We're within the thick of winter right here. Snow flurries are flying and temperatures are dropping. The right time to take a seat inside with a heat cup of espresso, weblog, and study dividend-investing Lanny simply revealed an article explaining how dividends are taxed and the tax advantages of this passive earnings stream. Decrease tax charges are simply another excuse why we love dividend investing. Another excuse we love this investing technique is due to the dividend will increase. We monitor every dividend improve like a hawk; we have fun the sturdy will increase and shake our heads after a disappointing improve. That is why every month, we publish an article solely specializing in the anticipated dividend will increase within the coming month. Listed here are the anticipated dividend will increase in February.
Earlier than we soar into the dividend will increase, we wished to briefly clarify how we construct our dividend earnings streams. We construct this earnings stream by discovering undervalued dividend progress shares which have a historical past of INCREASING their dividend utilizing the three easy metrics of our Dividend Inventory Screener. We're each constructing the foundations we want, at some point and one step at a time. See the foundations right here:
- Our Dividend Stock Portfolios displaying every particular person holding and the dividend earnings every produces.
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Our Dividend Income web page displaying every month-to-month dividend earnings complete.
Precise Dividend Will increase In January 2020
Let's begin this text off by reviewing the precise dividend will increase from final month. We'd as properly see how the “anticipated” corporations carried out this month, proper? We forecasted 5 dividend will increase in January. Right here have been the outcomes:
Firm #1: Consolidated Edison (NYSE:ED) – I described Consolidated Edison as “outdated dependable” final month. As a result of darn is that firm in step with its dividend will increase. It appears just like the Dividend Aristocrat lived as much as its fame as soon as once more in 2020. The corporate introduced a three.four% improve in its quarterly dividend. What's its five-year common dividend progress price, it's possible you'll ask? three.27%. Constant, constant, constant. Consistency and progress historical past are two of the the reason why Consolidated Edison earned a spot on our Prime 5 Basis Shares for a dividend investor's portfolio.
Firm #2: Kimberly-Clark Company (NYSE:KMB) – I ought to have identified the dividend improve was not going to be nice after I regarded on the firm's dividend payout ratio final month. Whereas I used to be not anticipating a 10% dividend improve, I used to be anticipating a little bit greater than a three.eight% dividend improve primarily based on the corporate's sturdy 2019. That is in keeping with its five-year common dividend progress price (four.1%). So at the least the corporate is constant, proper?
Firm #three: Air Merchandise and Chemical compounds, Inc. (NYSE:APD) – APD will take the cake for the biggest dividend improve final month. APD introduced a 15.5% dividend improve. That is largest than ED, KMB, NSC and INTC‘s dividend will increase mixed! An enormous congratulations is in line for APD shareholders. Perhaps it's time to lastly add this Aristocrat to my subsequent watch listing.
Firm #four – Norfolk Southern Company – This was sadly essentially the most disappointing announcement, or lack of announcement, of the month. I used to be ready the complete month for a pleasant improve. As a substitute, administration threw a curve ball at us and introduced that NSC's dividend will stay the identical. This has me very curious. Why did administration break its semi-annual dividend improve schedule.
Firm #5: Intel Company – Outdoors of APD, the dividend will increase in January have been fairly underwhelming. That features INTC, which introduced a four.7% dividend improve. Nothing spectacular and positively under what I used to be anticipating. Curiously, its inventory value soared after the earnings launch. So the common dividend improve did not appear to maneuver investor sentiment.
Bonus Firm #6: Chevron Company (NYSE:CVX) – This was a pleasant shock on the finish of the month. Chevron introduced a powerful eight.four% dividend improve. This was nice as a result of turbulence within the oil sector during the last 12 months. With the costs of oil shares slumping during the last 12 months, I used to be not anticipating a dividend improve like this. Perhaps I am going to add CVX to my subsequent watch listing after this dividend improve!
Anticipated Dividend Will increase in February 2020
I am a little bit down and disillusioned after reviewing the dividend will increase in January. Nevertheless, now that we're looking forward to February, I need to say I am excited for the sheer quantity of dividend will increase that's anticipated to happen. Listed here are the anticipated dividend will increase in February:
Firm #1: Archer-Daniels Midland (NYSE:ADM) – ADM truly jumped the gun and introduced its dividend improve in January, not February. Fascinating that the corporate determined to fall off schedule right here! Sadly, this wasn't an thrilling dividend improve. ADM solely elevated its dividend 2.eight%. I assume after the robust 12 months final 12 months as a result of commerce conflict, I should not be shocked with a small dividend improve.
Firm #2: Coca-Cola Co. (NYSE:KO) – Subsequent up, a Dividend Aristocrat. Each soda giants are anticipated to announce their dividend improve this month. It is becoming, particularly given how the businesses can even battle for the very best Tremendous Bowl industrial this month. Let's additionally take that battle off of the gridiron and put it on every firm's investor relation pages! KO's dividend improve final 12 months was dismal, so I am trying to see if it may well get well and ship shareholders higher information in 2020. 2.5% will not be that top of a hurdle to cross.
Firm #three: Real Components Firm (NYSE:GPC) – Real Components Firm is a sneaky Dividend Aristocrat. I say that it's sneaky as a result of the corporate operates in a non-sexy business like different Aristocrats on this listing. However hey, this firm has elevated its dividend for 63 consecutive years. The corporate has a yield over three% and is down over 7% right now. Hmm, GPC might have discovered its manner onto my subsequent dividend inventory watch listing.
Firm #four: T. Rowe Value Group (NASDAQ:TROW) – TROW has been one in all my best-performing investments….ever. The corporate has zero debt and has taken off during the last 5 years. Fortunately, for dividend buyers, the corporate has additionally elevated its dividend in correlation with the inventory value. Its five-year common dividend progress price is a staggering 24%. You learn that proper….24%! Whereas I am not anticipating that this 12 months, I'm anticipating one other sturdy, double-digit dividend improve once more in 2020.
Firm #5: Walmart (NYSE:WMT) – Walmart subscribes to the AT&T (NYSE:T) plan for growing its dividend. Persistently announce a $.01 per share improve in its quarterly dividend. The one distinction is that Walmart's dividend yield is nowhere close to AT&T's yield! There aren't any indications that the corporate will change course and announce a bigger improve in 2020. However man would that be a pleasing shock and a powerful increase of confidence for shareholders.
Firm #6: PepsiCo (NASDAQ:PEP) – Pepsi's dividend will increase are all the time attention-grabbing. The corporate declares its annual dividend improve on the identical time it publishes its full-year earnings outcomes. What's humorous is that the dividend improve, introduced in February, will not be acquired till June! I am able to be shocked right here by Pepsi, which solely elevated its dividend by three% final 12 months.
Firm #7: The Wendy's Firm (NASDAQ:WEN) – As a client, I like consuming at Wendy's. There may be simply one thing about getting a jr. bacon cheeseburger and fries. Man, now I'm making myself hungry writing this text! Wendy's has been on a dividend progress tear over the previous couple of years. The corporate has not too long ago entered the quick meals breakfast wars. The breakfast discipline is saturated. Wendy's has to compete with McDonald's (NYSE:MCD), Dunkin Donuts (NASDAQ:DNKN), Starbucks (NASDAQ:SBUX), and others on this entrance. It will likely be attention-grabbing to see if this determination pays off in the long term.
Firm #eight: United Parcel Providers (NYSE:UPS) – I grew my place in UPS aggressively and am very blissful and cozy with the quantity of the transport firm I personal. Its competitor, FedEx (NYSE:FDX), fell after slicing steering and reporting on the influence Amazon (NASDAQ:AMZN) has had on its enterprise. Will this trickle over to UPS? That continues to be to be seen. Nevertheless, within the brief time period, I'm anticipating a stable dividend improve from UPS. Hopefully it may well ship us a pleasant dividend improve (sorry for the unhealthy joke there).
Firm #9: House Depot, Inc. (NYSE:HD) – House Depot had a MONSTER 32% improve in its dividend final 12 months. I am not anticipating something near that in 2019. In reality, I am anticipating its dividend to be nearer to 10%. However I would fortunately cut up the distinction right here, and I am certain shareholders would take that deal on a regular basis!
Firm #10: 3M Firm (NYSE:MMM) – That is the final Dividend Aristocrat on the listing for the month. It's one in all my favourite corporations too; therefore, it why I take into account it a inventory that I'll all the time purchase. The corporate has elevated its dividend for over 60 years. This one, like so many, will likely be fascinating. It has been a roller-coaster journey for 3M currently. Its value fell after this final earnings launch. The corporate is slicing jobs, it missed income, and did not have the very best outlook. What will likely be curious although is the dividend improve. I can not think about will probably be massive given this launch and the financial atmosphere. However we are going to discover out.
Abstract
This month goes to be insane, because the dividend will increase are going to be coming at us quick and livid. Hopefully, February proves to be a stronger month than January. It will likely be very, very irritating if we face one other 12 months of weak dividend progress. However let's stay optimistic and give attention to the optimistic. Sturdy dividend will increase will are available February!
What dividend will increase are you anticipating this month? What number of names on this listing do you personal? Had been you annoyed by the poor dividend will increase in January? What's your favourite a part of dividend investing?
Editor's Observe: The abstract bullets for this text have been chosen by In search of Alpha editors.
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