Expected Dividend Increases - February 2022
If you're reading this then you're likely a fan of dividend growth investing. The wonderful thing about dividend growth investing is that you're focusing on companies that both pay and grow their dividend payments over time.
When implementing this strategy there's 3 ways that you can increase your future dividends: (1) investing more capital, i.e. savings, (2) reinvesting your dividends, and (3) dividend growth from the businesses you own.
Last year was a really solid year for dividend growth for my FI Portfolio with a weighted organic dividend growth rate coming in at 8.7%.
Today I'll be focusing on (3) dividend growth from the businesses you own. That's my favorite way to increase my future dividends because it requires absolutely ZERO work on my part after I own shares in a business. If I pick the business right before buying shares then the business, and its employees, work for me and allow me to reap the benefits of their hard work. Talk about passive income!
February is setting up to be a really active month for dividend increase announcements much like it was in 2021. Last year 10 of the companies that I own in my FI Portfolio announced dividend increases that combined to raise my own future dividends by $74.88.
This February I've already received 3 raises and expect a total of between 12 to 14 to be announced during the month.
Air Products & Chemicals (APD) $1.50 to $1.62 - 8.0% increase
Intercontinental Exchange (ICE) $0.33 to $0.38 - 15.2% increase
3M Company (MMM) $1.48 to $1.49 - 0.7% increase
Analog Devices (ADI) - Expected mid-month
My estimate is an increase to $0.74 - $0.77
British American Tobacco (BTI) - Expect mid-month
My estimate is an increase to $0.38 - $0.39
Digital Realty Trust (DLR) - Expected end of month
My estimate is an increase to $1.20 - $1.25
Coca-Cola (KO) - Expected mid-month
My estimate is an increase to $0.43 - $0.44
L3Harris (LHX) - Expected end of month
My estimate is an increase to $1.08 - $1.12
Pepsico (PEP) - Expected this week
My estimate is an increase to $1.12 - $1.16
Unilever (UL) - Expected mid-month
My estimate is an increase to €0.4350 - €0.4450
Walmart (WMT) - Expected mid-month
My estimate is an increase to $0.56 - $0.58
These two companies I'm not sure if they will announce raises during February as both of them already announced second raises during 2021 after their February increase. In EOG's case they also announced two special dividends (1) $1 per share and (2) $2 per share.
Deere & Company (DE)
EOG Resources (EOG)
While I'm sure I'll be way off on my estimates for some of these it's a fun exercise to go through every now and then just to see how close I'll get.
This year seems especially tough to gauge because there's a lot potentially in play. I know just like every year. With inflation running hot, although I expect that abate, and the Federal Reserve now hinting at a rapid rate hike cycle dividend growth could be all over the place.
In my opinion, 3M is the biggest unknown and the delay in the announcement does have me lowering my expectations even more. The problem is further potential lawsuits. While I think 3M the business will be just fine over time, it wouldn't surprise me if the dividend was not increased despite their 60+ year streak of raises. At least not with the February announcement.
You can find the dividend history, rolling dividend growth rates, and dividend yield theory charts for the companies mentioned as well as many others by checking out my Dividend Companies page.
Do you own any of these businesses? Do you ever forecast out what you expect the businesses you own to raise their dividend to?