Expected Dividend Increases for July 2021

As I'm writing this blog post, the first official day of summer is just two days away. 

In an interesting twist, the first day of summer is set to be well below normal here in Central Wisconsin at a high of just 74 degrees Fahrenheit and a low of 55 Fahrenheit.

Moving to the intent of this post, I will be reviewing the dividend increases that I received during June 2021, and looking ahead to the dividend increases that I am expecting in July 2021.

Actual June 2021 Dividend Increases

Dividend Increase #1: Realty Income (O)

As has been the case in the 3 1/2 years that I have owned the stock, Realty Income didn't fail to meet my expectations. O announced a 0.2% increase in its monthly dividend, from the previous dividend of $0.2350/share to the new dividend of $0.2355/share.

Across my 13 shares of the stock, my net annual forward dividends increased $0.078 as a result of O's dividend announcement.

Dividend Increase #2: W.P. Carey (WPC)

W.P. Carey also announced a 0.2% increase in its quarterly dividend, from the previous dividend of $1.048/share to the new dividend of $1.050/share.

Due to WPC's dividend increase, my net annual forward dividends were boosted by $0.056 across my 7 shares of the stock.

Dividend Increase #3: UnitedHealth Group (UNH)

Rounding out my discussion of dividend increases that I received during June 2021, UnitedHealth Group exceeded my expectation of a 14.4% increase to its quarterly dividend, from $1.25/share to $1.43/share.

UNH instead announced a 16.0% increase in its quarterly dividend, taking it to $1.45/share.

As I discussed in a recent Motley Fool article, I believe that UNH's dividend remains as safe now as it was leading up to the dividend hike, which actually prompted me to recently add to my position.

Across my single share of the stock at the time of the dividend increase, my net annual forward dividends advanced $0.80.

Surprise Dividend Increase: Simon Property Group

While Simon Property Group was due to begin increasing its dividend at some point as COVID restrictions ease and the economy recovers, especially after the 38.1% dividend cut last June as a measure of caution to preserve liquidity, it certainly came as a surprise to me when SPG increased its quarterly dividend 7.7% from $1.30/share to $1.40/share.

As a result of SPG's dividend increase, my net annual forward dividends were boosted by $2.40 across my 6 shares of the stock.

Expected Dividend Increases for July 2021

Expected Dividend Increase #1: Wells Fargo (WFC)

In what I anticipate will be the first increase in Wells Fargo's quarterly dividend since its cut last year, I believe that Wells Fargo's quarterly dividend will be increased to $0.25/share based on Yahoo Finance's average analyst estimate of $3.81 for this fiscal year and a return to a more generous payout ratio.

If this dividend increase plays out, this would work out to a $4.80 increase in my net annual forward dividends across my 8 shares of the stock.

Expected Dividend Increase #2: J.M. Smucker (SJM)

I'm expecting a 3.3% increase in J.M. Smucker's quarterly dividend from $0.90/share to $0.93/share, which would be a notable slowdown from the company's 3 year DGR of 4.9%.

Since SJM is positioned to continue to face growth difficulties going forward, I believe this is a realistic expectation for shares of SJM.

Across my 2 shares of SJM, my net dividends would increase $0.24 if SJM's dividend increase plays out as expected.

Expected Dividend Increase #3: National Retail Properties (NNN)

The final dividend increase that I am expecting for July is from none other than National Retail Properties.

Since NNN is anticipating a recovery in its AFFO/share from $2.80 in 2019 to a midpoint AFFO/share figure of $2.94 in 2021, I believe that NNN will raise its quarterly dividend 3.8% from $0.52/share to $0.54/share. 

My net dividends would advance by $0.88 across my 11 shares of the stock, if the dividend is increased as much as I expect.

Concluding Thoughts:

Overall, O and WPC delivered just as I thought they would in June. I was very pleased to find that UNH's dividend increase slightly exceeded my expectations, and SPG's dividend increase took me by surprise.

These 4 dividend increases helped my net annual forward dividends to advance by $3.334 in June, which would take a fresh capital investment of $83.35 at a 4% yield to replicate.

While I am expecting less dividend increases in July compared to June, I am forecasting a $5.92 increase in my net annual forward dividends primarily due to WFC's anticipated dividend hike.

Discussion:

How was your June in terms of dividend increases?

Are you anticipating any first time dividend increases as I am with NNN?

As always, I appreciate your readership and welcome your comments in the comment section below!