Expected Dividend Increases in March 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.
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.
But before I take a look at the month of March, just let us first look back if the companies of the previous month’s article did what I expected.
Archer-Daniels Midland (ADM)
On February 5th 2019, this Dividend Aristocrat announced a 4.5% increase of their monthly dividend rate, from $0.335 per share to $0.35 per share. This increase is inline with the increase of last year.
Table 1. Dividend increases of ADM.
I didn’t have to make a prediction, because ADM already announced its increase before I was able to publish my prediction. For more information about this increase see my post about this dividend increase of ADM.
On February 19th 2019, Walmart announced a 1.9% increase of their dividend. This increased marked their 46thconsecutive year of dividend increases.
Table 2. Dividend increases of WMT.
I was spot on with my prediction. For more information about this increase see my post about this dividend increase of WMT.
Coca Cola (KO)
This Dividend King has paid a quarterly dividend since 1920 and has increased dividends in each of the last 56 years. I love this kind of companies. On February 21th 2019, the board of Directors of The Coca-Cola Company approved the company’s 57th consecutive annual dividend increase, raising the quarterly dividend 5.4 percent, from $0.39 to $0.40
Table 3. Dividend increases of KO.
This increase was at the lower end of my prediction. So, actually I’m a little bit disappointed by the size of this increase. However Coca Cola also announced a new $150M share buy back program. I will dive in this one later. For more information about this increase see my post about this dividend increase of KO.
South32 Ltd. ADR (SOUHY)
On February 14Th 2019, South32 Ltd announced an 18.6% dividend increase of its half-year dividend. Besides this normal dividend, South32 Ltd ADR also pays a special dividend. This special dividend ($ 0.085) is lower than last year ($ 0.15).
In 2019 the special dividend and the normal dividend together are lower than these two combined in 2018. So I’m happy with a dividend increase but disappointed with the total amount of dividend. Some mixed feelings over here.For more information about this increase see my post about this dividend increase of SOUHY.
Bayer AG (BAY)
Bayer is a German Life Science Company with a more than 150-year history and core competencies in the areas of health care and agriculture. With their innovative products, they are contributing to finding solutions to some of the major challenges of our time.
On February 26th2019, the Supervisory Board of Bayer AG approved the Board of Management’s recommendation of a dividend payment for fiscal 2018 of 2.80 euros (2017: 2.80 euros) per share.
This one I didn’t see coming. I know Bayer AG had a though year in which their stock price has been declining. In 2018 they finalized the take over of Monsanto. And with this, they issued Rights to their shareholders.The Rights gave a (tradable) right to buy shares of Bayer for a lower price. After some calculations I have passed for this opportunity to buy some extra shares of Bayer. For more information about these Rights of Bayer AG, read my post about it.
Due to these Rights the total amount of shares has increased. And that is the main reason why Bayer AG doesn’t increase its dividend in 2019. Or as Werner Baumann, Chairman of the Board of Management said:
“ We want our stockholders to participate appropriately in Bayer’s success again this year and are targeting a record total dividend payment due to the increase in the number of shares. With 932.55 million shares entitled to the dividend, the total dividend payment would amount to 2.611 billion euros (2017: 2.402 billion euros), representing an increase of 8.7 percent.”
These were my dividend increase for the month of February, including one special dividend. All these nice increases are responsible that my annual dividend will increase with a total of € 4.81 ($ 5.46). My Vrijheid Fonds is working for me and gives me some extra money just by doing nothing! Again a great month for my Vrijheid Fonds.
Here are my predictions for the dividend increases in March 2019.
Realty Income (O)
This Dividend Aristocrat raises its dividend like clockwork. 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 April aren’t the biggest every year. So in my opinion Realty Income is not likely to reward investors with a massive bump in april of this year.
|2018 April||2017 April||2016 April||DGR-10yrs|
Table 4. 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: 5.14%
Prediction quarterly dividend: 0.2% – 0.3% increase to $0.2260-0.2262
Ahold Delhaize (AD.AS)
Ahold Delhaize is one of the world’s largest retail groups, operating strong local consumer brands in the United States and Europe. Their dividend policy is to target a payout ratio in the range of 40-50% of pro forma underlying income from continuing operations.
Table 5. Dividend increases of Ahold Delhaize.
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 in line with previous increase of around 10%.
Current Dividend Yield: 3.01%
Prediction quarterly dividend: 7.5% – 12.5% increase to $0.68-0.71
For two 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 and 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!
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.