Polliesdividend

Expected Dividend Increases in January 2020

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, let us first look back at last month dividend increases. I have forgotten to write a post about my expected dividend increases, but I’ve received some increases anyway 😉

 

Franklin Resources (BEN)

On December 12th BEN announced a 3.85% increase of their quarterly dividend rate, from $0.26 per share to $0.27 per share. For more information about this increase see my post about this dividend increase of BEN.

This increase was lower than the last three years, so I was a little bit disappointed. However, I had expected a lower increase because of their declining AUM.

  2019 2018 2017 2016 DGR-10yrs
BEN 3.85% 13% 15% 11.1% 14.0%

Table 1. Dividend increases of BEN

This increase is way lower than its 10 years average. Despite this low increase, I’m happy with these kinds of raises.

 

Realty Income (O)

As I have stated more often, Realty Income is raising its dividend like clockwork. On December 10th Realty Income announced a 0.2% increase of their monthly dividend rate, from $0.227 per share to $0.2275 per share. For more information about this increase see my post about this dividend increase of Realty Income.

 

  2019 December 2018 December 2017 December 2016 December DGR-10yrs
O 0.2% 0.2% 0.2% 0.2% 4.7%

Table 2. Dividend increases of O

It was exactly what I expected, so no surprise here.I like this “clockwork increases”!

 

AT&T (T)

On December 13th AT&T announced a 2.0% increase of their quarterly dividend rate, from $0.51 per share to $0.52 per share. For more information about this increase see my post about this dividend increase of AT&T.

 

  2019 2018 2017 2016 DGR-10yrs
AT&T 2.0% 2.0% 2.0% 2.1% 2.2%

Table 3. Dividend increases of AT&T

This increase came as no surprise. AT&T is working hard to reduce its debt, and with the forecasted free cashflow for 2020, AT&T will be able to keep raising its dividend in the near future.

 

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 € 10.27 ($ 11.22). My Vrijheid Fonds is working for me and gives me some extra money just by doing nothing!

 

January

Here are my predictions for the dividend increases in January 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.

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

Table 4. 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: 3.0% – 8.0% increase to $1.48-1.56

  

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.

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

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 year.

Current Dividend Yield: 3.71%
Prediction quarterly dividend: 1.0% – 3.5% increase to $0.23-0.2355

  

Consolidated Edison (ED)

ED is a dividend aristocrat, with 45 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?

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

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: 3.27%
Prediction quarterly dividend: 3.0% – 4.0% increase to $0.76 – $0.77

 

Chevron (CVX)

Chevron is one of the biggest oil companies in the world. The company is well-positioned for its 33rd year of dividend growth. Although the company payout ratio is around 70%, it has little debt on the books. I think the relatively high payout ratio is a bit concerning, but I still think we will see an increase announcement this month.

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

Table 7. Dividend increases of CVX.

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 year.

Current Dividend Yield: 3.95%
Prediction quarterly dividend: 4.0% – 8.0% increase to $1.24 – $1.29

  

Omega Healthcare Investments (OHI)

OHI didn’t touch their dividend in 2018 and most of 2019. In October 2019 Omega raised its dividend for the first time since January 2018. For some more information about this increase, please read my post Dividend increase Omega Healthcare Investors – 2019.

Hopefully they will pick up the rhythm of increases again.

  2019 2018 2017 DGR-10yrs
OHI 1.5% 0.0% 7.6% 9.3%

Table 8. 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 to be around 1.5%.

Current Dividend Yield: 3.95%
Prediction quarterly dividend: 1.0% – 2.0% increase to $0.677-0.683

 

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 9. 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: 2.04%
Prediction quarterly dividend: 3.0% – 5.0% increase to $0.26-0.27

 

Finally

All though I didn’t post my predictions for December 2019, I’m still love the increases I’ve received for my Vrijheid Fonds. 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’m predicting 6 dividend increases for January!!

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 January 2020

  1. Europeans DGI

    Nice post!

    I own several of them and I am particularly interested in MMM as I just entered that position back in Q4. I did miss out on AT&T in the beginning of the year. I underestimate the power of that company due to their debt load and earnings growth, because in this market Ito was a great value play last year. Having said that, I continue to learn and these kind of posts contribute to that.

    Thanks Pollie!

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