Expected Dividend Increases in May 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 2020 for my Vrijheid Fonds. 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.
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.
Now that April has ended and the busiest time of year for dividend increases is in the rear-view mirror, we should see a slowdown in announcements as the annual shareholder meetings begin. In April we saw a rise in the stock market again. Will this only be hiccup just before a further decline, or….? Nobody knows, we will just have to wait and see.
But before I take a look at the month of May, just let us first look back if the companies of the previous month’s article did what I expected.
Johnson & Johnson (JNJ)
On April 14th JNJ announced a 6.3% increase of their quarterly dividend rate, from $0.95 per share to $1.01 per share. For more information about this increase see my post about this dividend increase of JNJ. Although this increase is a little bit lower than their 10-year average DGR, I still love these kinds of increase. This increase was a little bit higher than I expected, but hey who is complaining 😉 .
|JNJ||6.3 %||5.9 %||7.1 %||5.0 %||6.7%||7.0%|
Table 1. Dividend increases of JNJ
Procter & Gamble (PG)
Another Dividend King with now 64 years of uninterrupted dividend increases! On April 14th PG announced a 6.0% increase of their quarterly dividend rate, from $0.7459 per share to $0.7907 per share. For more information about this increase see my post about this dividend increase of PG. This increase is higher than last year’s increase, and higher than its 10 years DGR. This is really great! This increase was also higher than I expected. I hope I will be wrong like this more often 😅.
|PG||6.0 %||4.0 %||4.0 %||3.0 %||1.0%||5.6%|
Table 2. Dividend increases of PG
Southern Company (SO)
Southern has, as expected, increased its dividend for the 19th consecutive year. On April 20th SO announced a 3.23% increase of their quarterly dividend rate, from $0.62 per share to $0.64 per share. For more information about this increase see my post about this dividend increase of SO. This increase is in line with their previous increases and I was spot on with my prediction (well done Pollie – *Pat on the back*) 😉
Table 3. Dividend increases of SO
Unilever is one of the world’s largest consumer goods company. In their Trading statement first quarter, I saw that Unilever’s revenue growth is suffering from the corona crisis. Due to the fact that the Corona disease has such an impact on Unilever’s figures, the board of director’s decided to maintain their quarterly dividend is at € 0.4104. For more information about Unilever’s Trading statement first quarter 2020 and the influence of the Corona disease, just read my post Unilever is hit by COVID-19.
So, I was wrong with my prediction, but I believe that their dividend will undoubtedly be increased again later in the year. I think that the Board of Directors will prevent the dividend-increase track record to be broken. With just a very small raise, the record will not be broke. So, I think, we shouldn’t be surprised if a 1% increase will be announced later this year
These were my dividend increase for the month of April. All these nice increases are responsible that my annual dividend will increase with a total of €12.62. What a great number, and this just by doing nothing!
Here are my predictions for the dividend increases I expect in May:
Okay, I can be short about this one; I don’t expect any announcements of dividend increase in May for the companies of my Vrijheid Fonds. Let’s hope that I will receive some increases in June.
Which dividend increase are you expecting for May? And are you happy with your increases in April? Can’t wait to read your responses. Happy investing everyone!
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