Polliesdividend

Expected Dividend Increases in June 2018

Expected Dividend Increases in June 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 18 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 June, 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 this 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 😉 )

Here are my predictions for the dividend increases I expect in June:

 

Target (TGT)

Target is a dividend king, with more than 50 years of increases. It is every DGI’s dream. Target had a good year (2017), but has a decline in their annual dividend growth.

 

  2017 2016 DGR-10yrs
TGT 3.3% 7.1% 16.7%

Table 1. Dividend increases of TGT

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 little bit more than last years increase. Target has a good payout ratio, which gives room for an increase. Together with a good year (2017), but with the possible “Amazon effect” I think an increase of around 5% will be reasonable.

Current Dividend Yield: 3.42%

Prediction quarterly dividend: 4.0% – 6.0% increase to $0.64-0.66

 

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 announcements in June aren’t the biggest every year. So in my opinion Realty Income is not likely to reward investors with a massive bump in June of this year.

 

  June 2017 June 2016 DGR-10yrs
O 0.2% 0.3% 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: 5.21%

Prediction quarterly dividend: 0.2% – 0.3% increase to $0.2199-0.2202

 

Finally

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 June 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 this month 😉

Which dividend increase are you expecting?

I like to hear from you.

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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