Polliesdividend

Expected Dividend Increases in September 2018

Expected Dividend Increases in September 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 21 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 September, just let us first look back if the companies of the previous month’s article did what I expected.

 

South32 Ltd.ADR (SOUHY)

On August 23 South32 Ltd. gave their 2018 Financial Result presentation. I dove in this presentation and saw a dividend increase of 5% for the whole year. They also have paid a special dividend in April.

In May 2017 they changed their dividend payment schedule from annual to semi-annual, and at that moment they increased the dividend. So no new increase in August of this year 🙁

So yes I was completely wrong with my prediction. Better luck next time.

 

BHP Billiton PLC – ADR (BBL)

After slashing their dividend in 2016, BBL started raising their dividend again in 2017. Since then we saw three nice increases already. And yes in August they have announced another raise. On August 21, BBL announced a 14.55% increase of their semi-annual dividend. With my prediction of around 10%, I was on the safe side 😉 But hey, you don’t hear me complain about their recent increase.

 

  August 2018 February 2018 August 2017 DGR-5yrs
BBL 14.55% 28.0% 7.50% -5.1%

Table 2. Dividend increases of BBL

 

These were my dividend increase for the month of August. All these nice increases are responsible that my annual dividend will increase with a total of €4.80. My Vrijheid Fonds is working for me and gives me some extra money, and this just by doing nothing!

 

September

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

 

Microsoft (MSFT)

This great tech-stock has been paying dividend since 2003. And has grown the last couple of years in the right areas, especially Cloud. This growth has started in 2014 and is still going on. The stock price has gone from $32 to $112 in the last 5 years.

 

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

Table 1. Dividend increases of MSFT.

 

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 around the same as last year September.
Current Dividend Yield: 1.78%

Prediction quarterly dividend: 5% – 10% increase to $ 0.44-0.46

 

MCDonald’s COrporation (MCD)

McDonald’s Corp. is a Dividend Aristocrat that has been raising its dividend for 42 years. MCD has had a hard time the last couple of years and is this year the stock is still about 6% down. But there is a silver lining. So I expect a dividend increase for this year.

 

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

Table 2. Dividend increases of MCD

 

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 increase a last years August.
Current Dividend Yield: 2.48%

Prediction quarterly dividend: 5% – 10% increase to $ 1.06-1.11

 

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 September aren’t the biggest every year.

 

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

Table 3. 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 $0.2244-0.2266

 

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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2 thoughts on “Expected Dividend Increases in September 2018

  1. DivvyDad

    Looking forward to the MSFT raise, as most are expecting a fairly healthy raise this year. I just had VZ announce a raise today, although it was only a 2.1% increase. That isn’t a surprise as it is pretty consistent with their recent trend, but every dollar helps.

  2. Dividend Portfolio

    I for one am looking forward to raises from MCD and O. MCD might be down from last year, but I’m planning on holding the company for the long term and hopefully, by the time I am ready to sell, decades from now, the stock will be trading higher.

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