Expected Dividend Increases for September 2022

As I'm writing this blog post on Friday, the high temperature is expected to reach 77 degrees Fahrenheit later today. And the next few days are going to remain around this temperature here in Central Wisconsin. That's why I plan on getting outside for at least a few hours this weekend.

With just a few days left in the month of August, now is a great time to look at the dividend raises received for the month and to look ahead to September. Since I am expecting a baker's dozen for dividend increases next month, I will cut to the chase and not elaborate on the assumptions behind my expectations for each raise.

Actual Dividend Increases for August 2022

Dividend Increase #1: Essential Utilities (WTRG)

Essential Utilities announced a 7% increase in its quarterly dividend per share to $0.2870. This was just slightly below my expectation of a 7.2% raise in the quarterly payout per share to $0.2875. Overall, I'm very happy with WTRG as a holding in the 13 months that it has been in my portfolio.

Across my 10 shares of WTRG, my net annual forward dividends edged $0.752 higher due to the dividend hike.

Dividend Increase #2: BP plc (BP)

BP plc declared a 10.1% boost in its quarterly dividend per share to $0.3606. This was far higher than the 3.8% increase to $0.3350 per share that I was anticipating. But the company has been immensely profitable the last few quarters, so it can certainly afford such a raise.

My net annual forward dividends surged $1.452 higher across my 11 shares of BP as a result of the payout hike.

Dividend Increase #3: Simon Property Group (SPG)

Simon Property Group announced a 2.9% increase in its quarterly dividend per share to $1.75, which was a raise that I wasn't expecting. That makes the slight bump that much sweeter as SPG works to restore its dividend to pre-COVID levels.

Across my nine shares of SPG, my net annual forward dividends ripped $1.80 higher due to the dividend increase.

Dividend Increase #4: Main Street Capital (MAIN)

Another bonus raise came from Main Street Capital, which inched its monthly dividend per share up 2.3% to $0.22. I have been very pleased with my position in MAIN over the last two and a half years.

My net annual forward dividends edged $1.44 higher across my 24 shares of MAIN as a result of the dividend raise.

Dividend Increase #5: Altria Group (MO)

Altria Group declared a 4.4% increase in its quarterly dividend per share to $0.94, which was precisely as I expected. MO was one of the very first dividend stocks that I purchased for my portfolio. And while the share price has been stagnant compared to my cost basis, the dividend growth has remained strong.

Across my 24 shares of MO, my net annual forward dividends soared $3.84 higher due to the payout boost.

Expected Dividend Increases for September 2022

Expected Dividend Increase #1: Realty Income (O)

The first dividend raise that I'm expecting in September will come from Realty Income. I believe O will announce a 0.2% increase in its monthly dividend per share to $0.248. 

If my prediction is correct, my net annual forward dividends would inch $0.078 higher across my 13 shares of O.

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

The next dividend increase that I'm anticipating next month will be from W.P. Carey. I'm projecting that WPC will declare a 0.2% increase in its quarterly dividend per share to $1.061.

Across my seven shares of WPC, my net annual forward dividends would increase by $0.056 if my estimation is right.

Expected Dividend Increase #3: STORE Capital (STOR)

The third dividend boost that I'm predicting in September will come from STORE Capital. It's my expectation that STOR will announce a 6.5% increase in its quarterly dividend per share to $0.41.

If this pans out, my net annual forward dividends would surge $3.30 higher across my 33 shares of STOR.

Expected Dividend Increase #4: Innovative Industrial Properties (IIPR)

The next dividend hike that I'm expecting for next month will be from Innovative Industrial Properties. I believe that IIPR will declare an 11.4% raise in its quarterly dividend per share to $1.95.

Across my six shares of IIPR, this would boost my net annual forward dividends by $4.80 if my prediction works out.

Expected Dividend Increase #5: American Tower (AMT)

The fifth dividend raise that I'm anticipating in September will come from American Tower. I'm projecting that AMT will announce a 2.8% increase in its quarterly dividend per share to $1.47.

If my projection is correct, my net annual forward dividends would edge higher by $0.48 across my three shares of AMT.

Expected Dividend Increase #6: VICI Properties (VICI)

The next payout boost that I'm predicting for next month will be from VICI Properties. I estimate that VICI will declare a 5.6% bump in its quarterly dividend per share to $0.38.

Across my 33 shares of VICI, my net annual forward dividends would be lifted by $2.64 by such a raise.

Expected Dividend Increase #7: Verizon Communications (VZ)

The seventh dividend increase that I'm expecting in September will come from Verizon Communications. I believe that VZ will announce a 2% raise in its quarterly dividend per share to $0.6525.

If this prediction is fulfilled, my net annual forward dividends would increase by $1.00 across my 20 shares of VZ.

Expected Dividend Increase #8: McDonald's (MCD)

The next payout raise that I'm anticipating for next month will be from McDonald's. I'm projecting that MCD will declare a 7.2% boost in its quarterly dividend per share to $1.48.

Across my three shares of MCD, my net annual forward dividends would be boosted by $1.20 by such a dividend increase.

Expected Dividend Increase #9: Starbucks (SBUX)

The ninth dividend increase that I'm predicting in September will come from Starbucks. I estimate that SBUX will announce an 8.2% hike in its quarterly dividend per share to $0.53.

If this is proven correct, my net annual forward dividends would be lifted $1.60 higher across my 10 shares of SBUX.

Expected Dividend Increase #10: Philip Morris International (PM)

The next payout raise that I'm expecting for next month will be from Philip Morris International. I believe that PM will declare a 0.8% increase in its quarterly dividend per share to $1.26.

Across my 13 shares of PM, my net annual forward dividends would inch $0.52 higher by this dividend announcement.

Expected Dividend Increase #11: Microsoft (MSFT)

The eleventh dividend hike that I'm anticipating in September will come from Microsoft. I'm projecting that MSFT will announce a 9.7% lift in its quarterly dividend per share to $0.68.

If this ends up being right, my net annual forward dividends would increase by $0.72 across my three shares of MSFT.

Expected Dividend Increase #12: Lockheed Martin (LMT)

The next payout raise that I'm predicting for next month will be from Lockheed Martin. I estimate that LMT will declare a 7.1% boost in its quarterly dividend per share to $3. 

Across my four shares of LMT, my net annual forward dividends would surge $3.20 higher as a result of this dividend increase.

Expected Dividend Increase #13: U.S. Bancorp (USB)

The thirteenth and final dividend increase that I'm expecting in September will come from U.S. Bancorp. I believe that USB will announce a 6.5% raise in its quarterly dividend per share to $0.49.

Assuming this is correct, my net annual forward dividends would be lifted $1.56 higher across my 13 shares of USB.

Concluding Thoughts:

I received $9.284 in dividend increases from five of my stocks during the month. This equates to investing $265.26 in fresh capital at an average net yield of 3.5%. Looking ahead to September, I am forecasting $21.154 in additional annual forward dividends stemming from dividend raises. That would be the equivalent of investing $604.40 in capital at a 3.5% net dividend yield.

As my portfolio grows larger, so too is the impact of dividend raises on my net annual forward dividends. I'm excited to continue accumulating shares of wonderful businesses to help this figure continue to grow.

Discussion:

How was your August for dividend boosts?

Are you projecting any first-time dividend raises for September like I am with IIPR, MCD, USB, and VICI?

I appreciate your readership and welcome your comments below!

A Major Net Worth Milestone And The Biggest Takeaway

As I'm writing this blog post on Friday, the rain is finally tapering off here in Central Wisconsin. And the rest of the day is expected to be sunny with a high temperature of 77 degrees Fahrenheit. The next few days are going to be more of the same weather wise. Needless to say, I'm going to get outside as much as I can while the weather is ideal.

With that aside, my net worth passed the $100,000 milestone on July 28. Here is the biggest lesson that I have learned over the past five years that I have been striving toward this moment as an investor.

The Savings Rate Is Far More Important During The Accumulation Phase

Just as Warren Buffett's right-hand man at Berkshire Hathaway named Charlie Munger put it decades ago: "The first $100,000 is a bitch, but you gotta do it." No matter how frequently used this expression is, it is a universal truth in the personal finance arena.

Unsurprisingly, that's because essentially everybody has to start from next to nothing. Simple math also tells us that even the greatest investors can't turn a modest sum of money into a fortune overnight. After all, a 100% return on $100 is still just $200.

Through the first three years of working my first real job, my annual gross income each year was less than $30,000. But I was regularly saving more than 50% of my net income, excluding the $26,000 in tuition that I paid the first two years while finishing undergrad.

This explains why my net worth back in August 2019 was around $20,000. The most mind-boggling thing to me is that my net worth was about $60,000 when I quit my day job to write for The Motley Fool in July 2021.

Over the last 13 months alone, my net worth has surged approximately 75% higher. Some of that was due to appreciation in the equity markets. But the vast majority of that spike in net worth was the result of simply earning much more net income each month to invest, which pushed my savings rate up to the 70% range. This really drives home the point that the first few hundred thousand dollars is more about your savings rate than your investment returns. And it's why I suspect that I will likely achieve a $200,000 net worth by Fall 2024.

Concluding Thoughts:

I'm grateful to be in a position to reach a net worth in excess of $100,000 at the age of 25. At this point, it will only take three doublings to bring my net worth to nearly $1 million. I look forward to actively contributing investment capital toward this end while my existing investments compound.

Discussion:

Has your net worth reached $100,000 yet? 

If so, what lessons did you learn along the way?

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

September 2022 Dividend Stock Watch List

As I'm writing this blog post, the temperature is expected to reach a high of 74 degrees Fahrenheit today. And the next week of weather looks like it will be in the mid-70 degrees to low-80 degrees Fahrenheit range here in Central Wisconsin. That's why I plan on getting outside as much as possible in the days ahead.

With August almost already half over, now is as good of a time as any to start planning a few weeks ahead for possible dividend stock purchases in September.

Image Source: Pexels

Dividend Stock #1: Albemarle (ALB)

Albemarle is a leading specialty chemicals business. The company's predominant business is lithium, which made up 55.3% of its net sales through the first half of 2022. The remaining 44.7% of its net sales was generated from its bromine and catalysts segments (info from Albemarle Q2 2022 earnings press release).

With the penetration rate of electric vehicles expected to soar from just 3.4% of all new car sales in 2021 to 29.5% by 2030, global lithium demand is going to rapidly grow for the foreseeable future. That's why analysts are forecasting 77.2% annual adjusted diluted EPS growth over the 2021 base of $4.04 for the next five years.

Trading at a forward P/E ratio of 13.3 at the current $281 share price (as of August 13, 2022), ALB appears to be a bargain. ALB's 0.6% dividend yield is minuscule. But with the company's significant growth potential in the years ahead, it should prove to be an incredible dividend growth stock.

Dividend Stock #2: Bristol-Myers Squibb (BMY)

With mega-blockbusters such as the anti-coagulant drug co-owned with Pfizer (PFE) called Eliquis and cancer drugs Revlimid and Opdivo, Bristol-Myers Squibb is one of the most dominant pharma companies in the world. As I explained in a recent Motley Fool article on Cigna and BMY, the latter also has a deep drug pipeline to propel its adjusted diluted EPS higher over time.

The stock's 2.9% dividend yield also seems to be well-covered with a dividend payout ratio set to come in under 30% in 2022. Yet the stock is a downright bargain at a forward P/E ratio of 9.4 at the current $76 share price (as of August 13, 2022).

Dividend Stock #3: Philip Morris International (PM)

Philip Morris International is the largest tobacco company in the world. And as I discussed in a recent Motley Fool article, the stock is a great buy for income investors.

That's because PM's market-smashing 5% dividend yield is reasonably safe for a tobacco company based on its dividend payout ratio. Not to mention that analysts are predicting steady adjusted diluted EPS growth over the medium term. The cherry on top is that the stock's forward P/E ratio of 16.7 at the current $99 share price (as of August 13, 2022) is a slight discount to the tobacco industry.

Concluding Thoughts:

September's capital deployment will be lighter as I build up my emergency fund. I'm continuing to strive toward a balance between low yield, high growth, moderate yield, moderate growth, and high yield, low growth dividend stocks as my purchases. I'm excited for yet another month to bring high-quality dividend growth stock purchases with it.

Discussion:

Are any of ALB, BMY, or PM on your watch list for September 2022?

If not, what stocks are you watching for next month?

As usual, thanks for reading. I look forward to your comments below!

July 2022 Dividend Income

As I'm writing this blog post, the high temperature for today is expected to reach 86 degrees Fahrenheit. Temperatures will top out tomorrow at a high of 92 degrees Fahrenheit. But then temperatures will be in the ideal low-70 degrees to low-80 degrees Fahrenheit range for a few days. 

With July 2022 having been over for nearly a week, I will be taking a look at my net dividend income for the month. The spoiler alert is that my net dividend income was yet again a record for the first month of the quarter.

Analysis:

I received $176.10 in net dividends during July 2022. This is equivalent to a 26.5% growth rate over the $139.19 in net dividends collected in April 2022.

On a year-over-year basis, my net dividends received soared 62.6% higher compared to the $108.32 in net dividends collected from my portfolio in July 2021.

Taking a deeper dive, I received $165.47 in net dividends from 26 stocks in my Robinhood account. In addition, I collected $10.48 in net dividends from five stocks within my Webull portfolio. Lastly, I received $0.15 in net dividends from seven stocks in my M1 Finance account.

My net dividends collected were boosted by $36.91 from April 2022 to July 2022, which was due to the following activity within my portfolio:

I received my first dividend payment from Comcast (CMCSA) in the amount of $4.59 in my Robinhood account, which was the result of my decision to purchase 17 shares of the stock back in April.

My net dividends collected from Cisco (CSCO) were $4.18 higher within my Robinhood portfolio, which was due to the doubling of my position to 22 shares in June.

I received an extra $0.86 in net dividends from Main Street Capital (MAIN) in my Robinhood account, which was the result of my decision to add four more shares to my stake in May.

My net dividends collected from Realty Income (O) were $0.01 higher within my Robinhood portfolio, which was due to the company's 0.2% dividend increase in June.

I received an additional $4.24 in net dividends from STORE Capital (STOR) in my Robinhood and Webull accounts, which was the result of my 11 share purchase in June.

My net dividends collected from W.P. Carey (WPC) increased by $0.01 within my Robinhood portfolio, which was due to the 0.2% dividend raise in June.

I received my first dividend payment in the amount of $10.50 from Innovative Industrial Properties (IIPR) in my Robinhood account, which was the result of my decision to open a position in the stock in April.

My net dividends collected from Medtronic (MDT) were $2.29 higher within my Robinhood portfolio, which was due to the stock's 7.9% dividend increase in May and my purchase of three extra shares in June.

I received an additional $1.56 in net dividends from Leggett & Platt (LEG) in my Robinhood account, which was the result of the 4.8% dividend increase in May and my purchase of three more shares during the month.

My net dividends collected from Medical Properties Trust (MPW) were boosted by $5.22 within my Robinhood portfolio, which was due to my purchase of 18 more shares in June.

I received a first-time dividend payment from FedEx (FDX) in the amount of $3.45 in my Robinhood account, which was the result of my dividend stock purchases in May.

My net dividends collected from American Tower (AMT) were $0.09 higher within my Robinhood portfolio, which was due to the 2.1% dividend raise in May.

I received an extra $2.28 in net dividends from Eastman Chemical (EMN) in my Robinhood account, which was the result of my purchase of three more shares in May.

My net dividends collected from GSK plc (GSK) were $2.36 less within my Robinhood portfolio, which was due to the differing dividend payment amounts and the cut ahead of the Haleon (HLN) spinoff.

I received $0.01 less in net dividends from my M1 Finance account, which was also the result of GSK's dividend announcement.

Concluding Thoughts:

Quarter in and quarter out, my net dividends are consistently increasing. Factoring in expected dividend increases and capital deployment, August 2022 is going to be my portfolio's final month of net dividend income below $200 for any given month.

Discussion:

How was your dividend income in July 2022?

Did you collect any first-time dividends as I did with CMCSA, FDX, and IIPR?

Thanks for your readership and feel free to comment below!

July 2022 Dividend Stock Purchases

As I'm writing this blog post on July 29th, it's expected to reach a high of 77 degrees Fahrenheit today while also being sunny. And temperatures won't be much hotter than that over the next couple of days here in Central Wisconsin. This perfect weather is precisely why I will be spending at least several hours outside this weekend. 

With that out of the way, the timing of the month means that it's time to check out my stock purchases for July 2022.

I started off the month of July by purchasing eight shares of VICI Properties (VICI) at an average cost of $30.02 a share. Readers interested in a more detailed explanation of this dividend stock purchase can check out my Motley Fool article on the stock and Medical Properties Trust (MPW) that was published a few weeks ago. This transaction added $11.52 in net annual forward dividends to my portfolio.

The next dividend stock that I added to during the month was Merck (MRK). I picked up an additional three shares of the stock at a cost per share of $90.83. My reasons for scooping up more shares of MRK can be found in this Motley Fool article from June on the stock and Amgen (AMGN). As a result of this purchase, my net annual forward dividends surged $8.28 higher.

I also snatched up five units of Magellan Midstream Partners (MMP) in July at an average cost of $46.62 per unit. It has been a while since I have covered MMP, but my buying rationale remains the same compared to this Motley Fool article from last December. Due to this transaction, my net annual forward distributions soared higher by $20.75.

The fourth dividend stock that I picked up during the month was British American Tobacco (BTI). I increased my position by six shares at an average cost per share of $40.43. For my rationale on executing this transaction, I would refer interested readers to my recent Motley Fool article on the stock and Leggett & Platt (LEG). As a result of this purchase, my net annual forward dividends vaulted $17.82 higher.

I also scooped up five shares of Iron Mountain (IRM) in July at an average cost of $48.32 a share. For my buying rationale on IRM and why I also like American Tower (AMT), readers can take a peek at this Motley Fool article. This purchase boosted my net annual forward dividends by $12.37.

The sixth dividend stock that I added to during the month was Mastercard (MA). I increased my position by one share at a total cost of $320.73. As I alluded to in a recently published Motley Fool article on Visa (V) and MA, the latter should continue to be an especially promising wealth compounder in the future. This helped my net annual forward dividends edge $1.96 higher.

I also picked up five more shares of ONEOK (OKE) in July at an average cost of $55.29 a share. This lifted my net annual forward dividends by $18.70.

The eighth stock that I purchased during the month was another share of Amazon (AMZN) at a cost of $110.07. As I explained a few months back, AMZN is an e-commerce, advertising, and cloud computing juggernaut. It probably won't be paying a dividend until the end of this decade or the start of next decade. But by the time it does, it will likely be at least a 5-bagger from my current cost basis.

Speaking of advertising giants, I initiated a six share position in Alphabet (GOOGL) in July at an average cost of $111.40 a share. The parent company to Google and YouTube is the undisputed leader of digital advertising. GOOGL boasted a 28.6% market share in 2021, which was meaningfully ahead of Facebook (FB) at 23.8% and AMZN at 11.3%.

This significant competitive advantage is why analysts believe GOOGL will deliver 13.7% annual earnings growth over the next five years. And at a current year P/E ratio of 21.5, the stock is trading at an attractive valuation for the long haul. Similar to AMZN, I believe GOOGL will be a powerful dividend payer in due time. In the meantime, the capital gains should be spectacular.

Concluding Thoughts:

I deployed $2,605.52 in capital during the month of July across a wide array of stocks. High growth stock purchases like AMZN, GOOGL, and MA will be grand slam dividend growers in 2030 and beyond in my opinion. And my midstream, REIT, tobacco, and pharma additions will provide both significant immediate and future income.

My stock purchases for the month added $91.40 in net annual forward dividends to my portfolio, which is a 3.51% weighted average dividend yield. Dividend increases received in July chipped in another $16.22 to my net annual forward dividends. This led my portfolio's net annual forward dividends to spike from just over $2,960 at the start of the month to a bit less than $3,070 heading into August.

Discussion:

How was your July 2022 for stock purchases?

Did you add any new holdings to your portfolio like I did with my purchase of GOOGL?

I appreciate your readership and welcome your comments below!