Polliesdividend

Expected Dividend Increases in February 2020

Expected Dividend Increases in February for my Vrijheid Fonds.

It is this time of the month again to predict the dividend raises for my Vrijheid Fonds. If you have visited Polliesdividend more often, you know that I track the dividend increases of the companies in myVrijheid Fonds. In this post I try to summarize as many companies that are expected to announce a dividend increase in this month.

 

polliesdividend, increase, dividend

 

Why you ask? I find it fun to track the dividend increases because I like companies that regularly increase their dividend. I believe that companies can only increase their dividends regularly if they grow earnings sufficiently. And it is the most outward sign by management as to how business is going. These companies show confidence in the potential growth of future earnings. And that are the kind of companies I like in my Vrijheid Fonds.

 

Last month

But before I take a look at the month of February, just let us first look back if the companies of the previous month’s article did what I expected.

 

3M Company (MMM)

3M didn’t announce a dividend increase this month. They only published their fourth-quarter and Full-year 2019 results on January 28. I’ve read their report and I couldn’t find any hint of a dividend raise. Hopefully they will do it in February. 3M has a great track record of dividend raises. 3M ranks among the stocks with the longest streak of making annual dividend increases year in and year out.

So, I was completely wrong with my prediction. Better luck next month.

 

Realty Income (O)

On January 14th Realty Income announced a 2.20% increase of their monthly dividend rate, from $0.2275 per share to $0.2325 per share. For more information about this increase see my post about this dividend increase of Realty Income.

 

2020 January 2019 January 2018 January 2017 January DGR-10yrs
O 2.20% 2.04% 3.1% 4.0% 4.7%

Table 1. Dividend increases of O

This increase was smack in the middle of my prediction. Another nice increase from The Monthly Dividend Company. I’m happy with it.

 

Consolidated Edison (ED)

On January 16th ConEdison announced a 3.38% increase of their quarterly dividend. The dividend is raised from $0.74 to $0.765. For more information about this increase see my post about this Dividend increase of Consolidated Edison.

 

2020 2019 2018 2017 DGR-10yrs
ED 3.38% 3.5% 3.6% 3.0% 2.3%

Table 2. Dividend increases of ED.

I was spot on with my prediction.

 

Chevron (CVX)

On January 29th Chevron announced 8.4% increase of their quarterly dividend. The dividend is raised from $1.19 to $1.20. For more information about this increase see my post about this dividend increase of Chevron.

 

2020 2019 2018 2017 DGR-10yrs
CVX 8.4% 6.2% 3.7% 0.70% 6.0%

Table 3. Dividend increases of CVX.

This increase is higher than my prediction, but hey who is complaining 😆.

 

Aflac (AFL)

Aflac didn’t publish their year results yet. Aflac has released a press release that their Resulted will be published on February 4th.

Also, on this prediction I was wrong. A new chance next month!

 

Omega Healthcare Investments (OHI)

Las month I wrote that I was hoping that OHI would pick up the rhythm of increases again. Unfortunate this was not the case ☹️.

 

Archer-Daniels Midland (ADM)

I didn’t foresee this increase for the month of January. I was expecting this increase for February. On January 30th ADM announced a 2.85% increase of their dividend. The dividend is raised from $0.35 to $0.36. For more information about this increase see my post about this dividend increase of ADM.

 

2020 2019 2018 2017 DGR-10yrs
ADM 4.7% 4.5% 4.7% 6.7% 9.6%

Table 4. Dividend increases of ADM.

As I already wrote, I wasn’t expecting this increase announcement in January. But I’m very happy with it!

 

In conclusion I can say that the for the companies that announced a dividend increase, I was pretty accurate. Three companies haven’t announced an increase yet, hopefully they will do this in February. And one company announced its raise earlier than I was expecting, but hey no complains here.

 

February

Here are my predictions for the dividend increases in February 2020.

 

3M Company (MMM)

3M is a company I love. I’ve been averaging down on 3M in 2019. And what is not to love about this great company. 3M is a dividend king, with more than 60 years of dividend increases!!! Yes, you have read it right; this company has raised its dividend for more than 60 consecutive years. This is every DGI’s dream. If I take a look at the numbers, I think 3M had a reasonable year. This together with a payout ratio of around 65%, gives room for a nice dividend increase.

 

2019 2018 2017 2016 DGR-10yrs
MMM 5.9% 16% 15.7% 5.9% 10.9%

Table 5. Dividend increases of MMM

I’ve looked on the Internet and in their latest company financial information. On the basis of my own little research I expect the increase to be around last year’s increase. MMM has a good payout ratio, which still gives a little bit room for an increase. I think an increase of around 5% will be reasonable.

Current Dividend Yield: 3.26%
Prediction quarterly dividend: 2.0% – 6.0% increase to $1.47-1.53

 

Walmart (WMT)

Walmart is a dividend aristocrat that announced an increase in their dividend every February. Since 2014, the company has increased their quarterly dividend by only $.01/share.

 

2019 2018 2017 DGR-10yrs
WMT 1.9% 2.0% 2.0% 9.4%

Table 6. Dividend increases of WMT.

 I looked on the Internet and in their latest company financial information. On the basis of my own little research I expect the much-expected increase to be around 2%.

Current Dividend Yield: 1.83%
Prediction quarterly dividend: 1.5% – 2.5% increase to $0.54-0.56

 

Coca Cola (KO)

Coca Cola is the dividend aristocrat with probably the most famous brand. KO has been raising its dividend for 57 years straight. KO is a great dividend aristocrat which has a very high payout ratio. Although the best years are over for this dividend aristocrats, I still expect a dividend increase for this year that beats inflation.

 

2019 2018 2017 DGR-10yrs
KO 2.6% 5.4% 5.7% 7.5%

Table 7. Dividend increases of KO.

 I looked on the Internet and in their latest company financial information. On the basis of my own little research I expect the much-expected increase to be around 2%.

Current Dividend Yield: 2.81%
Prediction quarterly dividend: 1.0% – 3.0% increase to $0.405-0.41

 

Aflac (AFL)

Nearly 70% of AFLAC revenue comes from Japan. The remaining revenue comes from the US. This means that the company’s performance is driven to a large extent by Japanese economic conditions and by the Dollar – Yen exchange rate.

 

2019 2018 2017 DGR-10yrs
AFL 3.8% 19.54% 4.82% 6.8%

Table 8. Dividend increases of AFL.

I looked on the Internet and in their latest company financial information. On the basis of my own little research I expect the much-expected increase to be around 4%.

Current Dividend Yield: 2.06%
Prediction quarterly dividend: 3.0% – 5.0% increase to $0.26-0.27

 

Finally

I wasn’t very accurate with all my prediction last month. Hopefully February will be better. Next month I will write a review and look back at my predictions. I can’t wait for the month February and the dividend increases that will be announced. I’m always excited about new dividend increases. I hope that I’m as right as my predictions for last month 😉

 

How many of these companies do you own? Which other increases do you expect? Can’t wait to read your responses. Happy investing everyone!

 

Cheers,

Pollie

 

Disclaimer: I’m not a registered investment adviser, investment professional, brokerage firm or investment company. Readers are advised that information on the website is issued solely for information purposes and not to be construed as an offer or recommendation to buy, hold, or sell any securities. All information, opinions, and analyses included are based on sources believed to be reliable, but no representation or warranty is made concerning accuracy, correctness, timeliness, or appropriateness. Please consult with an investment professional before investing any of your money.

 

 

 

 

 

 

Please follow and like us:
error0
fb-share-icon0
Tweet 1k

2 thoughts on “Expected Dividend Increases in February 2020

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.