Polliesdividend

Expected Dividend Increases in August 2018

Expected Dividend Increases in August 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 20 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.

 

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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 August, just let us first look back if the companies of the previous month’s article did what I expected.

I can tell you one thing, I was completely right about the increases my Vrijheid Fonds would expect in July 2018. Spot on were my expectations and predictions; I didn’t receive a single dividend increase. It feels nice to be 100% correct. And how says that the markets can not be predicted 😉

As expected, Omega Healthcare Investors didn’t touch their dividend. They still have their dividend freeze 🙁 . For some more information about this dividend freeze and what my actions were after the announcement, please read my post: What to do with Omega Healthcare Investors?

Here are my predictions for the dividend increases I expect in August 2018.

 

South32 Ltd.ADR (SOUHY)

In 2016 South32 started paying dividend. In May 2017 they changed their dividend payment schedule from annual to semi-annual. And last year they announced a dividend increase in august, and because 2018 isn’t a bad year for raw materials; I expect a new increase of their semi-annual dividend. And why you ask? Well if you take a look at their latest quarterly report, we see all green numbers. And that’s a good sign.

South32 American Depositary Receipts (ADRs) each represent five fully paid ordinary shares in South32. And in this post I give the dividend for South32 Ltd. ADR.

  February 2018 August 2017 DGR-5yrs
Souhy 14.06% 177.8% 0%

Table 1. Dividend increases of Souhy

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 a bit lower than last year August.

Current Dividend Yield: 5.27%

Prediction quarterly dividend: 50% – 100% increase to $ 0.55-0.73

 

BHP Billiton PLC – ADR (BBL)

After slashing their dividend in 2016, BBL started raising their dividend again in 2017. Since then we saw three nice increases already. And as I said with Souhy, 2018 isn’t a bad year for raw materials; and therefore I expect a new increase of their semi-annual dividend.

BHP Billiton PLC – ADR (BBL)each represent two fully paid ordinary shares in BHP. And in this post I give the dividend for BHP Billiton PLC – ADR (BBL).

  February 2018 August 2017 DGR-5yrs
BBL 28.0% 7.50% -9.1%

Table 2. Dividend increases of BBL

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 same increase a last years August.

Current Dividend Yield: 4.33%

Prediction quarterly dividend: 5% – 10% increase to $ 1.15-1.21

 

Finally

I’m excited how my predictions will turn out. Next month I will write a review and look back at my predictions.

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.

 

 

 

 

 

 

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