Expected Dividend Increases for August 2022

As I'm writing this blog post, the temperature here in Central Wisconsin is 90 degrees Fahrenheit and it feels like it is 94. The good news, however, is that the high temperatures will dip down into the high-70 degrees Fahrenheit to low-80 degrees Fahrenheit range starting on Sunday. 

With that aside, there is barely a week left in July. That means it's time to check out the dividend increases in my portfolio for the month and look ahead to what I'm expecting for August.

Actual Dividend Increases for July 2022

Dividend Increase #1: Enterprise Products Partners (EPD)

Enterprise Products Partners announced a solid 2.2% increase in its quarterly distribution per unit to $0.475. This is exactly what you'd come to expect from a high-quality midstream company. And it doesn't hurt that the stock offers a 7%-plus distribution yield to boot.

Across the 36 units of EPD that I own, this boosted my net annual forward distributions by $1.44 due to the distribution announcement.

Dividend Increase #2: Cummins (CMI)

Cummins declared an 8.3% increase in its quarterly dividend per share to $1.57. This came in just above my projection of a 7.6% raise in the quarterly dividend per share to $1.56. This was the first boost in my net annual forward dividends from CMI since I purchased the stock. And I believe it will be the first of many more.

My net annual forward dividends surged $2.40 higher across my five shares of CMI as a result of the payout raise.

Dividend Increase #3: Clorox (CLX)

Clorox announced a 1.7% bump in its quarterly dividend per share to $1.18. This was a bit above the $1.17 quarterly dividend per share announcement that I was forecasting. CLX's first dividend increase for me was light. But once the business has rebounded over the next few years, I expect dividend growth to meaningfully accelerate.

Across my two shares of CLX, my net annual forward dividends inched $0.16 higher due to the dividend raise.

Dividend Increase #4: Duke Energy (DUK)

Duke Energy declared a 2% increase in its quarterly dividend per share to $1.005. This was well below my prediction of a 5.1% raise in the quarterly dividend per share. DUK's raise was disappointing, but there's nothing wrong with being conservative. The company always has the option of making up for its low raise in future years.

My net annual forward dividends edged upward by $0.48 across my six shares of DUK as a result of the dividend lift.

Dividend Increase #5: National Retail Properties (NNN)

National Retail Properties announced a 3.8% raise in its quarterly dividend per share to $0.55. This was precisely what I was projecting, which is a great raise for a high-yielding REIT.

Across my 12 shares of NNN, my net annual forward dividends increased by $0.96 due to the dividend announcement.

Dividend Increase #6: J.M. Smucker (SJM)

J.M. Smucker declared a 3% bump in its quarterly dividend per share to $1.02. This came in slightly lower than the 5.1% raise that I was expecting. But the stock's 10% raise in the prior year compensates for this in my opinion. 

My net annual forward dividends rose by $0.36 across my three shares of SJM as a result of the payout raise.

Dividend Increase #7: Wells Fargo (WFC)

Wells Fargo boosted its quarterly dividend per share by 20% to $0.30.

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

Dividend Increase #8: Energy Transfer (ET)

Energy Transfer announced a 15% increase in its quarterly distribution per unit to $0.23. The company is continuing to make significant progress in restoring its quarterly distribution per unit to $0.305.

My net annual forward distributions were boosted by $7.20 across my 60 units as a result of the payout hike.

Dividend Increase #9: Hershey

Hershey announced a 15% raise in its quarterly dividend per share to $1.036. This was well above the 9.2% raise that I was expecting.

Across my three shares, this increased my net annual forward dividends by $1.62.

Expected Dividend Increases for August 2022

Expected Dividend Increase #1: Altria Group (MO)

The first dividend raise that I'm expecting in August is from Altria Group. With mid-single-digit annual earnings growth set to continue over the next several years for the stock, I believe MO will announce a 4.4% raise in its quarterly dividend per share to $0.94.

If right, my net annual forward dividends would spike $3.84 higher across my 24 shares of MO as a result of the payout hike.

Expected Dividend Increase #2: BP plc (BP)

The other payout increase that I'm anticipating next month will be from BP. I believe that the company will announce a 3.8% raise in its quarterly dividend per share to $0.335.

Across my 11 shares, my net annual forward dividends would be boosted by $0.546 by such a dividend announcement.

Expected Dividend Increase #3: Essential Utilities (WTRG)

I'm still awaiting a dividend raise from Essential Utilities. Since WTRG will be reporting its second quarter earnings on the first Wednesday of August, I believe that will be the date that the company actually announces its raise. But I am maintaining my projection of a 7.2% hike in the quarterly dividend per share to $0.2875 in the final week of the month.

My net annual forward dividends would be bumped up by $0.772 across my 10 shares of WTRG if my prediction comes to fruition.

Concluding Thoughts:

I received $16.22 in dividend increases from nine of my holdings for the month. This would be the equivalent of investing $463.43 of fresh capital at a net dividend yield of 3.5%.

Dividend raises will slow down for my portfolio in August. But I believe that MO will more than make up for it.

Discussion:

How was your July 2022 for dividend raises?

Did you get any first-time payout hikes like I did with CMI, CLX, DUK, and HSY (as well as the increase that I'm still expecting from WTRG)?

Thanks for reading and I look forward to your comments below!

August 2022 Dividend Stock Watch List

As I'm writing this blog post, the high temperature is expected to reach 72 degrees Fahrenheit today here in Central Wisconsin. And over the next few days, the temperatures will range from the high-70 degrees Fahrenheit to low-80 degrees Fahrenheit. This is truly perfect weather, which makes it very pleasant to be outside.

With half of July behind us already, I'll be looking ahead a few weeks to potential dividend stocks to purchase in August 2022.

Image Source: Pexels

Dividend Stock #1: National Retail Properties (NNN)

National Retail Properties is the first dividend stock on my watch list for August. As I noted in a Motley Fool article on the stock and Simon Property Group a few weeks ago, NNN is a high-quality single-tenant net lease REIT.

The company's thousands of properties throughout the U.S. and its resilient business model have allowed it to raise its dividend for 33 consecutive years. This is after the most recent 3.8% dividend increase that was announced today, July 15.

And given its mid-60% dividend payout ratio, NNN should be able to keep the dividend increases coming for many more years. Best of all, the stock's 5% dividend yield can be snatched up at a forward price-to-AFFO-per-share ratio of just over 14 (based on the $44 share price as of July 15, 2022).

Dividend Stock #2: Visa (V)

The next dividend stock I'm considering purchasing next month is Visa. For an in-depth explanation of why Visa is on my watch list, I'd refer interested readers to my Motley Fool article on the stock from early June.

V continued to deliver double-digit net revenue and earnings growth when it reported its earnings results for the first quarter a while back. Since cash will continue to be displaced by alternative payment methods, this should enable high earnings growth to continue for the next decade or more. 

Along with V's dividend payout ratio in the low-20% range, this should translate into robust dividend growth in the years to come. And at a forward P/E ratio a bit over 29 (based on the $210 share price as of July 15, 2022), V is priced to create significant wealth over the long run.

Dividend Stock #3: Texas Instruments (TXN)

The final dividend stock that I'm thinking about buying in August is Texas Instruments. As I explained in a Motley Fool article on the stock (and Norfolk Southern and McDonald's), TXN will benefit from a positive industry outlook.

Growing demand for semiconductor chips will help TXN's earnings to grow in the high-single-digits to low-double-digits annually. Along with the stock's well-covered 2.9% dividend yield, this makes TXN a solid stock for income, income growth, and total returns.

The stock can be purchased at a forward P/E ratio of just below 18 (based on the $160 share price as of July 15, 2022), which is a solid value for a stock of TXN's quality.

Concluding Thoughts:

August should be another month of capital deployment around $2,500 to $3,000. My dividend stock purchases as of late are a decent balance of high-yield, low growth dividend stocks, moderate-yield, moderate growth dividend stocks, and low-yield, high growth dividend stocks in my opinion.

Discussion:

Are any of NNN, V, or TXN on your watch list for next month?

If not, what stocks are you considering buying in August 2022?

As always, I appreciate your readership. Please feel free to comment below!

A Major Milestone Has Been Achieved

As I'm writing this blog post, the temperature here in Central Wisconsin is reaching into the high-70 degrees Fahrenheit range. And these ideal temperatures are anticipated to last into the next few days. That's why I will aim to get outside as much as I can this weekend!

Equally as important, my dividend growth stock portfolio just reached a milestone. I'll detail what that milestone was and a couple of takeaways from it.

The First Takeaway: Annual Forward Dividend Income Accomplishments Are Getting Faster and Faster

My annual forward dividend income surpassed $3,000 at the start of July 2022. And experience has taught me that annual forward dividend income is very much the snowball rolling down the hill analogy that many have used before me. 

For context, it took me two and a half years to go from $0 in annual forward dividend income in August 2017 to $1,000 in March 2020. It took just a year and a half to reach $2,000 from that point in September 2021. And my most recent achievement clocked in at just 10 months to top $3,000 in annual forward dividend income.

Just as impressive is the fact that my annual forward dividend grew by $7.014 from dividend increases alone in June 2022. This was more than the double the $3.15 in net dividends collected in October 2017 - - my first month of being paid dividends.

The Second Takeaway: Every Extra $1,000 Provides Even More Motivation

What makes dividend growth investing especially great is that it is self-reinforcing. That is, the more success you have with the strategy through deploying fresh capital, reinvesting dividends, and receiving payout raises, you also aim higher.

And the success of the strategy has also allowed me to stay the course during market crashes like the COVID-19 induced bear market and the bear market that happened this year.

Concluding Thoughts:

I'm very blessed to have exceeded $3,000 in annual forward dividend income after four years and 10 months to the day that I made my first dividend stock purchases on September 5, 2017. With my undergraduate years behind me and my total net income rising with each quarter, the next $1,000 increments should come slightly faster than the 10 months it took me to move from $2,000 to $3,000 in annual forward dividend income.

Discussion:

What was your most recent dividend growth stock milestone?

Are you taking full advantage of the market downturn that has occurred in 2022?

As usual, thanks for reading. Please feel free to leave a comment below!

June 2022 Dividend Income

As I'm writing this blog post, the high temperatures here in Central Wisconsin are expected to reach into the mid-70 to high-70 degrees Fahrenheit range over the next few days. As a result of this flawless weather, I will be getting outside as much as possible this Independence Day weekend.

With that aside, I will be discussing the dividend income that my portfolio produced during June 2022.

Analysis:

During the month of June 2022, I received $332.86 in net dividends. Compared to the $302.53 in net dividends that I collected in March 2022, this is a 10% growth rate over the prior quarter.

Against June 2021's net dividends amount of $197.54, this is an astonishing 68.5% year-over-year growth rate.

Diving into more details, I received $242.80 in net dividends from 44 stocks in my Robinhood portfolio. I also collected $75.43 in net dividends from my Capital Income Builder (CAIBX) mutual fund within my retirement account. My net dividends received from my Webull portfolio were $14.15 from six stocks. And last but not least, I collected $0.48 in net dividends from 23 stocks in my M1 Finance account.

The $30.33 quarterly increase in my net dividends received from March 2022 to June 2022 were due to the following activity in my portfolio:

My net dividends collected from Main Street Capital (MAIN) surged $1.16 higher within my Robinhood account (including special dividends), which was the result of my decision to purchase four more shares back in May.

I received an extra $5.40 in net dividends from Simon Property Group (SPG) in my Robinhood portfolio. This was due to my addition of three more shares last month and the recent 3% increase in the quarterly dividend.

My net dividends collected from PepsiCo (PEP) within my Robinhood account increased by $1.37. This was the result of my purchase of a share back in May. 

I received an additional $3.66 in net dividends from Digital Realty Trust (DLR) in my Robinhood portfolio, which was because of my decision to add three shares to my position in May.

My net dividends collected from Union Pacific (UNP) were $0.36 higher within my Robinhood account, which was due to the 10.2% raise in the dividend recently.

I received an extra $0.40 in net dividends from UnitedHealth Group (UNH) in my Robinhood and Webull portfolios. This was the result of the 13.8% boost to its quarterly dividend last month.

My net dividends collected from Shell (SHEL) were $0.18 higher within my Robinhood account, which was because of the 4.2% dividend increase back in March.

I received an additional $4.88 in net dividends from BlackRock (BLK) in my Robinhood portfolio. This was driven by my decision to pick up another share of BLK in April. 

My net dividends collected from Home Depot (HD) increased by $1.90 within my Robinhood account, which was due to my purchase of another share in April.

I received an extra $0.98 in net dividends from Duke Energy (DUK) in my Robinhood portfolio. This was because of an extra share that I added back in February.

My net dividends collected from Raytheon Technologies (RTX) were $0.28 higher within my Robinhood account, which was the result of the stock's 7.8% dividend hike in April.

I received an additional $0.01 in net dividends from Realty Income (O) in my Robinhood portfolio. This was due to the stock's 0.2% increase in the monthly dividend in March. 

My net dividends collected from KeyCorp (KEY) were boosted by $3.32 within my Robinhood account, which was because of my decision to add 17 shares of the stock to my position in May.

I received an extra $3.83 in net dividends from NextEra Energy (NEE) in my Robinhood portfolio. This was due to my dividend stock purchases in March and April. 

My net dividends collected from International Business Machines (IBM) were $0.04 higher within my Robinhood account. This was the result of the stock's 0.6% dividend increase in April.

I received an additional $0.35 in net dividends from Johnson & Johnson (JNJ) in my Robinhood portfolio, which was because of the stock's 6.6% bump in its quarterly dividend in April.

My net dividends collected from Southern (SO) were $0.10 higher within my Robinhood account. This was due to the stock's 3% dividend raise in its quarterly dividend in April.

I received an extra $1.45 in net dividends from Cummins (CMI) in my Robinhood portfolio, which was the result of my purchase of an extra share in May.

My net dividends collected from American Water Works (AWK) were $0.21 higher within my Robinhood account. This was because of the stock's 8.7% dividend hike that was announced in April.

I received $0.03 less in net dividends in my M1 Finance portfolio, which was due to the timing of Fastenal's (FAST) dividend payment.

My net dividends collected from CAIBX were $0.48 higher. This was due to my extra shares in the mutual fund compared to March.

Concluding Thoughts:

My net dividends continue to steadily grow with each passing quarter. Given my consistent capital deployment of around $3,000 each month, I wouldn't be surprised if my net dividends were close to $500 received in June 2023.

Those brave signers of the Declaration of Independence who pledged their lives, fortunes, and sacred honor were the spark that led to the birth of this country. And the brave men and women who have fought to protect our freedoms are what allowed so many to achieve their version of the American dream over the generations!

I'm very blessed to be living in the United States of America. The progress I have made in building my dividend growth stock portfolio wouldn't have otherwise happened to the extent that it has if I lived in any other country.

Discussion:

How was your month for dividend income?

Did you receive any first-time dividends during the month?

Thanks for reading. I look forward to your comments below!