Polliesdividend

Expected Dividend Increases in January 2019

Expected Dividend Increases in January 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.

 

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

 

Franklin Resources (BEN)

On December 11th BEN announced a 13% increase of their quarterly dividend rate, from $0.23 per share to $0.26 per share. For more information about this increase see my post about this dividend increase of BEN.

This increase is higher than the last two years and in the top range of my estimate. I like these kind of raises.

  2018 2017 2016 DGR-10yrs
BEN 13% 15% 11.1% 14.9%

Table 1. Dividend increases of BEN

This increase is a tit lower than its 10 years average. It was right in the middle of mine estimate. I like these kinds of raises.

 

Realty Income (O)

As I have said in an earlier post, Realty income is raising its dividend like clockwork. On December 11th Realty Income announced a 0.2% increase of their monthly dividend rate, from $0.2205 per share to $0.221 per share. For more information about this increase see my post about this dividend increase of Realty Income.

  2018 – 12 2017 – 12 2016 – 12 DGR-10yrs
O 0.2% 0.2% 0.2% 4.4%

Table 2. Dividend increases of O

I was spot on with my prediction about this increase.

 

AT&T (T)

On December 13th AT&T announced a 2.0% increase of their quarterly dividend rate, from $0.50 per share to $0.51 per share. For more information about this increase see my post about this dividend increase of AT&T.

  2018 2017 2016 DGR-10yrs
AT&T 2.0% 2.0% 2.1% 3.3%

Table 3. Dividend increases of AT&T.

And again, I was spot on with my prediction about this increase. 🙂

These were my dividend increase for the month of December. All these nice increases are responsible that my annual dividend will increase with a total of € 13.10 ($ 15.00). My Vrijheid Fonds is working for me and gives me some extra money just by doing nothing!

For the month December I was spot on with my expectations and predictions and I’m proud of it.

 

January

Here are my predictions for the dividend increases in January 2019.

 

3M Company (MMM)

3M is a dividend king, with 60 years of dividend increases!!! Yes, you have read it right; this company has raised its dividend 60 consecutive years. This is every DGI’s dream. If I take a look at the numbers, I think 3M had a good year. This together with a payout ratio of around 60%, gives room for a nice dividend increase.

  2017 2016 DGR-10yrs
MMM 15.7% 5.9% 10.4%

Table 4. Dividend increases of MMM

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. MMM has a good payout ratio, which gives room for this increase. I think an increase of around 10% will be reasonable.

Current Dividend Yield: 2.85%
Prediction quarterly dividend: 8.0% – 12.0% increase to $1.47-1.52

 

Realty Income (O)

This is one of my favorite Dividend Aristocrats. It 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, their increase announcement in January is always the biggest every year.

  January 2018 January 2017 DGR-10yrs
O 3.1% 4.0% 4.4%

Table 5. 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: 4.26%
Prediction quarterly dividend: 2.5% – 3.5% increase to $0.226-0.229

  

Consolidated Edison (ED)

ED is a dividend aristocrat, with 44 years of dividend increases.The company has been around forever and increased their dividend for a long-time. ED is a major player in a highly regulated utility sector. What is not to like?

  2018 2017 DGR-10yrs
ED 3.6% 3.0% 1.7%

Table 6. Dividend increases of ED.

I looked on the Internet and in their latest company financial information. On the basis of my own little research together with their payout ratio, I expect the increase to be around the 3% mark.

Current Dividend Yield: 3.79%
Prediction quarterly dividend: 2.5% – 3.5% increase to $0.73 – $0.74

  

Omega Healthcare Investments (OHI)

OHI didn’t touch their dividend in 2018. They had a 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?

Now 2018 is over and OHI had time to sort things out. Maybe they will reinstate their dividend increases this year.

  2018 2017 DGR-10yrs
OHI 0.0% 7.6% 9.3%

Table 7. Dividend increases of OHI

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 in the month January to be around 1.5%.

Current Dividend Yield: 7.51%
Prediction quarterly dividend: 0.5% – 2.0% increase to $0.663-0.673

 

Finally

For four 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 January 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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3 thoughts on “Expected Dividend Increases in January 2019

  1. DivvyDad

    I really liked that raise from BEN, and I am hoping for a double-digit increase from MMM as well but would be thrilled with high single-digits too. I’m looking forward to raises from a few other holdings as well, including KMB, CMS, and MDP.

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