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Expected Dividend Increases in December 2018

Expected Dividend Increases in December 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 24 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 December, just let us first look back if the companies of the previous month’s article did what I expected.

Well I can be very short about the dividend increases in last month. I was spot on with my expectations and predictions; I didn’t receive a single dividend increase. It feels nice to be 100% correct (maybe I should go to the casino 😉 )

 

December

Here are my predictions for the dividend increases in December 2018.

 

Franklin Resources (BEN)

Franklin Resources is a dividend king, with 38 years of dividend increases. I think it is every DGI’s dream. Franklin Resources has already paid a special dividend this year. Although the AUM is not growing, BEN has a good year.

  2017 2016 DGR-10yrs
BEN 15% 11.1% 14.9%

Table 1. Dividend increases of BEN

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 10 years DGR. BEN has a low payout ratio, which gives room for an increase. I think an increase of around 15% will be reasonable.

Current Dividend Yield: 2.83%
Prediction quarterly dividend: 10.0% – 15.0% increase to $1.01-1.06

  

Realty Income (O)

This fresh Dividend Aristocrat has 25 years of uninterrupted dividend increases. Realty income, the monthly dividend company, rewards its investors with a couple of increases every year. From my experiences it is fair to say that the increase announcement in December isn’t the biggest every year.

  December 2017 December 2016 DGR-10yrs
O 0.2% 0.2% 4.4%

Table 2. Dividend increases of O

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 as the last couple of years.

Current Dividend Yield: 4.00%
Prediction quarterly dividend: 0.2% – 0.3% increase to $0.2209-0.2212

  

AT&T (T)

AT&T is a dividend king, with 34 years of dividend increases. They completed their acquisition of Time Warner. This is good news, however their high debt/equity ratio is still a concern.

  2017 2016 DGR-10yrs
AT&T 2.0% 2.1% 3.3%

Table 3. Dividend increases of AT&T

I looked on the Internet and in their latest company financial information. On the basis of my own little research together with their high payout ratio, I expect the increase to be around the 2% mark (same as the last couple of years).

Current Dividend Yield: 6.55%
Prediction quarterly dividend: 1.5% – 2.0% increase to $0.5075 – $0.51

 

Finally

For three excellent companies of my Vrijheid Fonds I predict an increase of their dividend. 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 December 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.

 

 

 

 

 

 

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2 thoughts on “Expected Dividend Increases in December 2018

  1. DivvyDad

    I’ve got all three of these and I am looking forward to see what BEN announces. I just saw that their latest forecast has a slight uptick in AUM, which would be a nice change of pace from the recent declines.

    Hope you keep that streak of 100% success going this month!

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