Expected Dividend Increases in February 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.
My post is a little bit later than normally, because it was really hard to balance my time between work, family and Polliesdividend. I had some good conversations that resulted in a new job! *Cheers*. At this moment I’m working on finishing my work on my current job. Just a few weeks left and then I will start with my new job.
Last month
But before I take a look at the month of February, just let us first look back if the companies of the previous month’s article did what I expected.
3M Company (MMM)
3M has announced its dividend hike in January. They announced it in the beginning of February. 3M announced a 5.9% increase of their quarterly dividend rate, from $1.36 per share to $1.44 per share.
This increase is lower than the last year, but in line with the increase of the year before. Although it isn’t as much as 2018, I still like these kind of increases. For more information about this increase see my post about the dividend increase of MMM.
2019 | 2018 | 2017 | DGR-10yrs | |
MMM | 5.9% | 15.7% | 5.9% | 10.4% |
Table 1. Dividend increases of MMM
This increase is lower than its 10 years average and it was lower than I predicted. But hey, every increase is welcome here at Polliesdividend.
Realty Income (O)
On January 15thRealty Income announced a 2.04% increase of their monthly dividend rate, from $0.221 per share to $0.2255 per share. For more information about this increase see my post about this dividend increase of Realty Income.
2019 January | 2018 January | 2017 January | DGR-10yrs | |
O | 2.04% | 3.1% | 4.0% | 4.4% |
Table 2. Dividend increases of O
This increase was lower than my prediction. But the monthly dividend company delivered another increase. I’m happy with it.
Consolidated Edison (ED)
On January 17the ConED announced a 3.5% increase of their quarterly dividend. The dividend is raised from $0.715 to $0.74. No surprise over here, ConEd did just as expected. For more information, just read my post about the dividend increase of ED.
2019 | 2018 | 2017 | DGR-10yrs | |
ED | 3.5% | 3.6% | 3.0% | 2.0% |
Table 3. Dividend increases of ED.
I was spot on with my prediction!
Chevron (CVX)
On January 30thChevron announced 6.2% increase of their quarterly dividend. The dividend is raised from $1.12 to $1.19. For more information about this increase see my post about this dividend increase of Chevron.
2019 | 2018 | 2017 | DGR-10yrs | |
CVX | 6.2% | 3.7% | 0.70% | 3.97% |
Table 4. Dividend increases of CVX.
I didn’t predict this one; I was expecting this to be announced in February.
Aflac (AFL)
On the last day of January AFLAC Incorporated (AFL) announced a 3.8% increase in its quarterly dividend. Aflac raised its dividend from $0.26 to $0.27.
2019 | 2018 | 2017 | DGR-10yrs | |
AFL | 3.8% | 19.54% | 4.82% | 6.88% |
Table 5. Dividend increases of AFL.
As with CVX, I didn’t predict this one; I was expecting this to be announced in February.
BHP Billiton (BBL)
On January 30ThI got a special dividend from BBL. BHP Billiton announced a super dividend of $1.02 per share. Because BBL-ADR consists of two shares of BHP, the dividend for BBL was $2.04 cents.
I have received €53.46 ($61.20) in special dividend. Man I like special dividends
For more information about this special dividend, see my post about the special dividend of BBL.
These were my dividend increase for the month of January, including one special dividend. All these nice increases are responsible that my annual dividend will increase with a total of € 71.93 ($ 82.16). My Vrijheid Fondsis working for me and gives me some extra money just by doing nothing!
I didn’t predict all these increase, but what a great month this was.
February
Here are my predictions for the dividend increases in February 2019.
Archer-Daniels Midland (ADM)
ADM is a dividend aristocrat, with 43 years of dividend increases. ADM is a solid dividend aristocrat, with some great increases.
2018 | 2017 | DGR-10yrs | |
ADM | 4.7% | 6.7% | 9.9% |
Table 6. Dividend increases of ADM.
Okay I will not have to make a prediction, because ADM already announced a 4.5% increase in its quarterly dividend. ADM raised its dividend from $0.335 to $0.35. For more information about this increase see my post about this Dividend increase by ADM.
Walmart (WMT)
Walmart is a dividend aristocrat that announced an increase in their dividend every February. Since 2014, the company has increased their quarterly dividend by only $.01/share.
2018 | 2017 | DGR-10yrs | |
WMT | 2.0% | 2.0% | 9.4% |
Table 7. Dividend increases of WMT.
I looked on the Internet and in their latest company financial information. On the basis of my own little research I expect the much-expected increase to be around 2%.
Current Dividend Yield: 2.15%
Prediction quarterly dividend: 1.5% – 2.5% increase to $0.528-0.533
Coca Cola (KO)
Coca Cola is the dividend aristocrat with probably the most famous brand. KO has been raising its dividend for 56 years straight. KO has had a hard time the last couple of years. Although the best years are over for this dividend aristocrats, I still expect a dividend increase for this year that beats inflation.
2018 | 2017 | DGR-10yrs | |
KO | 5.4% | 5.7% | 7.5% |
Table 7. Dividend increases of KO.
I looked on the Internet and in their latest company financial information. On the basis of my own little research I expect the much-expected increase to be around 4%.
Current Dividend Yield: 3.16%
Prediction quarterly dividend: 2.6% – 5.1% increase to $0.408-0.41
Finally
For three 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. 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!
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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