Two raises in fact! No it wasn't from my employer but rather these raises came from two of my employees. Both of them have been working hard this past year and decided to shoot me a little bit more cash every quarter. That's dividend growth investing in action and eventually with more increases and continued investment will allow me to consider early retirement.
Yesterday, Phillip Morris (PM) increased the quarterly dividend by 6.4% from $0.94 to $1.00 per share. Since I own 62 shares of PM that's an extra $3.75 coming my way every quarter or $15.00 extra every year. This increase marks the sixth annual dividend increase by PM and the current yield is now 4.75%.
Good news continued when YUM Brands (YUM) announced an increase as well. They raised the quarterly dividend 10.8% from $0.37 to $0.41. Since I own 20 shares of YUM they'll be paying me an extra $0.80 every quarter or $3.22 every year. This is YUM Brands' tenth consecutive annual increase and what's really impressive is that every increase has been double digit. The current yield is now 2.26%.
That's the beauty of dividend growth investing. The companies do the work and if they generate more profits then they tend to increase the payment to the owners. Find the companies with the right business model and culture to increase the dividend every year and invest your capital there. So far this year I've received increases from 34 out of 42 holdings in my FI Portfolio and expect another 3 increases later this month.
My forward 12-month dividends are now at $5,070.70 and I'm officially past my $5,000 goal by the end of the year. I'm still $430 short of my new $5,500 goal but there's still plenty of time to get there.