April 2024 Dividend Stock Watch List

As I'm writing this blog post, it's March 18th. The temperatures have cooled off considerably in the last week, with the high set to reach just 37 degrees Fahrenheit today. That's a far cry from the temperatures ranging in the 50s to 60s just a few days ago.

I haven't yet purchased any of the stocks on my March 2024 Dividend Stock Watch List, but plan to in the coming days. With the month more than half over, I will now be looking ahead to April 2024. Here are three of the stocks on my watch list for next month.

Image Source: Pexels

Dividend Stock #1: PepsiCo (PEP)

The first stock on my watch list for April 2024 is PepsiCo (PEP). Since my investment thesis is unchanged from my Seeking Alpha article last September, interested readers can check out that article.

In a nutshell, PEP's 3.1% dividend yield is sustainable. Thanks to healthy profitability and industry leadership, the company possesses an A-rated balance sheet. Shares also appear to be slightly undervalued at the current $171 share price (as of March 18, 2024). That's why I'm looking to up my weighting from 0.9% to between 1.5% and 2%.

Dividend Stock #2: Starbucks (SBUX)

The next stock on my watch list for next month is Starbucks (SBUX).

The holding currently comprises 0.8% of my portfolio, which I wouldn't mind ultimately doubling. Starbucks looks to have plenty of room to grow yet: The company is targeting 55,000 stores in the long-term, which is well above its mark of nearly 39,000 as of Dec. 31, 2023.

Couple that with margin expansion and this could support double-digit non-GAAP EPS growth annually for the foreseeable future. Free cash flow also covered the dividend nearly three times over in its fiscal first quarter per the Q1 2024 Press Release that I linked above, which suggests the payout can keep growing at a strong rate. Along with a 2.5% dividend yield and what I believe to be moderate undervaluation from the current $91 share price (as of March 18, 2024), this is why I'm interested in doubling my position.

Dividend Stock #3: UnitedHealth Group (UNH)

The third stock on my watch list for April 2024 is UnitedHealth Group (UNH). Since my previous Seeking Alpha article last month, my investment thesis remains unchanged.

UNH is a dividend growth machine with more than enough free cash flow to support further dividend growth. That makes an otherwise pedestrian 1.5% dividend yield quite attractive to me. It's how I anticipate the dividend will again double in the next five years. Shares also could be somewhat discounted at the current $487 share price (as of March 18, 2024). This is why I wouldn't mind increasing my weighting of UNH from the current 1.3% to around 2%.

Concluding Thoughts:

So, that's the trifecta of dividend growth stocks I'm seriously considering adding to next month. In my opinion, these are each respectively three of the best businesses in the world. I'm pleased to own all three of them and even more pleased that I will likely be owning more of them in the coming weeks.

Discussion:

Are any of PEP, SBUX, or UNH on your watch list for next month?

If not, what stocks are you paying attention to for April 2024?

Thanks for reading and please feel free to comment below!

Expected Dividend Increases For April 2024

As I'm writing this blog post, it's the ides of March. The temperature is currently 52 degrees Fahrenheit here in Central Wisconsin, with the high temperature expected to edge another 2 degrees higher to 54 later today. Needless to say, that's warm for this time of year.

All of my anticipated dividend hikes for this month have already played out. So, with that being the case, I will reminisce on these raises and how they compared to my expectations. I'll also look ahead to the payout boosts that I'm predicting for April. Let's dig into it!

Actual Dividend Increases For March 2024

Dividend Increase #1: Williams-Sonoma (WSM)

Williams-Sonoma announced a massive 25.6% boost in its quarterly dividend per share to $1.13. This was approximately quadruple the 6.7% raise to $0.96 that I was anticipating.

That's why I'm pleased this is my portfolio's fourth-biggest holding.

Across my 10 shares of WSM, my net annual forward dividends were lifted higher by $9.20 due to this dividend announcement.

Dividend Increase #2: TJX Companies (TJX)

TJX Companies declared a 12.8% hike in its quarterly dividend per share to $0.375, which was ahead of the 11.3% increase to $0.37 that I projected.

My net annual forward dividends surged $1.87 higher from this dividend declaration across my 11 shares of TJX.

Dividend Increase #3: General Dynamics (GD)

General Dynamics announced a 7.6% raise in its quarterly dividend per share to $1.42. Once again, this was better than the 6.1% bump to $1.40 that I predicted.

Across my six shares of GD, my net annual forward dividends grew by $2.40 due to this dividend announcement.

Dividend Increase #4: Realty Income (O)

Realty Income declared a 0.2% increase in its monthly dividend per share to $0.2570, which was in line with my expectations.

My net annual forward dividends rose by $0.234 across my 39 shares of O from this dividend declaration.

Dividend Increase #5: JPMorgan Chase (JPM)

On Mar. 19, JPMorgan Chase announced a 9.5% hike in its quarterly dividend per share to $1.15. This came as a complete surprise to me, but I'll definitely take it!

Across my six shares of JPM, my net annual forward dividends grew by $2.40 due to this dividend announcement.

Dividend Freeze: Dollar General (DG)

Dollar General announced that it was holding its quarterly dividend per share at $0.59. This was less than the 6.8% raise to $0.63 that I was anticipating.

Dividend Cut: American Tower (AMT)

American Tower declared a quarterly dividend per share of $1.62. This represented a 4.7% reduction versus the $1.70 dividend per share declared in the fourth quarter. That was consistent with what the company conveyed in the Q3 2023 Earnings Call, though. AMT will likely declare $6.48 in dividends per share in 2024, which will be marginally higher than the $6.45 declared in 2023.

The expectation remains that strong dividend growth will resume in 2025 after the company has completed desired deleveraging. This is why I will continue to hold, even after a technical dividend cut.

Across my six shares of AMT, my net annual forward dividends declined by $1.92 due to this dividend declaration.

Expected Dividend Increases For April 2024

Expected Dividend Increase #1: FedEx (FDX)

My best guess is that FedEx will announce a 9.5% hike in its quarterly dividend per share to $1.38.

If this played out, my net annual forward dividends would grow by $1.92 across my four shares of FDX from such an announcement.

Expected Dividend Increase #2: Tanger Inc. (SKT)

I believe Tanger Inc. will declare a 5.8% raise in its quarterly dividend per share to $0.275.

Across my 11 shares, such a declaration would result in a $0.66 increase in my net annual forward dividends.

Expected Dividend Increase #3: American Water Works (AWK)

My prediction is that American Water Works will announce an 8.1% hike in the quarterly dividend per share to $0.765.

My net annual forward dividends would rise by $0.92 across my four shares of AWK from such an announcement.

Expected Dividend Increase #4: RTX Corp (RTX)

My best guess is that RTX Corp will declare a 6.8% increase in its quarterly dividend per share to $0.63.

Across my 12 shares of RTX, my net annual forward dividends would grow by $1.92 due to such a declaration.

Expected Dividend Increase #5: Johnson & Johnson (JNJ)

I believe Johnson & Johnson will announce a 5.9% raise in its quarterly dividend per share to $1.26.

My net annual forward dividends would be lifted by $1.40 from such an announcement across my six shares of JNJ.

Expected Dividend Increase #6: Southern Company (SO)

My prediction is that Southern Company will declare a 2.9% increase in its quarterly dividend per share to $0.72.

Across my five shares of SO, my net annual forward dividends would edge $0.40 higher due to such a declaration.

Expected Distribution Increase #7: Energy Transfer (ET)

I anticipate that Energy Transfer will announce a 0.8% bump in its quarterly distribution per unit to $0.3175.

My net annual forward distributions would rise by $0.86 across my 86 units of ET from such an announcement.

Expected Dividend Increase #8: International Business Machines (IBM)

My best guess is that International Business Machines will declare a 0.6% increase in its quarterly dividend per share to $1.67.

Across my six shares of IBM, my net annual forward dividends would grow by $0.24 due to such a declaration.

Concluding Thoughts:

My net annual forward dividends have increased by $14.184 from the five dividend raises and the one dividend cut that were announced during the month. This equates to investing $472.80 in capital at a 3% net dividend yield.

If the eight dividend boosts that I'm anticipating come to pass in April, my net annual forward dividends could be lifted by $8.32. That would be like investing $277.33 in capital at a 3% dividend yield.

Discussion:

How did you fare with dividend announcements in March 2024?

Did you receive any first-time raises as I did with TJX?

Thanks for your readership and please leave your comments below!

Brokerage Transfer/February 2024 Dividend Stock Purchases

As I'm writing this blog post, it's officially March. The temperature here in Central Wisconsin is a balmy 53 degrees Fahrenheit. Needless to say, that's quite warm for this time of year.

With that in mind, I just wanted to post a brief update on my dividend stock purchases/sales in February 2024.

As was the case in this series' previous post, I remained busy with improving liquidity in February as well. My emergency fund is a few months beyond my target at this point. However, before I allocate $6,500 to opening an IRA account, I want my liquidity to be built up a bit more. That is why there were no buys during the month.

This is also why my only transaction during February 2024 was a sale of 0.24 shares of Realty Income (O). This leads me into the primary focus of this post.

My Brokerage Account Is Now With Charles Schwab

The reason that I sold 0.24 shares of O last month was that I completed the transfer of my Robinhood account to Charles Schwab. I had a fractional share of O that was from its acquisition of Spirit Realty Capital (SRC) that closed in January. Any fractional shares of stock were sold off by Robinhood in the process of the account transfer. Since this was my only fractional share holding, that was my only sale in February.

Concluding Thoughts:

There was nothing personal in my decision to transfer from Robinhood to CS. I'll always be grateful for Robinhood in playing a role in the start of my investing journey. I just appreciated that CS is a much more established player than Robinhood in terms of years of business and assets under management.

As I alluded to in my March 2024 Dividend Stock Watch List, I look forward to again becoming a net buyer of equities later this month.

Discussion:

Have you ever switched brokers?

If so, what was the reasoning?

Thanks for reading and please feel free to comment below!

February 2024 Dividend Income

As I'm writing this blog post, it is Saturday, February 24. The temperature here in Central Wisconsin remains quite warm, with the high temperature expected to reach 34 degrees Fahrenheit today.

With that aside, I am going to highlight my net dividend income for February 2024.

In February 2024, I received $351.91 in net dividends. That works out to a 7.4% growth rate over the $327.57 in net dividends that I collected in November 2023.

My net dividends were 41.9% higher versus the $248.08 in net dividends that I received in February 2023.

Digging into detail, I collected $335.97 from 29 companies in my Robinhood account. My net dividends received within my Webull portfolio were $15.57 from three companies (inclusive of $0.06 of ADR fees for British American Tobacco). Finally, I collected $0.37 in net dividends from 15 companies in my M1 Finance account.

The net dividends that I received from November 2023 to February 2024 rose by $24.34, which was the result of the following activity in my portfolio:

My net dividends received from Medifast (MED) in my Robinhood account were $11.55 less, which was the result of my sale in December.

I collected $8.13 less from United Parcel Service (UPS) within my Robinhood and M1 Finance portfolios. That was due to the timing of the dividend payment.

I also received $3.66 less in net dividends from TJX Companies (TJX) in my Robinhood account, which was the result of the dividend payment timing.

I received an extra $0.22 in net distributions from Energy Transfer (ET) in my Robinhood and Webull portfolios, which was the result of the 0.8% raise in the quarterly distribution per unit to $0.315.

My net dividends collected from Main Street Capital (MAIN) grew by $0.15 within my Robinhood account. This was due to the 2.1% bump in its monthly dividend per share to $0.24.

I received an additional $3.93 in net dividends from Realty Income (O) in my Robinhood portfolio. That was the result of my higher share count associated with the shares I received related to the Spirit Realty Capital acquisition.

My net dividends collected from STAG Industrial (STAG) were $0.02 higher within my Robinhood account, which was due to the 0.7% increase in its monthly dividend per share to $0.1233.

I received an extra $0.36 in net dividends from Alliant Energy (LNT) in my Robinhood portfolio. That was the result of the 6.1% raise in the quarterly dividend per share to $0.48.

My net dividends collected from AbbVie (ABBV) were $0.98 higher within my Robinhood account, which was due to the 4.7% increase in the quarterly dividend per share to $1.55.

I received an additional $0.24 in net dividends from Abbott Laboratories (ABT) in my Robinhood portfolio. That was the result of the 7.8% raise in the quarterly dividend per share to $0.55.

My net dividends collected from ONEOK (OKE) were $1.19 higher within my Robinhood account, which was due to the 3.7% increase in the quarterly dividend per share to $0.99.

I received an extra $0.79 in net distributions from Enterprise Products Partners (EPD) in my Robinhood and Webull portfolios. That was the result of the 3% raise in the quarterly distribution per unit to $0.515.

My net distributions collected from MPLX LP (MPLX) were $27.20 higher within my Robinhood account, which was due to my purchases in November and December.

I received an additional $0.48 in net dividends from British American Tobacco (BTI) in my Robinhood portfolio.

My net dividends collected from Bristol-Myers Squibb (BMY) were $0.66 higher within my Robinhood account. That was the result of the 5.3% raise in the quarterly dividend per share to $0.60.

I received an extra $10.20 in net dividends from American Tower (AMT) in my Robinhood portfolio, which was due to the timing of the dividend payment and the 5.6% raise in the quarterly dividend per share to $1.70.

My net dividends collected from CVS Health (CVS) were $0.90 higher within my Robinhood account. That was the result of the 9.9% raise in the quarterly dividend per share to $0.665.

I received an additional $0.36 in net dividends from Mastercard (MA) in my Robinhood portfolio, which was due to the 15.8% boost in the quarterly dividend per share to $0.66.

Concluding Thoughts:

February 2024 was the first middle of the month quarter that my net dividend income surpassed $350. As I resume investing soon, reinvest dividends, and receive dividend raises, this should hopefully continue to grow over time.

Discussion:

How was your February 2024 for dividend income?

Did you receive any first-time distributions/dividends as I did with MPLX?

Thanks for your readership and please leave your comments below!