Polliesdividend

Expected Dividend Increases in May 2020

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.

 

polliesdividend, increase, dividend

 

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.

 

Last month

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 😉 .

2019 2019 2018 2017 2016 DGR-10yrs
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 😅.

2020 2019 2018 2017 2016 DGR-10yrs
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*) 😉

2020 2019 2018 2017 2016 DGR-10yrs
SO 3.23% 3.3% 3.4% 3.5% 3.25 3.6%

Table 3. Dividend increases of SO

 

Unilever (UN.AS)

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!

 

Finally

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!

 

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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7 thoughts on “Expected Dividend Increases in May 2020

  1. Get Rich Brothers

    Hey Pollie,

    The JNJ and PG dividend increases were both higher than we might have expected giving the operating climate that we are in. Great for dividend investors to see those signs of strength.
    As I am writing this, DIS has just announced that it will be suspending its 1H dividend altogether, so not only are dividend increases under siege, but the flat payments themselves.
    Let’s hope those brighter days come sooner rather then later. Interesting times, indeed.

    Take care,
    Ryan

  2. DutchFI

    Hi Pollie,

    did you ever look into ‘Beter beleggen dan de bank’? I just got an email about a webinar about ‘hoog dividend beleggen’.

    1. Polliesdividend Post author

      I haven’t heard of this webinar. I just looked it up, and wasn’t impressed by it. I heard alarm bells.

  3. DutchFI

    Couldn’t agree more. If seems to be too good to be true, it probable is! To me it seems to be a commercial business model.

    I think the webinar is only for paid members as well.

  4. Uwe

    Hello Pollie,
    I’m a german so my english is not the best …. this is one of the first comments on a website outside from Germany ….. I am also a Dividend investor and wish you all the best … great blog … I come back …
    Thanks a lot for the inspiration
    Yours sincerelly
    Uwe

    1. Polliesdividend Post author

      Gutentag Uwe,

      Thanks for visiting my website! Hopefully you will find some good investing ideas here. And don’t forget to visit my friends from my Blogroll
      Cheers,

      Pollie

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