April 2022 Dividend Stock Watch List

As I'm writing this blog post, it's the second day of spring. While temperatures have cooled off a bit over the last few days here in Central Wisconsin, they are still pleasant with highs reaching into the low-40 degrees Fahrenheit.

With most of March 2022 in the books, now would be a good time to look ahead to next month at three compelling stocks that I'm considering adding to my dividend growth stock portfolio.

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Dividend Stock #1: Innovative Industrial Properties (IIPR)

The first stock that I'm thinking about adding to my portfolio in April is the U.S. cannabis real estate investment trust known as Innovative Industrial Properties. Since marijuana is still illegal at the federal level in the U.S., companies aren't able to receive financing from financial institutions. But IIPR purchases properties from marijuana companies and leases them back. This gives the latter funds to focus on growing operations. 

This clever business model has allowed the stock to grow to 105 properties in 19 U.S. states. It led IIPR's adjusted funds from operations (AFFO) per share to surge 32.9% higher year-over-year to $6.66 in 2021.

As a result, it should come as no surprise that IIPR's dividends per share paid jumped 29.1% year-over-year to $5.46 in 2021. This represents a manageable AFFO payout ratio of 82%. President and CEO Paul Smithers pointed out in IIPR's recent earnings call that legal annual global cannais spending of $25 billion in 2021 was a fraction of the more than $400 billion market including illegal cannabis. As more markets legalize cannabis, this provides IIPR with a lengthy growth runway. 

Despite its incredible growth prospects, IIPR is trading at a 2021 price to AFFO per share ratio of 29.7 at the current $198 share price (as of March 21, 2022). Throw in the stock's market-crushing 3.5% dividend yield and this makes IIPR an interesting dividend growth stock.

Dividend Stock #2: Comcast (CMCSA)

The second stock that I'd like to buy next month is the internet/cable provider and media conglomerate Comcast. 

Comcast is a well-diversified business with growth catalysts like its broadband internet business. The broadband internet business was the driving force behind Comcast's 3.3% year-over-year increase in its overall customer relationships to 34.2 million in 2021. 

This led Comcast's revenue 12.4% higher year-over-year to $116.4 billion in 2021 while adjusted EPS advanced 23.8% to $3.23 for the year. With an adjusted EPS payout ratio of 30.3% in 2021 ($0.98 in dividends per share paid divided by $3.23 in adjusted EPS), the stock has plenty of room to grow its dividend.

This is especially the case since analysts anticipate that Comcast's adjusted EPS will compound at a blistering 14.3% annual rate over the next five years. At the current $46 share price, the stock trades at a current year P/E ratio of just 13.1. 

Comcast stock could provide a market-beating 2.3% dividend yield with robust earnings growth potential to my portfolio at a dirt-cheap valuation. That's exactly why the stock is firmly on my radar.

Dividend Stock #3: A.O. Smith (AOS)

The third stock that's on my watch list for April is A.O. Smith, which provides water heating and water treatment solutions to customers.

As Jason Fieber of Daily Trade Alert argued in a recent article, water could be the liquid gold of this century in the same way that oil was the liquid gold of the last century. 

The necessity of water and a growing global population almost guarantees that the demand for A.O. Smith's products will only continue to increase. That's exactly why analysts expect that the stock's adjusted EPS will grow at an 8% annual clip over the next five years. Compared to the 15% rate posted in the past five years, that actually seems conservative in my opinion.

Regardless, the stock's growth forecast is definitely healthy. And with an adjusted EPS payout ratio of 35.1% in 2021 ($1.06 in dividends per share paid divided by $3.02 in adjusted EPS), the stock has flexibility to build on its status as a Dividend Aristocrat in the years ahead.

At the current $68 share price, AOS's market-topping 1.6% dividend yield can be purchased at a current year P/E ratio of 19.1. What's not to love about a business model essential to human life that can't be innovated away? Along with the reasonable valuation and solid growth outlook, AOS has caught my attention recently.

Concluding Thoughts:

Because there are five Fridays in April, I estimate that over $3,000 in capital will be available for investment during the month. The weighted average net yield of these three dividend growth stocks is around 2.5%. I'll likely invest around $2,000 between the three of these stocks and the remaining $1,000 will be allocated to relatively safe, higher yielding dividend stocks.

Before even considering the dividend increases that I'm predicting for April, I will add around $90 to my net annual forward dividends during the month from dividend stock purchases.

Discussion:

Are any of IIPR, CMCSA, or AOS on your watch list for next month?

If not, what stocks are you thinking about buying?

As always, I appreciate your readership and welcome your comments below!

Expected Dividend Increases for April 2022

As I'm writing this blog post, it's already late-March and the next few days are going to see highs reach into the low-50 degrees Fahrenheit range here in Central Wisconsin. It's so great to have daylight until 7:30 PM and next to no snow cover!

With that aside, I'm going to delve into the dividend announcements that were made in March 2022 and look ahead to the dividend raises that I'm anticipating for next month.

Actual Dividend Increases for March 2022

Dividend Increase #1: Digital Realty Trust (DLR)

The first dividend increase that I received in March was from Digital Realty Trust. DLR announced a 5.2% increase in its quarterly dividend per share from $1.16 to $1.22, which was in line with my expectations from a couple of posts back in this series. I'm very pleased with my position in DLR and am considering adding to it in the near future.

Across my three shares of DLR, my net annual forward dividends edged $0.72 higher due to the payout raise.

Dividend Increase #2: Realty Income (O)

The next dividend increase that I benefited from this month came from Realty Income. O declared a 0.2% raise in its monthly dividend per share from $0.2465 to $0.2470. Like DLR, O's payout increase met my expectations. O has steadily upped the dividend for 27 years straight, which makes it a Dividend Aristocrat. That's precisely why the stock is a core holding within my portfolio.

My net annual forward dividends inched $0.078 higher across my 13 shares thanks to O's dividend increase.

Dividend Increase #3: W.P. Carey (WPC)

The third payout raise that I received in March was from W.P. Carey. WPC announced a 0.2% increase in its quarterly dividend per share from $1.055 to $1.057. Like O, WPC raises its dividend every quarter. WPC's dividend announcement was just below my expectation of a 0.3% raise. But the business is doing well and I expect dividend growth to pick up in the near future.

Across my seven shares of WPC, my net annual forward dividends advanced $0.056 higher as a result of the dividend announcement.

Dividend Increase #4: American Tower (AMT)

The fourth dividend increase that I benefited from this month came from American Tower. AMT declared a 0.7% increase in its quarterly dividend per share from $1.39 to $1.40. This was below my prediction of a 2.9% bump to $1.43. But AMT is another wonderful stock that raises its dividend every quarter.

My net annual forward dividends edged $0.12 higher across my three shares of AMT due to the dividend announcement.

Dividend Increase #5: Williams-Sonoma (WSM)

The next payout hike that I received in March was from Williams-Sonoma. WSM announced a 9.9% increase in its quarterly dividend per share from $0.71 to $0.78. This was right on the money with my estimate. Since my initial investment in the stock four and a half years ago, WSM has nearly quadrupled its stock price and doubled its dividend. If only every investment was this successful!

Across my nine shares of WSM, my net annual forward dividends surged $2.52 higher as a result of the dividend announcement.

Dividend Increase #6: General Dynamics (GD)

The sixth dividend increase that I benefited from this month came from General Dynamics. GD declared a 5.9% raise in its quarterly dividend per share from $1.19 to $1.26. This came in a bit below my forecast of a 7.6% increase in the quarterly dividend to $1.28, but that's still a decent raise. 

My net annual forward dividends were boosted by $1.12 across my four shares of GD due to the dividend announcement.

Dividend Increase #7: Medifast (MED)

The next payout boost that I received in March was from Medifast. MED announced a 15.5% raise in its quarterly dividend per share from $1.42 to $1.64. This came in well above my projection of an 11.3% increase in the dividend to $1.58. MED is a stock I just purchased last December and added to in January, but the stock offers a great blend of yield, growth, and value. I wouldn't mind adding another share to my position around the current $186 share price.

Across my four shares of MED, my net annual forward dividends soared $3.52 as a result of the dividend announcement.

Expected Dividend Increases for April 2022

Expected Dividend Increase #1: Johnson & Johnson (JNJ)

The first dividend raise that I'm expecting to receive next month is from Johnson & Johnson. JNJ is set to extend its dividend growth streak to 60 years straight, which is the longest streak in all of healthcare as I noted in a recent Motley Fool article. 

Analysts anticipate that JNJ's non-GAAP diluted EPS will grow 7.4% to $10.53 in 2022. I believe this will prompt the stock to announce a 7.5% hike in its quarterly dividend per share from $1.06 to $1.14.

If my guess is proven correct, my net annual forward dividends would surge $1.60 higher across my five shares of JNJ.

Expected Dividend Increase #2: Southern Company (SO)

The next payout increase that I foresee for April will come from Southern Company. As SO works to bring its nuclear facilities Vogtle 3 and 4 online next year, I expect dividend growth will likely accelerate. 

But until then, I believe SO will declare a 3% raise in its quarterly dividend per share from $0.66 to $0.68.

My net annual forward dividends would advance $0.40 higher across my five shares of SO, if my assumption is right.

Expected Dividend Increase #3: International Business Machines (IBM)

The third dividend increase that I should receive next month is from International Business Machines. Since IBM is focused on deleveraging in the aftermath of its Red Hat acquisition and forging a path to revitalizing its growth, I'm not expecting more than a token raise.

That's why I think IBM will announce a 0.6% increase in its quarterly dividend per share from $1.64 to $1.65. 

Across my four shares of IBM, my net annual forward dividends would edge $0.16 higher, if my prediction is accurate.

Expected Dividend Increase #4: Exxon Mobil (XOM)

The next payout raise that I'm expecting for April will come from Exxon Mobil. Since XOM's EPS are expected to skyrocket to $8.05 in 2022 and hold around $7 next year, I think XOM will declare a 6.8% increase in its quarterly dividend per share from $0.88 to $0.94. This should give the company plenty of room to reinvest its profits and pay down debt.

My net annual forward dividends would rocket $2.64 higher across my 11 shares of XOM, if my guess is correct.

Expected Dividend Increase #5: Raytheon Technologies (RTX)

The fifth dividend increase that I should receive next month is from Raytheon Technologies. Analysts are projecting that RTX's EPS will surge 12.2% higher to $4.79 this year. That's why I believe RTX will announce a 9.8% raise in its quarterly dividend per share from $0.51 to $0.56 per share.

Across my seven shares of RTX, my net annual forward dividends would be boosted by $1.40, if my assumption is right.

Expected Dividend Increase #6: American Water Works (AWK)

The sixth dividend increase that I'm expecting for April will come from American Water Works. With analysts forecasting 11.8% growth in AWK's EPS to $4.45 in 2022, I think a 10% raise in the quarterly dividend per share from $0.6025 to $0.6625 is realistic.

My net annual forward dividends would increase by $0.96 across my four shares of AWK, if my prediction is accurate.

Concluding Thoughts:

My net annual forward dividends were positively impacted by $8.134 due to the dividend announcements during the month. At a 3.5% weighted average net dividend yield, it would require $232.40 in capital to match the income created by my portfolio's dividend increases in March 2022.

And if my predictions for April 2022 pan out, my net annual forward dividends will increase $7.16 from dividend announcements. The persistent growth in my net annual forward dividend income only motivates me even more to keep pushing and investing as much as I possibly can.

Discussion:

How was your March 2022 for dividend raises?

Did you receive any first-time dividend increases like I did with MED?

As always, I appreciate your readership and look forward to your comments in the section below!

February 2022 Dividend Income

As I'm writing this blog post, the sun already doesn't set until nearly 6 PM here in Central Wisconsin. And with Daylight Savings Time only a week away, it will soon be light out past 7 PM. I'm stoked because that means there will be much more time to stay outdoors to exercise and get fresh air that isn't frigid!

Since the first week of March is basically over now, I'll go over my dividend income for February 2022 and how it compared to November 2021 and February 2021.

During February 2022, I collected $156.30 in net dividends. This is equivalent to an 11.9% quarterly growth rate over the $139.64 in net dividends received in November 2021.

The amount of net dividends that I collected in February 2022 was a striking 58.8% year-over-year increase compared to the $98.44 in net dividends received during February 2021. 

Digging deeper into my net dividends, I collected $142.19 from 22 companies within my Robinhood portfolio, $13.77 from three companies in my Webull account (factoring in the $0.06 ADR fee), and $0.34 from 14 companies within my M1 Finance portfolio. 

The net dividends that I received from November 2021 to February 2022 increased by $16.66, which was the result of the following activity in my portfolio:

I collected an extra $1.32 in net distributions from Energy Transfer (ET) in my Robinhood and Webull accounts, which was due to the recent 14.8% increase in its quarterly distribution.

My net dividends received from Main Street Capital (MAIN) were $0.94 higher within my Robinhood portfolio. This was the result of the stock's 2.4% increase in the monthly dividend and my purchase of another four shares of the stock during November.

I collected an additional $0.13 in dividends from Realty Income (O) in my Robinhood account, which was due to the 4.2% raise in the monthly dividend declared last November.

My net dividends received from Alliant Energy (LNT) were boosted by $5.56 within my Robinhood portfolio, which was the result of my decision to open a 13 share position in December 2021.

I collected an extra $0.77 in net dividends from AbbVie (ABBV) in my Robinhood account, which was due to the 8.5% lift in the quarterly dividend announced last November.

My net dividends received from Abbott Laboratories (ABT) were boosted by $0.12 within my Robinhood portfolio as a result of the 4.4% payout increase declared last December.

I collected an extra $1.60 in net dividends from British American Tobacco (BTI) in my Robinhood and Webull accounts. This was due to my purchase of two additional shares in November and the dividend increase.

My net distributions received from Enterprise Products Partners (EPD) increased by $1.00 within my Robinhood and Webull portfolios. This was the result of my purchase of an additional unit that I picked up last December and the 3.3% distribution increase declared in January.

I collected $4.60 in first-time dividends from Texas Instruments (TXN) in my Robinhood account, which was due to my decision to start and add to a position in TXN.

My net dividends received from Verizon (VZ) were $1.28 higher within my Robinhood portfolio. This was the result of an additional two shares that I added in October after the ex-dividend date.

I collected an extra $0.35 in net dividends from CVS Health (CVS) in my Robinhood account, which was due to the 10% dividend increase announced last December.

My net dividends received from Bristol Myers Squibb were $0.50 higher within my Robinhood portfolio, which was the result of the 10.2% payout hike declared last December.

I collected $1.50 less in net dividends from Equitrans Midstream Partners (ETRN), which I closed my position in during January.

My net dividends received in my M1 Finance account declined by $0.01. An additional $0.01 in net dividends received from ABBV was more than offset by a $0.02 reduction in net dividends from Fastenal (FAST) due to the timing of its dividend payment (it was paid in March).

Concluding Thoughts:

February 2022 was the first middle month of the quarter in which I surpassed $150 in net dividend income. And based on the $2,500 to $3,000 in capital that I'm consistently deploying each month, I anticipate that my net dividends will exceed $200 this August. Depending on my stock purchases in the coming weeks, I may even come close to that mark in May.

I'll definitely be aiming to collect at least $250 in net dividends next February.

Discussion:

How was your dividend income in February 2022?

Did you collect any dividends for the first time like I did with LNT and TXN?

I appreciate your readership and encourage your comments below!

February 2022 Dividend Stock Purchases

As I'm writing this blog post, it's already March. Over the next few days, temperatures are going to be topping out in the low-30 degrees Fahrenheit here in Central Wisconsin. It won't be long and the snow will finally be melted!

With February nearly a week behind us at this point, I will go over my dividend stock purchases for February 2022.

While I own a fractional share of Duke Energy (DUK) in my M1 Finance portfolio, DUK was the first stock that I purchased whole shares in to start February. 

All together, I acquired six shares of the stock at an average cost of $103.00 per share within my Robinhood account. As I explained in my February 2022 Dividend Stock Watch List, I liked DUK for its high dividend yield, reasonable value, and decent financial condition.

My net annual forward dividends were boosted by $23.64 due to my purchase activity, which works out to a weighted average net dividend yield of 3.83%.

I also opened a 10 share stake in Coca-Cola (KO) at an average cost of $61.08 per share in my Robinhood portfolio. As I discussed in the post that I linked to above, KO is a rationally valued Dividend King with solid earnings growth potential. 

My net annual forward dividends increased by $16.80 as a result of my purchases within my Robinhood account (prior to the dividend increase announced on the same day I purchased the stock), which equates to a 2.79% weighted average net dividend yield.

The third stock that I started a two share position in was Mastercard (MA) at an average cost of $375.22 a share within my Robinhood account. As I alluded to in the post above, I am bullish toward MA because of its tremendous growth prospects and sensible valuation.

My net annual forward dividends edged $3.92 higher due to my purchase activity, which is equivalent to a weighted average net dividend yield of 0.52%.

I added three shares to my stake in STORE Capital (STOR) at an average cost of $30.62 a share in my Robinhood and Webull portfolios. My net annual forward dividends increased by $4.62 as a result of my purchases, which works out to a 5.03% weighted average net dividend yield.

I also upped my position in T. Rowe Price Group (TROW) by two shares at an average cost of $149.08 a share within my Robinhood account. For those interested in my buying rationale, my recent Motley Fool article sums it up pretty well.

My net annual forward dividends were boosted by $9.12 due to my purchase activity (because I purchased one share before the dividend increase and one share after the dividend increase; and I account for the share purchased before the dividend increase in my expected dividend increases post linked above), which equates to a 3.06% weighted average net dividend yield.

I also added 13 shares of Kinder Morgan (KMI) to my portfolio at an average cost of $17.52 a share in my Robinhood portfolio. My net annual forward dividends were boosted by $14.43, which is equivalent to a weighted average net yield of 6.34%.

I increased my position in Medical Properties Trust (MPW) by nine shares at an average cost of $21.79 a share within my Robinhood account. My net annual forward dividends surged $10.08 higher, which works out to a 5.14% weighted average net dividend yield.

Finally, I added one share of United Parcel Service (UPS) to my Robinhood portfolio. Since this purchase was after UPS's dividend increase, my net annual forward dividends edged $6.08 higher. This equates to a weighted average net yield of 2.69%.

Concluding Thoughts:

I deployed $3,018.73 in capital during February 2022, which helped my portfolio to add $88.69 in net annual forward dividends. This is equivalent to a 2.94% weighted average net dividend yield.

My net annual forward dividends also increased by $2.47 due to dividend increases announced in February 2022. Combining my capital deployment and dividend announcements during the month, my net annual forward dividends were just under $2,490 heading into March 2022.

Discussion:

How was your February 2022 for dividend stock purchases and capital deployment?

Did you start any new whole share positions during the month like I did with DUK, MA, and KO?

As usual, I thank you for your readership and welcome your comments in the comment section below!

Expected Dividend Increases for March 2022

As I'm writing this blog post, the temperatures in the next few days are expected to reach into the low-40 degrees Fahrenheit here in Central Wisconsin.

With another month almost in the books, it's time to look back at the dividend announcements for February 2022. I'll look ahead at the dividend announcements that I'm anticipating for March 2022 as well.

Actual Dividend Increases for February 2022

Dividend Increase #1: Genuine Parts Company (GPC)

The first dividend increase that I benefited from in February was from Genuine Parts Company. GPC boosted its quarterly dividend per share 9.8% from $0.815 to $0.895, which was more than the raise to $0.88 that I was expecting. GPC is nearly seven full decades into its streak of raising its payout, yet the solid raises just keep coming. Overall, I'm very pleased with my position in GPC.

Across my six shares of GPC, my net annual forward dividends advanced $1.92 higher as a result of the dividend announcement.

Dividend Increase #2: Home Depot (HD)

The next dividend increase that I received during the month came from Home Depot, which also beat my prediction with its dividend increase. HD upped its payout to shareholders by 15.2% from a quarterly dividend of $1.65 to $1.90 per share. Similar to GPC, I'm very pleased with my stake in HD.

My net annual forward dividends surged $2.00 higher due to the dividend increase across my two shares of the stock.

Dividend Increase #3: Albemarle (ALB)

The third dividend increase that I benefited from in February was from Albemarle. ALB declared a 1.3% increase in its quarterly dividend from $0.39 to $0.395 per share, which was well short of my forecast of a boost to $0.55 per share. My thesis that significant growth in EPS would lead to a far higher payout this year was wrong. The good news is that ALB has crushed the market - - nearly tripling in the less than three years that I have owned the stock.

Across my five shares of ALB, my net annual forward dividends inched $0.10 higher as a result of the dividend announcement.

Dividend Increase #4: Prudential Financial (PRU)

Another dividend increase that I received during the month came from Prudential Financial. PRU announced a 4.3% increase in its quarterly dividend from $1.15 to $1.20 per share, which was just shy of my expectation of a bump to $1.21. PRU offers a nice blend of yield and dividend growth, so I'm perfectly fine with its raise.

My net annual forward dividends clocked in $2.00 higher due to the dividend announcement across my 10 shares of PRU.

Dividend Increase #5: L3Harris Technologies (LHX)

The fifth dividend increase that I benefited from in February was from L3Harris Technologies. LHX declared a 9.8% increase in its quarterly dividend per share from $1.02 to $1.12, which was in line with my prediction. LHX has been a solid dividend growth stock since I started purchasing shares in 2019.

Across my four shares of LHX, my net annual forward dividends were boosted by $1.60 as a result of the dividend announcement.

Dividend Increase #6: United Parcel Service (UPS)

Another dividend increase that I received during the month came from United Parcel Service. UPS announced a 49% hike in its quarterly dividend from $1.02 to $1.52 per share, which beat my forecast of a raise to $1.45 per share. My initial tranche of UPS shares purchased in March 2020 have more than doubled. Add in the tremendous dividend growth from UPS and I'm glad that I own the stock.

My net annual forward dividends skyrocketed $8.00 higher across my four shares of UPS at the time of the dividend announcement.

Dividend Increase #7: Cisco Systems (CSCO)

The seventh dividend increase that I benefited from in February was from Cisco Systems. CSCO declared a 2.7% increase in its quarterly dividend from $0.37 to $0.38 per share. Since CSCO also approved a $15 billion share repurchase authorization, I'm okay with the dividend increase coming in below my expectation of $0.39 per share.

Across my 11 shares of CSCO, my net annual forward dividends edged $0.44 higher as a result of the dividend announcement.

Dividend Increase #8: T. Rowe Price Group (TROW)

Another dividend increase that I received during the month came from T. Rowe Price Group. TROW announced an 11.1% increase in its quarterly dividend from $1.08 to $1.20 per share. This came in just above my prediction of a raise to $1.19 per share. TROW is yet another wonderful dividend growth stock that I'm glad to have in my portfolio.

My net annual forward dividends were boosted $2.40 higher due to my five shares of TROW at the time of the dividend announcement.

Dividend Increase #9: Allstate (ALL)

The ninth dividend increase that I benefited from in February was from Allstate. ALL declared a 4.9% increase in its quarterly dividend from $0.81 to $0.85 per share, which was below my forecast of a raise to $0.86 per share. But since the stock announced a 50% increase in its quarterly dividend last year (before I owned the stock), I'm fine with a lesser dividend growth rate this year.

Across my five shares of ALL, my net annual forward dividends increased by $0.80 as a result of the dividend announcement.

Dividend Increase #10: 3M (MMM)

Another dividend increase that I received during the month came from 3M. MMM announced a 0.7% increase in its quarterly dividend from $1.48 to $1.49 per share. This was below my prediction of a bump to $1.56 per share, but I'm fine with the company being cautious as it works to resolve the ongoing litigation against it.

My net annual forward dividends advanced $0.16 higher across my four shares of MMM due to the dividend announcement.

Dividend Increase #11: Medical Properties Trust (MPW)

The eleventh dividend increase that I benefited from in February was from Medical Properties Trust. MPW declared a 3.6% increase in its quarterly dividend from $0.28 to $0.29 per share. This was in line with my expectation.

Across my 25 shares of MPW, my net annual forward dividends were boosted by $1.00 as a result of the dividend announcement.

Dividend Increase #12: Coca-Cola (KO)

Another dividend increase that I received during the month came from Coca-Cola. KO announced a 4.8% increase in its quarterly dividend from $0.42 to $0.44 per share. KO's raise wasn't spectacular, but it was an acceleration from recent years and I'd expect that to continue for the foreseeable future. I'm happy to have recently opened a position in the stock.

My net annual forward dividends increased by $0.80 across my 10 shares of KO due to the dividend announcement.

Dividend Increase #13: PepsiCo (PEP)

The thirteenth dividend increase that I benefited from in February was from PepsiCo. PEP declared that it will be increasing its quarterly dividend payable in June by 7% from $1.075 to $1.15 per share. This is a solid dividend increase from PEP, which is exactly why I'm going to be looking to build my position out in the years ahead.

Across my three shares of PEP, my net annual forward dividends edged $0.90 higher as a result of the dividend announcement.

Dividend Increase #14: Shell (SHEL)

The final dividend increase that I received during the month came from Shell. SHEL announced a 4.2% increase in its quarterly dividend from $0.48 to $0.50 per share (dividend amount for its ADL listed shares).

My net annual forward dividends were bumped up by $0.72 across my nine shares of SHEL due to the dividend announcement.

Dividend Cut: AT&T (T)

AT&T declared a long-awaited cut in its dividend. The annualized dividend per share will fall from $2.08 to $1.11. However, factoring in the 0.24 shares of Warner Bros Discovery that shareholders will receive for every share of T that they own, the cut won't be as steep. Now that T will be back to being a pure-play telecom stock, I will likely sell my shares of Warner Bros Discovery to add to my position in T.

But as it stands right now, my net annual forward dividends dropped $20.37 across my 21 shares of T as a result of the announcement.

Dividend Freeze: Omnicom (OMC)

Omnicom announced that it was keeping its quarterly dividend steady at $0.70 per share. This came as a surprise to me considering that I was expecting a raise to $0.75 per share. But maybe Omnicom is simply being conservative in an uncertain environment with all that's currently going on. That's why I think the stock will eventually raise its quarterly dividend to $0.75 per share this year.

Yet To Be Announced: Digital Realty Trust (DLR)

Digital Realty Trust hasn't declared its new dividend (as of Feb. 28) that will be paid in the second quarter of this year. But I do suspect that the stock will be doing so sometime in the first few days of March. Thus, I'll include the amount of the dividend increase on the next post of this series.

Expected Dividend Increases for March 2022

Expected Dividend Increase #1: Realty Income (O)

The first dividend increase that I'm anticipating in March is from Realty Income. True to form, I believe that O will announce a 0.2% raise in its monthly dividend from $0.2465 to $0.2470 per share.

Across my 13 shares of O, my net annual forward dividends would inch $0.078 higher, if my prediction is proven to be correct.

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

The next dividend increase that I'm expecting next month will be from W.P. Carey. I anticipate that WPC will declare a 0.3% increase in its quarterly dividend from $1.055 to $1.058 per share. 

My net annual forward dividends would increase by $0.084 across my seven shares of WPC, if my forecast is right.

Expected Dividend Increase #3: American Tower (AMT)

The third dividend increase that I'm predicting in March is from American Tower. My guess is that AMT will announce a 2.9% increase in its quarterly dividend from $1.39 to $1.43 per share. While this sounds low, it's important to remember that AMT raises its payout to shareholders each quarter.

Across my three shares of AMT, my net annual forward dividends would be $0.48 higher, if my estimate is accurate.

Expected Dividend Increase #4: Williams-Sonoma (WSM)

The next dividend increase that I'm anticipating next month will be from Williams-Sonoma. I believe that WSM will declare a 9.9% increase in its quarterly dividend from $0.71 to $0.78 per share because it has plenty of room to grow.

My net annual forward dividends would be boosted by $2.52 across my nine shares of WSM, if my prediction is correct.

Expected Dividend Increase #5: General Dynamics (GD)

The fifth dividend increase that I'm expecting in March is from General Dynamics. I think that GD will announce a 7.6% increase in its quarterly dividend from $1.19 to $1.28 per share. That's because the stock has the flexibility to grow its dividend and 5% earnings growth is forecasted for this year.

Across my four shares of GD, my net annual forward dividends would increase by $1.44, if my forecast is right.

Expected Dividend Increase #6: Medifast (MED)

The last dividend increase that I'm predicting next month will be from Medifast. Since analysts are anticipating 11.2% earnings growth this year, I believe MED will declare an 11.3% increase in its quarterly dividend from $1.42 to $1.58 per share.

My net annual forward dividends would be boosted by $2.56 across my four shares of MED, if my estimate is accurate.

Concluding Thoughts:

Even with the dividend cut from T and OMC's dividend freeze, my net annual forward dividends moved $2.47 higher during the month of February. At a weighted average yield of 3.5%, this would require $70.57 in fresh capital to replicate.

Looking ahead to March, my net annual forward dividends would increase by $7.162, if each of my predictions are proven to be correct. This would take $204.63 of my own capital to match, assuming a 3.5% weighted average dividend yield.

Discussion:

How was your February 2022 for dividend announcements?

Are you expecting any first-time payout increases in your portfolio like I am with MED?

Thanks for your readership and I welcome your comments in the section below!