Polliesdividend

Expected Dividend Increases in October 2018

Expected Dividend Increases in October for my Vrijheid Fonds.

It has been a crazy couple of weeks since my summer holiday. I have been working a lot, and that’s why I didn’t post more often. Unfortunately the crazy times aren’t over yet, and it is still hard to balance my time (Family – work – Polliesdividend – Vrijheid Fonds). But hey, this post can’t wait much longer to be posted otherwise it will be obsolete. So here is my post about the expected dividend increases.

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 24 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.

 

www.polliesdividend.com

 

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 October, just let us first look back if the companies of the previous month’s article did what I expected.

 

Microsoft (MSFT)

On September 18thMSFT announced a 9.5% increase of their quarterly dividend rate, from $0.42 per share to $0.46 per share. For more information about this increase see my post about this Dividend increase of MSFT.

This increase is higher than the last two years and in the top range of my estimate. I like these kind of raises.

  2018 2017 2016 2015 DGR-10yrs
MSFT  9.5% 7.6% 8.3% 16.1% 14.5%

Table 1. Dividend increases of MSFT

 

McDonalds (MCD)

On September 20ththe board of directors of MCD approved the company’s 42ndannual dividend increase, raising the dividend from $1.01 to $1.16. This is an increase of 15%!

For more information about this increase see my post about this dividend increase of McDonald’s.

  2018 2017 2016 2015 DGR-10yrs
MCD 15.0% 7.4% 5.6% 5.0% 9.8%

Table 2. Dividend increases of MCD

This increase was way above the expected increase. I see a definite increasing trend line. I love it!!

 

Realty Income (O)

As I have said already, Realty income is raising its dividend like clockwork. On September 18thRealty Income announced a 0.2% increase of their monthly dividend rate, from $0.22 per share to $0.2205 per share. For more information about this increase see my post about this dividend increase of Realty Income.

September 2018  2017  2016 DGR-10yrs
O 0.2% 0.2% 0.3% 4.4%

Table 3. Dividend increases of O

I was spot on with my prediction about this increase. 🙂

 

These were my dividend increase for the month of September. All these nice increases are responsible that my annual dividend will increase with a total of € 13.47 ($ 15.67). My Vrijheid Fonds is working for me and gives me some extra money, and this just by doing nothing!

 

October

Here are my predictions for the dividend increases I expect in October 2018.

 

AFLAC (AFL)

This Dividend Aristocrat has raised its dividend 36 consecutive years. The last couple of years they have announced their increase in October, so I hope they will do it again this year. However AFL came with a surprising dividend increase announcement in January of this year. So I’m wondering what AFL will do, will they return to their normal schedule? Or is it changed since this year.

  2017 2016 2015 DGR-10yrs
AFL 4.7% 4.9% 5.1% 8.1%

Table 4. 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 increase to be around the same as last year October.
Current Dividend Yield: 2.31%

Prediction quarterly dividend: 1% – 5% increase to $ 0.53-0.54

 

Finally

I’m excited how my predictions will turn out. Next month I will write a review and look back at my predictions.

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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5 thoughts on “Expected Dividend Increases in October 2018

  1. DivvyDad

    October is a really light month for my holdings in terms of typical raises, but AFL is one that I own and am hoping we might see a 2nd increase from them on their standard schedule. However, their raise earlier was considerably higher than their track record in recent years so it would not surprise me if there is no increase.

  2. De kleine belegger

    Always good to keep track of dividend increases.
    I participate in the increases of Realty Income and McDonalds.

    Microsoft is a wonderful company. But I have not yet taken a position because I find the valuation too high at the moment.

    The valuation of Aflac looks interesting. Especially if they raise the dividend for the second time this year. That shows confidence in the future. I am going to read more about the company.

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