Expected Dividend Increases for February 2022

As I'm writing this blog post, January is just a few days away from wrapping up. This should hopefully mean that the days of sub-zero Fahrenheit temperatures will soon be coming to an end here in Central Wisconsin.

Since we're basically at the end of the month, I'm going to be going over dividend increases in the portfolio that occurred in January 2022. Overall, there were quite a few surprise dividend increases this month (and there was the surprise that Realty Income kept its monthly dividend at $0.2465 per share when I was expecting a slight raise). I'm also going to be looking ahead to the dozen dividend increases that I'm expecting in February 2022. Yes, I'm actually projecting 12 dividend increases next month!

Actual Dividend Increases for January 2022

Dividend Increase #1: BlackRock (BLK)

BlackRock announced an 18.2% increase in its quarterly dividend from $4.13 to $4.88 per share. For the sake of conciseness, BLK's raise more than doubled my expectations. But this really shouldn't be much of a surprise given that BLK is an absolute world-class business.

My net annual forward dividends soared $3.00 across my single share of the stock as a result of the announcement.

Dividend Increase #2: Alliant Energy (LNT)

Just as Alliant Energy alluded to and I outlined in my previous post of this series, the company made its 6.2% increase in its quarterly dividend from $0.4025 to $0.4275 per share official in January. This is nothing new for the electric and natural gas utility headquartered in my home state. LNT consistently hands out 6% to 7% dividend raises.

Across my 13 shares of LNT, my net annual forward dividends increased $1.30 due to the dividend increase.

Dividend Increase #3: Kimberly Clark (KMB)

Kimberly Clark announced a 1.8% increase in its quarterly dividend from $1.14 to $1.16 per share, which came in below my expectations. The good news is that this was KMB's 50th straight year of dividend increases, which will now make it a Dividend King.

My net annual forward dividends edged $0.32 higher across my four shares of KMB as a result of the dividend announcement.

Dividend Increase #4: Wells Fargo (WFC)

The first dividend increase that came as a surprise to me was from Wells Fargo, which hiked its quarterly dividend by 25% from $0.20 to $0.25 per share. While WFC has a ways to go before it returns to its pre-COVID dividend of $0.51 per share, the company is strongly trending in the right direction. I'm looking forward to another whopper of a dividend hike in July from WFC.

Across my eight shares of WFC, my net annual forward dividends surged $1.60 higher due to the dividend raise.

Dividend Increase #5: Enterprise Products Partners (EPD)

Another dividend (technically distribution) increase that I didn't expect was from Enterprise Products Partners. The stock announced a 3.3% increase in its quarterly distribution from $0.45 to $0.465 per share. EPD is the model of consistency within the midstream industry, which is proven every year with distribution increases.

My net annual forward dividends were boosted by $2.16 across my 36 units of EPD as a result of the distribution raise.

Dividend Increase #6: Energy Transfer (ET)

Another midstream stock that hiked its distribution in January was Energy Transfer (ET), which announced a 14.8% increase in the quarterly distribution from $0.1525 to $0.175 per unit. ET is doing a spectacular job of executing and deleveraging, which is why I believe the distribution will be restored to $0.305 per unit sooner rather than later.

Across my 58 units of ET, my net annual forward dividends soared $5.22 due to the recent distribution raise.

Dividend Increase #7: Viatris (VTRS)

The final increase that came as a welcomed surprise to me was from Viatris, which bumped its quarterly dividend up 9.1% from $0.11 to $0.12 per share. Viatris has been a publicly traded company for barely a year and it already delivered a strong increase to its shareholders. So far, so good!

My net annual forward dividends rose $1.48 across my 37 shares of VTRS (at the time of the announcement) as a result of the dividend raise.

Expected Dividend Increase #1: Genuine Parts Company (GPC)

The first dividend increase that I'm anticipating in February is from Genuine Parts Company. Because analysts are forecasting that GPC's adjusted diluted EPS will increase 9% to $7.34 in 2022, I believe that the stock will raise its quarterly dividend by 8% from $0.815 to $0.88 per share.

If this raise plays out as I expect, my net annual forward dividends will be boosted by $1.56 from such an announcement.

Expected Dividend Increase #2: Home Depot (HD)

The next raise that I'm expecting next month is from Home Depot. Given that analysts are forecasting $16.19 in adjusted diluted EPS for next year, I predict that HD will announce a 10.9% increase in the quarterly dividend from $1.65 to $1.83 per share. 

My net annual forward dividends would increase $1.44 across my two shares of HD if my projection is proven correct.

Expected Dividend Increase #3: Albemarle (ALB)

The third dividend hike that I'm forecasting will be announced in February is from Albemarle. Since it's expected that ALB's EPS will surge 48% in 2022 to $5.99, I believe the stock will raise its quarterly dividend by 41% from $0.39 to $0.55 per share. 

If this raise does materialize, my net annual forward dividends would skyrocket $3.20 higher across my five shares of ALB.

Expected Dividend Increase #4: Prudential Financial (PRU)

The next dividend increase that I'm expecting for next month is from Prudential Financial. My prediction is that PRU will announce a 5.2% increase in its quarterly dividend from $1.15 to $1.21 per share. 

If my projection is correct, my net annual forward dividends would surge $2.40 across my 10 shares of PRU.

Expected Dividend Increase #5: L3Harris Technologies (LHX)

The fifth dividend raise that I believe will be announced in February is from L3Harris Technologies. I am expecting a 9.8% hike in the quarterly dividend from $1.02 to $1.12 per share. 

My net annual forward dividends would be boosted by $1.60 across my four shares of LHX if my prediction is accurate. 

Expected Dividend Increase #6: Digital Realty Trust (DLR)

The next dividend increase that I'm expecting next month will be from Digital Realty Trust. I'm anticipating that DLR will announce a 5.2% increase in its quarterly dividend from $1.16 to $1.22 per share.

If my projection is right, my net annual forward dividends would increase by $0.72 across my three shares of DLR.

Expected Dividend Increase #7: United Parcel Service (UPS)

The seventh dividend hike that I'm forecasting in February is from United Parcel Service. UPS will be targeting a 50% payout ratio of the prior year's adjusted EPS and analysts are expecting $11.62 in adjusted EPS in 2021. That's why I believe UPS will declare a 42.2% increase in its quarterly dividend from $1.02 to $1.45 per share.

Across my four shares of UPS, my net annual forward dividends would skyrocket $6.88 higher if my prediction is correct.

Expected Dividend Increase #8: Cisco Systems (CSCO)

The next dividend increase that I'm expecting next month is from Cisco Systems. Since analysts are forecasting a 6.2% increase in CSCO's adjusted EPS to $3.42, I project that CSCO will announce a 5.4% raise in the quarterly dividend from $0.37 to $0.39 per share.

My net annual forward dividends will increase by $0.88 across my 11 shares of CSCO if my forecast is proven right.

Expected Dividend Increase #9: T. Rowe Price Group (TROW)

The ninth dividend raise that I'm projecting will occur in February is from T. Rowe Price Group. I believe that TROW will announce a 10.2% increase in its quarterly dividend from $1.08 to $1.19 per share. 

Across my four shares of TROW, my net annual forward dividends would be boosted by $1.76 if my prediction is correct.

Expected Dividend Increase #10: Omnicom Group (OMC)

The next dividend hike that I expect will be declared next month is from Omnicom Group. My projection is that OMC will raise its quarterly dividend by 7.1% from $0.70 to $0.75 per share. 

My net annual forward dividends would go $1.40 higher across my seven shares of OMC if my estimate is right.

Expected Dividend Increase #11: Allstate (ALL)

The eleventh dividend increase that I'm forecasting for February is from Allstate. My prediction is that ALL will raise its quarterly dividend by 6.2% from $0.81 to $0.86 per share. 

Across my five shares of ALL, my net annual forward dividends would increase by $1.00 if my projection is accurate.

Expected Dividend Increase #12: 3M (MMM)

The next dividend increase that I'm predicting next month is from 3M. I believe that MMM will announce a 5.4% increase in the quarterly dividend from $1.48 to $1.56 per share. 

My net annual forward dividends would be boosted by $1.28 across my four shares of MMM if my prediction is correct. 

Expected Dividend Increase #13: Medical Properties Trust (MPW)

The final dividend increase that I'm expecting in February is from Medical Properties Trust. I predict that MPW will raise its quarterly dividend by 3.6% from $0.28 to $0.29 per share.

Across of my 16 shares of MPW, my net annual forward dividends would increase by $0.64.

Concluding Thoughts:

January was far better for dividend increases than I could have ever imagined. The seven dividend increases that I received during the month helped my net annual forward dividends to surge $15.08 higher. It would take $430.86 of fresh capital invested at an average weighted dividend yield of 3.5% to replicate the impact of my dividend raises in January.

Looking ahead to next month, my net annual forward dividends would be propelled $24.76 higher if all of my predictions are correct. This would require an astonishing $707.43 in fresh capital to match with a 3.5% dividend yield.

Discussion:

How was your January 2022 for dividend increases?

Are you expecting any dividend increases from your newer holdings like I am with ALL and MPW next month?

I appreciate your readership (especially in a blog post as lengthy as this one!) and look forward to your comments in the section below!