected to announce a dividend increase in September.  Now I know there are other companies that increased their dividend as well; however, this section will only summarize the four from the previous article.  But if I left out a notable dividend increase or one of your holdings/favorite stocks increased during the month.  PLEASE share the dividend increase and the impact it may have had on your forward income in the comment section.  Did these four companies deliver??

  • McDonalds (MCD) –  Lanny and I had quite the celebration when MCD increased their dividend towards the end of September.  The company announced a $.07/share increase in their quarterly dividend, or 7.4%.  This dividend increase had a HUGE impact on my forward income, increase my forward dividend income by $11.22!  Now I’m loving that!
  • Lockheed-Martin Corp (LMT) – Boom! Right as the month comes to a close, LMT delivers a 10% increase in their quarterly dividend.  Lanny nearly fell out of his seat when he learned about the increase because it provided him with over $26 in additional annual income! Here was his instant reaction:

  • Microsoft – (MSFT) – Last month I mentioned that I was interested to see if management posted a mid-to-high single digit dividend increase or if they would revert to a double-digit dividend growth rate for the year.  Well, MSFT increased their dividend 7.7% during the year.  Which is not bad, but once again, lower than the high dividend growth rates posted earlier by MSFT and by others in the industry.   Investors that own shares of Microsoft, what are your thoughts about this increase??
  • Philip Morris International (PM) – PM posted a 2% dividend increase in 2016, so the bar to cross was pretty low entering into the month.  In September, PM increased their quarterly dividend by 2.88%.  The increase wasn’t what I was hoping for, especially given the large increase by their competitor Altria Group, but it was an increase from the prior period.  Hopefully PM will continue to grow their dividend growth rate in the coming years!  This increase had a modest impact on my forward income totals and our annual dividend income increased by $4.26 as a result.

Expected Dividend Increases – October 2017

Okay, okay.  Now we are in business.  September had some exciting dividend increases and hopefully all of you benefited from the four increases listed above.  We are still so pumped about the MCD increase and the extra income it produced!  This month, I once again found four great companies that are expected to increase their dividend in October.    The expectations are HUGE, so let’s take a look at the four companies and some of their recent dividend increases to see what type of increase we should expect in the coming month.

  • VF Corp. (VFC) –  VF Corp has increased their dividend for 44 consecutive years, and hopefully October will represent the 45th increase.  Last year, VF Corp announced a 14% increase in their quarterly dividend.   While this may seem like a large increase compared to other companies, a 14% increase last year was par the course for VFC as the company has a five-year average dividend growth rate of ~18%.  Amazing.  Maybe it is time to finally re-visit the company that Lanny covered a lot at the end of 2016 and the beginning of 2017.
  • AEP (AEP) – This electric utility is not a Dividend Aristocrat; however, I am a shareholder and I was excited to see that they are expected to increase their dividend in the coming month!   AEP’s recent dividend increases have not been flashy.  On average over the last five years, the company has increased their dividend by 4.66%.   Let’s see if they have a surprise up their sleeve.
  • Aflac (AFL) – When it comes to Aflac, all I can ever think about are the commercials with the duck quacking “Aflac.”  All jokes aside, AFL is another Dividend Aristocrat that is expected to announce a dividend increase in the coming month.   AFL increased their dividend nearly 5% last year, which is consistent with their 5 year average growth rate of 5.44%.  Will AFL continue their streak of 5% dividend icnreases?  We shall see!
  • Cintas (CTAS) –  Here is what is interesting. CTAS only pays on annual dividend.  Probably one of the few companies that I have covered in this series that only pays an annual dividend. CTAS  may have a low dividend yield, but CTAS shareholders had to of loved their 26.6% dividend increase in 2016.  That will be hard to beat!

Do you own any of the companies on this listing?  What did you think about MCD’s dividend increase?  What companies are you expecting to increase their dividend during the month?  Do you closely track/build expectations for all of the companies in your portfolio prior to the dividend increase announcement?

-Bert

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18 thoughts on “Expected Dividend Increases – October 2017

  1. Love seeing dividend increases. More income for doing nothing. Too bad I don’t own any of these. Yet! Still have a long ways to go with expanding the holdings in the portfolio. Thanks for sharing.

    • Dividend Daze,

      Ah, who doesn’t love a good dividend. I love the “Yet” disclaimer. Don’t worry, you are going to get plenty of opportunities to own these great companies and benefit from these dividend increases as you continue to expand your holdings and grow your portfolio. What was the last dividend increase you received?

    • Man. I’m jealous you hold both of those companies! How much additional income did those dividends create for you? Nothing beats seeing your forward income increase without even lifting a finger.

      Take care,

      Bert

  2. Hi Guys, Thanks for putting this together. Nice work. A few thoughts on some of my favorites…
    MCD-Nice to see them up their game this year after a few lower than hoped for dividend increases in recent years
    LMT- An absolute beast. Bought them back in the days of military spending sequester and have never looked back
    MSFT-I’m okay with their increase. Consistent annual 8%+ raises would keep me satisfied
    PM-Currency issues, high payout ratio. Would like to see more here in coming years increases
    AEP-Thinking a 5% increase coming our way in October.
    VF-Should have purchased a long time ago, but unfortunately still on the sidelines.
    I love companies like these that work hard for us. Have a great weekend, Tom

    • Tom,

      I’m glad to do it each month. I love dividend increases, so it is a really fun exercise for me. Thanks for sharing your thoughts. I’m jealous that you picked up LMT back then. I’m sure you are just LOVING that purchase. AEP I think you are spot on. They haven’t given us a reason to believe otherwise. Pretty darn consistent if you ask me. I understand what you are saying with VF. I can’t figure out why I never really initiated a position.

      Bert

  3. Hello Bert,

    Looking forward to forward to October dividends. I’ve been breaking personal records all year with my portfolio as I’ve continued to invest new capital. I just pulled in over $800 in September crushing the prior record for the same month last year. I will have an update soon on my new blog and I will should have my September dividend summary up by end of next week.

    I have VFC on my perpetual watch list. Like many others, I wish I would have picked some up earlier this past year. As you are aware, it is getting more difficult to find great companies with any margin of safety whatsoever. I would love to be an owner of MSFT, but not willing to start a position at current valuation. With respect to MCD, I’ve just never been a fan of the food and rarely ever eat there unless I am desperate which is rare when you live by an In-N-Out 🙂

    Have a great weekend!

    -PIV

    • PIV,

      Welcome, welcome! You had me at personal records. Congrats on setting new records and seeing your portfolio soar to new highs. One of the best parts about investing and what we do is that we are constantly setting new records, pushing ourselves, and seeing how high our portfolio and dividend income can climb.

      For the record, I’ve had In-N-Out one time in my life and I just LOVED it. I can understand why you are not a fan of MCD when you have In-N-Out to feast on all of the time haha

      Thanks for stopping by.

      Bert

  4. Hi Bert,
    Those were some healthy increases from Sept. From your list, I’m expecting the Oct. increases from AFL and VFC. In addition, I’m expecting dividend increases from 5 others… ABBV, CCI, OHI, SBUX, and V. Quite the way to kick off Q4 if they all deliver. Looking for V to hopefully bring 15%+ and SBUX to exceed 20%. Maybe ABBV can crack 10%. The others will most likely be modest increases, but I’ll take them!

    • I’ll tell you what Engineering Dividends, if V and SBUX pull off those increases, a lot of us are going to be doing backflips haha 5 companies increasing their dividend for you in one month is just insane, you’ll have to let me know next month in the comment section just how much additional income these increases produced.

      Thanks for the comment.

      Bert

  5. Well, PM raised by 1 cent more than my expectations and MSFT raised by 1 cent less. It’s pretty tough to be disappointed in either one given the upward trend in the share prices. I also got a surprise 3% raise from MAIN, which is great since they pay me every month. Just like the above poster, in October I’m looking for raises from OHI, SBUX, and V.

    • I guess that averages out then, right? Meeting you expectations on a technicality. Congrats on the MAIN increase as well and I’m pumped as heck to see how much additional income these increases produce for you. Please report back next month.

      Bert

  6. DD.
    I love when the increases hit, its extra money without doing any extra work 🙂
    I hold both LMT and MSFT on my account as Core components and have been very happy with their performances. They are not a size position I would like them to be (would love for them to be bigger) but I will take what I have.

    • Very nice increases received D4S! Who cares about the size of the investment. Think about the effort you put in to receive those dividend increase. OH yeah, zero effort! That’s what I love about dividend increases and the power they can have on your portfolio/forward income.

      Bert

  7. Love dividend increases! I don’t own any of the ones you mentioned but I am planning to buy some MO (Phillip Morris) just waiting for my USD to be ready in my account 🙂

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