Wow. I needed to take a second to cease after I typed the title of this text out. I can’t imagine it’s already 2019. Time continues to fly by, and earlier than I do know it, I’ll be turning 30 in July. 2018 was such an unimaginable yr for dividend investing, and it was distinctive to look at from an investor’s perspective. We started with unimaginable, shock dividend will increase at the start of the yr and ended with a turbulent market (to say the least). Lanny and I have been speaking about it, however I am unable to bear in mind the final time there have been so many wild swings on a daily foundation. But, as all the time, we’re ready and able to take a methodological method to investing. I’m beginning to ramble, so let’s get again to the duty at hand. Each month, we do our greatest to focus on as many firms which can be anticipated to announce a dividend enhance that month. Since we love dividend will increase and observe them so intently, we love making an attempt to share the information with you! Here is our itemizing of anticipated dividend will increase in January 2019!
Actual Dividend Increases in December 2018
Before wanting forward, I all the time wish to overview the actual results from the prior month. After all, what enjoyable wouldn’t it be if we did not follow-up on the outcomes? In December, we predicted that 5 firms have been going to extend their dividends in the course of the month. And, for as soon as, all the firms have made their announcement by the point I started writing this text! Victory! On prime of it, I’ve three bonus dividend will increase that weren’t included in final month’s article that I’m including to the checklist. However, as a preview of the outcomes, here’s a tweet that I authored in the future as a result of I used to be so pumped up concerning the loopy dividend will increase that have been being introduced this month!
- Company #1: AT&T (NYSE:T) – You know what’s humorous? Every yr, Lanny and I attempt to persuade ourselves that AT&T goes to extend its quarterly dividends by an quantity higher than $.01/share. And annually, the corporate proves us unsuitable. 2018 was no totally different, and AT&T caught to the plan. Its quarterly dividend elevated to $.51/share from $.50/share. Maybe subsequent yr would be the yr the corporate adjustments issues up! Still, could not be happier this firm is in our dividend stock portfolios.
- Company #2: Pfizer (NYSE:PFE) – In my article final month, I discussed that PFE has a 7.2% 5-year common dividend progress price, and the corporate’s earlier dividend enhance was 6.25%. PFE should perceive one thing about consistency right here, as a result of the corporate introduced a 5.9% enhance in its quarterly dividend. Sure, that is decrease than its common; nonetheless, it’s fairly darn shut and in step with the corporate’s current historical past. PFE misplaced its Aristocrat standing in the course of the monetary disaster; nonetheless, the corporate is slowly clawing its means again.
- Company #3: Boeing (NYSE:BA) – Boeing has completely CRUSHED it with its dividend will increase in recent times. Guess what, 2018 was no totally different. Boeing introduced yet one more 20% enhance within the firm’s quarterly dividend. What’s humorous is that that is truly under the corporate’s 5-year common dividend progress price. Go determine, proper?
- Company #4: Abbott Laboratories (NYSE:ABT) – We talked about that ABBV introduced an enormous dividend enhance earlier within the yr and have been curious if ABT would observe the opposite half of the formally consolidated firm’s lead. While ABT introduced a fantastic dividend enhance, ABT’s enhance actually wasn’t on the similar degree as ABBV after contemplating its a number of dividend will increase. However, can you actually complain when an organization will increase their quarterly dividend by 14.3%?? Congrats, ABT shareholders!
- Company #5: ABM Industries (NYSE:ABM) – The firm buried its 2.9% dividend enhance in its earnings launch. Its dividend yield is presently round 2.25% on the time of the article, so I might have anticipated that its dividend enhance would have been a bit of bigger for this low-yielding dividend progress stock.
- Bonus Company #1: Norwood Financial Corp. (NASDAQ:NWFL) – Lanny and I own several community banks based mostly on our background. One of these banks introduced a shock dividend enhance this month, and the 2 of us have been fairly enthusiastic about this one. NWFL elevated its quarterly dividend 9.1% to $.24/share from $.22/share. It is all the time enjoyable receiving a dividend enhance. But it’s THAT way more enjoyable receiving a shock dividend enhance!
- Bonus Company #2: Realty Income (NYSE:O) – I’m type of kicking myself for not together with this dividend enhance in my final article. Maybe I’ve simply develop into so accustomed to receiving the quarterly dividend enhance from Realty Income that I by no means count on it to return. Or, it might be the truth that the dividend enhance is often a fraction of a penny and the rise provides a greenback or two to my ahead dividend earnings. Regardless, I nonetheless want to recollect to incorporate them going ahead. This month, Realty earnings elevated its month-to-month dividend to $.221/share from $.2205/share. Interestingly, that was the 99th dividend enhance because the firm’s inception, and it appears to be like like it can enter the triple-digit membership within the first quarter of 2019. Get pumped!
- Bonus Company #3: Waste Management (NYSE:WM) – To be trustworthy, Waste Management will not be an organization that I intently observe. The solely affiliation I’ve with WM is that I see its vans leaving my firm’s car parking zone usually. But I used to be within the zone in the future, researching firms, and I noticed that Waste Management elevated its dividend by 10%. That needed to be welcome information for the corporate’s shareholders, as its dividend will increase have been lower than stellar.
Expected Dividend Increases in January 2019
If you all recall, January 2018 was actually when the insanity started to occur. Post-tax reform, firms have been saying shock dividend will increase left and proper. While I’m actually not anticipating firms to announce these type of dividend will increase yearly, I will likely be curious to see what firms do in Year 2 of the decrease company tax setting, countered by an growing rate of interest setting. Will we revert again to regular? Or will we nonetheless see beneficiant will increase to shareholders? Who is aware of? But let’s start with making an attempt to foretell a few of the firms which can be anticipated to announce dividend will increase in January!
- Company #1: Consolidated Edison (NYSE:ED) – This is certainly one of our favourite firms. Hence, Consolidated Edison is certainly one of our Top 5 Foundation Dividend Growth Stocks. The firm has been round perpetually and elevated its dividend for a very long time. On prime of it, it’s a main participant in a extremely regulated utility sector. What’s to not like? Its 5-year dividend progress price is not horrible, 3.06%, and we have now no motive to imagine that ED will not proceed its spectacular annual dividend enhance streak!
- Company #2: Kimberly-Clark Corporation (NYSE:KMB) – I do love shopper staple shares. I personal lots of them, and on prime of it, I added Smucker (NYSE:SJM) to my final watch checklist. KMB was an organization I ought to have paid nearer to in October; nonetheless, its value has jumped up since then. Like ED, KMB would not have the very best dividend progress price (5-year common is simply over 4%). Hopefully, that is the yr KMB reverses the development and knocks its shareholders’ socks off.
- Company #3: Air Products and Chemicals, Inc. (NYSE:APD) – APD is a Dividend Aristocrat that I’ve not adopted intently through the years. However, APD’s yield is underneath 3%, and its 5-year common dividend progress price is near 9%. If the corporate can ship a double-digit p.c enhance, I’ll start paying nearer attention to it. It operates in a sector that’s under-represented in my dividend portfolio.
- Company #4: A.O. Smith Corp (NYSE:AOS) – AOS is one other firm that’s off my radar. Its efficiency in 2018 has not been stellar, as the corporate is down over 30% year-to-date. Now, AOS is yielding over 2%; a lot increased than its historic dividend yield. The firm introduced a formidable 22% dividend enhance final yr. I’m curious if that can proceed after the corporate’s stock value fell a lot this yr.
- Company #5: 3M Corp (NYSE:MMM) – This is a possible dividend enhance. Typically, 3M will increase its dividend in February. However, final yr, 3M jumped the gun and introduced its dividend enhance on the finish of January. Last yr, 3M’s dividend enhance was robust and its competitor ITW introduced an enormous enhance within the third quarter. Will 3M ship as soon as once more for shareholders? I certain hope so, as 3M is certainly one of my favourite holdings!
- Companies #6 – The Banking Industry – Last, however not least, the banking business. Last January, there have been lots of banks, each massive and small, that elevated their dividend in January. We’ve seen banks proceed to ship robust will increase all through 2018. With rising rates of interest and a rising value of deposits, how will banks reply in 2019? Will they proceed to develop their dividend or rein of their dividend will increase based mostly on this new working setting?
Summary
Hopefully, 2019 will start off in the identical method as 2018. If so, we’re going to be in for fairly a curler coaster of a journey. Dividend will increase are such an vital facet of our investing technique, and we love following them intently. Sometimes it makes us anxious, different instances it makes us excited, and different instances, we depart indignant that the rise wasn’t fairly as massive as we have been anticipating. That’s a part of the sport, and that’s the reason we love enjoying the sport. Let’s have a protected and comfortable new yr and start 2019 off on the fitting foot!
– Bert
