Expected Dividend Increases for November 2022

As I'm writing this blog post, the temperature is expected to reach a high of 76 degrees Fahrenheit today (Saturday, October 22) here in Central Wisconsin. And with the next few days set to be about as warm, I am itching to get outside for at least a few hours between now and then.

Given that we're nearing the end of October, it's time to look at the dividend raises that I received for the month. And it would be fitting to also go over the dividend hikes that I'm expecting for next month.

Actual Dividend Increases for October 2022

Dividend Increase #1: Tanger Factory Outlet Centers (SKT)

Tanger Factory Outlet Centers announced a 10% hike in its quarterly dividend per share to $0.22. This was a raise that I wasn't actually expecting. But SKT's fundamentals are solid, so I don't believe the raise was unjustified.

Across my 11 shares of SKT, my net annual forward dividends surged $0.88 higher due to this dividend announcement.

Dividend Increase #2: A.O. Smith (AOS)

A.O. Smith declared a 7.1% increase in its quarterly dividend per share to $0.30. Even though AOS has historically raised its dividend in October, I likely missed it because I had just opened a position back in April. That's not too shabby of a payout hike in this environment in my opinion.

This dividend declaration lifted my net annual forward dividends by $0.96 across my 12 shares of AOS.

Dividend Increase #3: McDonald's (MCD)

McDonald's hiked its quarterly dividend per share by 10.1% to $1.52, which was moderately more than the 7.2% raise to $1.48 that I was anticipating. That's one heck of a first-time raise from MCD, which I suspect will be the first of many more.

Across my three shares of MCD, my net annual forward dividends were boosted by $1.68 as a result of this dividend announcement.

Dividend Increase #4: Crown Castle International (CCI)

Crown Castle International declared a 6.5% increase in its quarterly dividend per share to $1.565. This was a bit lower than the 8.2% increase to $1.59 that I was projecting. Overall, that's still not a bad raise.

This dividend declaration led my net annual forward dividends higher by $1.52 across my four shares of CCI.

Dividend Increase #5: Magellan Midstream Partners (MMP)

Magellan Midstream Partners announced a 1% bump in its quarterly distribution per unit to $1.0475, which was what I forecasted. It doesn't take much of a raise from an ultra-high-yielding blue chip like MMP to make me happy, so I was content with this raise for sure.

Across my 16 units of MMP, my net annual forward distributions edged upward by $0.64 due to this announcement.

Dividend Increase #6: Pinnacle West Capital (PNW)

Pinnacle West Capital declared a 1.8% increase in its quarterly dividend per share to $0.865. This was just below the raise to $0.87 that I was predicting.

This dividend declaration inched my net annual forward dividends higher by $0.42 across my seven shares of PNW.

Dividend Increase #7: American Electric Power (AEP)

American Electric Power announced a 6.4% increase in its quarterly dividend per share to $0.83. 

My net annual forward dividends surged $2.20 higher across my 11 shares of AEP.

Dividend Increase #8: Visa (V)

V announced a 20% hike in its quarterly dividend per share to $0.45. This came in well above my expectation of a 14.7% boost to the dividend.

Across my five shares of V, my net annual forward dividends increased by $1.50.

Dividend Increase #9: Exxon Mobil (XOM)

Exxon Mobil declared a 3.4% increase in its quarterly dividend per share to $0.91. This was just below my expectation of a raise to $0.92. But given the volatility of the industry and the need to not draw more negative political attention to itself amid the high gas prices, XOM's conservatism makes sense.

As a result of the payout bump, my net annual forward dividends were lifted $1.32 higher across my 11 shares of XOM.

Dividend Increase #10: AbbVie (ABBV)

AbbVie announced a 5% hike to its quarterly dividend per share to $1.48, which was a bit lower than my forecast of a raise to $1.50. With Humira losing exclusivity in the U.S. in just a few months, it's probably better to be on the safe side with an increase rather than to be too generous.

Across my seven shares of ABBV, my net annual forward dividends surged $1.96 higher due to the dividend boost.

Dividend Increase #11: Energy Transfer (ET)

Energy Transfer declared a 15.2% increase in its quarterly distribution per unit to $0.265. ET is steadily making progress in restoring its quarterly distribution per unit to $0.305. In fact, the company will likely do just that with its next distribution hike.

My net annual forward distributions soared $12.04 higher across my 86 units of ET as a result of the distribution boost.

Expected Dividend Increases for November 2022

Expected Dividend Increase #1: Main Street Capital (MAIN)

The first dividend raise that I'm expecting in November will be from Main Street Capital. I expect a 2.3% increase in the monthly dividend per share to $0.225.

If this prediction proves to be correct, my net annual forward dividends would be boosted by $1.44 across my 24 shares of MAIN.

Expected Dividend Increase #2: Simon Property Group (SPG)

The next dividend bump I'm anticipating next month is from Simon Property Group. I believe that SPG will announce a 2.9% raise in its quarterly dividend per share to $1.80.

Across my nine shares of SPG, my net annual forward dividends would be lifted $1.80 higher, if this raise manifests itself.

Expected Dividend Increase #3: Realty Income (O)

The third dividend hike that I'm projecting in November will be from Realty Income. I predict that O will declare a 4% increase in its monthly dividend per share to $0.2580.

If this pans out, my net annual forward dividends would surge $1.56 higher across my 13 shares of O.

Expected Dividend Increase #4: Merck (MRK)

The next dividend raise that I'm expecting next month is from Merck. My best guess is that MRK will announce a 5.8% hike in its quarterly dividend per share to $0.73.

Across my 11 shares of MRK, my net annual forward dividends would increase by $1.76 from such a raise.

Expected Dividend Increase #5: KeyCorp (KEY)

The fifth payout bump that I'm anticipating in November will be from KeyCorp. I believe that KEY will declare a 5.1% raise in its quarterly dividend per share to $0.205.

If this is proven right, my net annual forward dividends would be boosted by $1.56 across my 39 shares of KEY.

Expected Dividend Increase #6: Aflac (AFL)

The next dividend hike that I'm projecting next month is from Aflac. I predict that AFL will announce a 7.5% increase in its quarterly dividend per share to $0.43.

Across my 11 shares of AFL, my net annual forward dividends would be lifted by $1.32 from this dividend raise.

Expected Dividend Increase #7: Mastercard (MA)

The seventh dividend increase that I'm expecting in November will be from Mastercard. MA may revert to its pre-2021 pattern of declaring a dividend hike in December rather than November. But regardless, my best guess is that MA will declare a 12.2% boost in its quarterly dividend per share to $0.55.

If this turns out to be accurate, my net annual forward dividends would increase by $0.72 across my three shares of MA.

Concluding Thoughts:

The 11 dividend increases that I received in October have boosted my net annual forward dividends by $25.12. This is equivalent to investing $717.71 in fresh capital at a 3.5% weighted average dividend yield.

Looking ahead to next month, my net annual forward dividends would soar $10.16 higher, if my predictions are on point.

Discussion:

How was your October 2022 for dividend increases?

Did you receive any first-time hikes from your holdings as I did with AOS, MCD, and CCI?

I appreciate your readership and welcome your comments below!

November 2022 Dividend Stock Watch List

As I'm writing this blog post, it's snowing here in Central Wisconsin. But since the temperature is 38 degrees Fahrenheit, the snow is luckily melting before it hits the ground. Hooray to no snow cover!

With that aside, it's already mid-October. That means it's probably a good idea to look ahead to the stocks that I will consider buying in November. Here are the three that are looking most favorable for my investment goals at this time.

Image Source: Pexels

Dividend Stock #1: Realty Income (O)

The first stock on my watch list is none other than Realty Income (O). For readers seeking a more in-depth explanation of why I like O so much, I would refer them to my Motley Fool article from earlier this month on the stock (as well as Procter & Gamble and Magellan Midstream Partners).

Basically, O has immense scale and it only acquires the best properties. The company also has plenty of room for future growth and pays a well-covered 5.3% dividend yield. Yet it is trading at a forward price-to-AFFO-per-share ratio just over 14 at the current $56 share price (as of October 14, 2022). This should provide a compelling combination of income and low-double-digit annual total return potential over the long haul.

Dividend Stock #2: Medical Properties Trust (MPW)

Medical Properties Trust (MPW) is the other REIT that's on my watch list for the month. Readers looking for a more complete rationale on why I like MPW should check out my recent Motley Fool article on MPW (and W.P. Carey).

There are concerns about the financial condition of MPW's largest tenant, Steward Health Care System, which comprises 27.8% of the company's total annualized base rent (page 32 of 51 of MPW's recent 10-Q). But I am confident that the tenant will recover in the quarters ahead. And even if the tenant doesn't, this risk appears to be more than priced in at the current $11 share price. That's because MPW is trading at a valuation of less than eight times its trailing-twelve-month AFFO per share.

Dividend Stock #3: Microsoft (MSFT)

The final stock rounding out my watch list for November is Microsoft (MSFT). With its Office suite of products, Azure cloud computing service, professional networking website and app LinkedIn, and video gaming brand Xbox, MSFT has something of use for everyone: Businesses, individuals, and governments.

Given its diversified and recurring streams of revenue, it shouldn't be surprising that analysts are anticipating 14.9% annual adjusted diluted EPS growth over the next five years from MSFT. Along with its low dividend payout ratio, this should fuel plenty of dividend growth moving forward.

And shares of the stock can be scooped up at a forward price-to-earnings (P/E) ratio of just 22.6 at the current $228 share price. That's not an excessive valuation to pay for arguably one of the top five to top 10 businesses on the planet.

Concluding Thoughts:

Before we know it, October will be in the books. I'll have added to my positions in Comcast (CMCSA) and Medifast (MED), as well as opened a stake in Stag Industrial (STAG) by that point. And I'm looking forward to likely bolstering my ownership in O, MPW, and MSFT in November.

Discussion:

Are any of O, MPW, and/or MSFT on your watch list for November?

If not, what stocks are you considering buying next month?

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

September 2022 Dividend Income

As I'm writing this blog post, the temperature has dipped to a high of just 48 degrees Fahrenheit on Friday, October 7, here in Central Wisconsin. The good news is that temperatures will reach into the high-60 degrees Fahrenheit over the next several days.

With that aside, I'll detail the dividend income that my portfolio generated during September 2022.

During the month of September 2022, I collected $343.64 in net dividends. Against the $332.86 in net dividends that I received in June 2022, this is a 3.2% quarterly growth rate.

Stacked up to the $229.54 in net dividends collected for September 2021, this equates to a 49.7% year-over-year growth rate.

Digging deeper, I received $252.81 in net dividends from 44 stocks in my Robinhood portfolio. I also collected $75.94 in net dividends from my Capital Income Builder (CAIBX) mutual fund within my retirement account. My net dividends received from six stocks in my Webull portfolio amounted to $14.40. Finally, I received $0.49 from 23 stocks within my M1 Finance account.

The $10.78 quarterly increase in my net dividends collected from June 2022 to September 2022 was the result of the following activity in my portfolios:

My net dividends received from Simon Property Group (SPG) were $0.45 higher within my Robinhood account. This was due to the 2.9% raise in the quarterly dividend per share announced in August.

I also collected an additional $0.60 in special dividends from Main Street Capital (MAIN) during the month in my Robinhood portfolio.

My net dividends received from BP plc (BP) edged $0.36 higher within my Robinhood account, which was the result of the company's 10.1% hike to its quarterly dividend per share in August.

I also collected an extra $0.12 in net dividends from Duke Energy (DUK) for the month in my Robinhood portfolio. This was due to a 2% increase in the quarterly dividend per share back in July.

My net dividends received from Hershey (HSY) increased by $0.41 within my Robinhood account, which was the result of a 15% boost to its quarterly dividend per share in July.

I also collected an additional $0.01 in net dividends from Realty Income (O) in my Robinhood portfolio. This was due to the 0.2% increase in its monthly dividend per share announced in June.

My net dividends received from 3M (MMM) were $2.98 higher within my Robinhood account, which was the result of my purchase of two more shares in June.

I also collected an extra $3.30 in net dividends from International Business Machines (IBM) in my Robinhood portfolio. This was due to the addition of two more shares back in June.

My net dividends received from J.M. Smucker (SJM) increased by $0.09 within my Robinhood account, which was the result of a 3% raise in the quarterly dividend per share in July.

I also collected an additional $0.19 in net dividends from Essential Utilities (WTRG) in my Robinhood portfolio. This was due to the 7% hike in the quarterly dividend per share in August.

My net dividends received from Visa (V) within my Robinhood account were $0.75 higher, which was the result of my purchase of two more shares in August.

I also collected an extra $0.61 in net dividends from Cummins (CMI) in my Robinhood and M1 Finance portfolios. This was the result of an 8.3% raise in the quarterly dividend per share in July.

My net dividends received from Wells Fargo (WFC) increased by $0.40 within my Robinhood and Webull accounts, which was due to a 20% boost in the quarterly dividend per share in July.

I collected an additional $0.51 in net dividends from my CAIBX mutual fund, which was the result of dividend reinvestment.

Concluding Thoughts:

As I reinvest dividends, receive payout raises, and deploy capital of my own, my net dividends should continue to climb higher. I'm excited to keep grinding and boosting that dividend income higher with each passing quarter. Considering that December will have special dividends from my CAIBX mutual fund and March is still a ways off, this will likely be my last end of quarter month under $400 in net dividends.

Discussion:

How was your September 2022 for dividend income?

Did you collect any first-time dividends last month?

I appreciate your readership and welcome your comments below!

September 2022 Dividend Stock Purchases

As I'm writing this blog post, the high temperature is expected to reach 68 degrees Fahrenheit here in Central Wisconsin today (September 30). After a cold snap, the temperatures are finally looking good over the next few days. Needless to say, I will be getting outside as much as I can during that time.

With that aside, I'll be going over my stock purchases for the month of September 2022.

My retirement account from my former employer with the mutual fund holding Capital Income Builder (CAIBX) paid $75.94 in net dividends to me, which were reinvested. This purchased 1.199 additional shares, which added $2.55 in net annual forward dividends to my portfolio. That is equal to a 3.36% weighted average dividend yield.

I began my taxable dividend stock purchases by adding a share of Albemarle (ALB) at a cost of $277.21. As I explained several weeks back in my September 2022 Dividend Stock Watch List post, ALB is poised to benefit from a massive expansion in the electric vehicle penetration rate over the next decade. This will lead to an explosion of demand for lithium that goes into EV batteries, which is primarily why I am bullish on the stock. This dividend stock transaction lifted my net annual forward dividends by $1.58, which is a 0.57% net yield.

The first non-dividend-paying stock that I increased my position in was Amazon (AMZN), which I purchased a single share of at the price of $116.89. As I noted a couple of weeks ago in my August 2022 Dividend Stock Purchases post, AMZN is the undisputed leader in cloud computing and e-commerce. This is why I plan to continue buying a share of AMZN each month for the foreseeable future.

The other non-dividend-paying stock that I bolstered my stake in was Alphabet (GOOGL), which I bought 1.5 shares of at an average cost of $99.93 per share. Whereas AMZN is the leader of the cloud computing and e-commerce industries, GOOGL is the most dominant in digital advertising. That explains my rationale to buy the stock each month.

The second dividend-paying stock that I purchased was five shares of Bristol-Myers Squibb (BMY) at a cost per share of $70.22. That's because it is one of the most dominant pharmaceutical companies in the world with a stacked drug pipeline. This boosted my net annual forward dividends by $10.80, which is equivalent to a 3.08% weighted average dividend yield.

The third and final dividend-paying stock that I added to was three shares of Philip Morris International (PM) at an average cost of $95.74 a share. This rationale hinges on the fact that PM is the most established tobacco company on the planet and is set up well for the future as more cigarette smokers seek less harmful alternatives. This helped my net annual forward dividends to surge $15.24 higher, which equates to a 5.31% net dividend yield.

Concluding Thoughts:

I put $1,258.25 in capital to work during the month of September. Given the $30.17 in net annual forward dividends that these transactions added to my portfolio, this works out to a 2.40% weighted average dividend yield.

Including the $20.114 in dividend increases that I have received for the month as of this afternoon, my net annual forward dividends spiked from more than $3,125 at the start of the month to a bit more than $3,175 heading into October.

Discussion:

How was your capital deployment during September 2022?

Did you add any new holdings to your portfolio?

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