Expected Dividend Increases in April 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. There have been quite a few dividend increases announced so far in 2018 for my Vrijheid Fonds. The counter is now on 13 announcements already!! It definitely has been a fun time to be a dividend growth investor. In this post I try to summarize as many companies that are expected to announce a dividend increase in the coming month.
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.
The dividenddiplomats said it also, and I couldn’t have said it better “it is something to look forward to and there is a change it may impact someone’s investment decision!”
Now that March has ended and the busiest time of year for dividend increases is in the rear-view mirror, we should see a slowdown in announcements as the annual shareholder meetings begin. But (there is always a but 😉 ) April will be an exciting month because some big names in my Vrijheid Fondsare set to announce an increase.
Here are my predictions for the dividend increases I expect in April:
Johnson & Johnson (JNJ)
Johnson & Johnson is a dividend king, every DGI’s dream. They have an astonishing 55-year record of progressively increasing dividends! JNJ had a great year (2017) and this will result in another nice year of dividend growth.
Table 1. Dividend increases of JNJ
I 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 just below the company’s 10-year dividend growth average of 7.4%
Current Dividend Yield: 2.5%
Prediction: 6.0% – 7.0% increase to $3.56-3.60
Procter & Gamble (PG)
Another Dividend King with 61 years of uninterrupted dividend increases. Procter & Gamble is the S&P Dividend Aristocrat with the longest dividend growth streak. P&G has paid a dividend in each of the past 127 fiscal years. In my opinion Procter & Gamble is not likely to reward investors with a massive bump in its payout this year.
Table 2. Dividend increases of PG
I 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 the company’s 10-year dividend growth average of 2.7%
Current Dividend Yield: 3.48%
Prediction: 2.5% – 3.5% increase to $2.83-2.86
Southern Company (SO)
This power company provides electricity to more than 9 million customers throughout the southeastern United States. Southern almost certainly will increase its payout for the 18th consecutive year sometime in the middle of April, but it probably won’t be much. Their current payout ratio of 77%, so there isn’t a whole lot of room for Southern Company’s to boost the dividend.
Table 3. Dividend increases of SO
I 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 below the company’s 10-year dividend growth average of 3.7%
Current Dividend Yield: 5.19%
Prediction: 3.0% – 3.5% increase to $2.39-2.40
Unilever is one of the worlds largest consumer goods company. It has been under fire in 2017 from investors who tried to buy the company. As a result, the management has announced new plans for the company. These plans will, in their eyes, generate more shareholder value. Unilever announced last month that they are going to sell the margarine department. In my opinion Unilever will announce a new dividend increase in the coming month.
Table 3. Dividend increases of UN.AS
I 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 way above the company’s 5-year dividend growth average of 8.9%
Current Dividend Yield: 2.99%
Prediction: 10% – 15% increase to €1.58 – €1.65
This is the first time I have written about expected dividend increases. I’m excited how my predictions will turn out. Next month I will write a review and look back at my predictions.
I can’t wait for the month April and the dividend increases that will be announced. I’m always excited about new dividend increases.
Which dividend increase are you expecting?
I like to hear from you.
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.