Expected Dividend Increases in September 2019 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 20 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.
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 22, 2019 South32 Ltd. gave their 2019 Financial Result presentation. I dove in this presentation and….. I didn’t find a dividend increase this year. This was a bit of a disappointment, I must admit. I’m not happy with it, and I’ll evaluate my position in the next few weeks.
No dividend increase for their final dividend. This also means that I was completely wrong with my prediction. Better luck next time.
BHP Billiton PLC – ADR (BBL)
On August 20, 2019 BHP Billiton published their results for 2019. And yes, I saw a dividend increase. BBL announced a 23.81% 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.
| 2019 August | 2018 August | 2018 February | 2017 August | DGR-5yrs | |
| BBL | 23.81% | 14.55% | 28.0% | 7.50% | -5.1% |
Table 1. Dividend increases of BBL
Royal Ahold Delhaiza (AD.AS)
On August 7th, Ahold Delhaize published their second quarter results. I have read a nice surprise in these results. As of 2019, Ahold Delhaize commits to semi-annual dividend payments. So, for 2019, I will receive a little bit extra dividend. For the first half of 2019, Ahold Delhaize will pay an interim dividend of €0.30, based on 40% of first half 2019 underlying income per share from continuing operations.
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 €118.91. My Vrijheid Fondsis 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 2019.
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 $139 in the last 5 years.
| 2018 | 2017 | 2016 | 2015 | DGR-10yrs | |
| MSFT | 9.5% | 7.6% | 8.3% | 16.1% | 14.9% |
Table 2. 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: 1.34%
Prediction quarterly dividend: 7% – 15% increase to $ 0.49-0.53
McDonalds (MCD)
McDonalds is a Dividend Aristocrat that has been raising its dividend for 43 years. MCD has shown a very nice rise of their share. And they has done an excellent job re-branding and modernizing their restaurants and menus. The market is clearly impressed judging by the nice rise of their share price. For this year I expect a nice dividend increase.
| 2018 | 2017 | 2016 | 2015 | DGR-10yrs | |
| MCD | 9.5% | 7.4% | 5.6% | 5.0% | 8.9% |
Table 3. 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: 2.12%
Prediction quarterly dividend: 10% – 15% increase to $ 1.28-1.33
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.
| 2018 September | 2017 September | 2016 September | DGR-10yrs | |
| O | 0.2% | 0.2% | 0.3% | 4.2% |
Table 4. 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: 3.55%
Prediction quarterly dividend: 0.2% – 0.3% increase to $0.2270-0.2272
Finally
I’m excited how my predictions will turn out. Next month I will write a review and look back at my predictions. How many companies do you own of this list and which increases do you expect? I like to hear for you
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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