Expected Dividend Increases For March 2025

As I'm writing this blog post on Friday, February 21st, it's going to reach a high of 25 degrees Fahrenheit here in Central Wisconsin. That's about what you'd expect for this time of the year. What makes it all the better is that we're on a warming trend and the high this weekend could reach 40 degrees.

Now that there's just a week remaining in the month, I'll go over the dividend raises that I've received thus far in February 2025. As the remaining raises that I'm expecting are announced in the coming days, I will also update this blog post accordingly. I'll also go over the dividend hikes that I'm predicting for March 2025.

Actual Dividend Increases for February 2025

Dividend Increase #1: Brookfield Asset Management (BAM)

Brookfield Asset Management announced a 15.1% hike in its quarterly dividend per share to $0.4375. This was better than the 13.2% boost to $0.43 that I predicted in the previous post of this series.

Across my 30 shares of BAM, my net annual forward dividends soared by $6.90 due to this announcement.

Dividend Increase #2: Genuine Parts Company (GPC)

Genuine Parts Company upped its quarterly dividend per share by 3% to $1.03. My net annual forward dividends grew by $0.72 across my six shares of GPC.

Dividend Increase #3: Coca-Cola (KO)

Coca-Cola upped its quarterly dividend per share by 5.2% to $0.51. Across my 10 shares, my net annual forward dividends grew by $1.00.

Dividend Increase #4: Meta Platforms (META)

Meta Platforms declared a 5% increase in its quarterly dividend per share to $0.525 - - this came a few weeks earlier than I expected. Overall, I was leaning more toward a 10% raise in the payout. However, I can't argue with META's conservatism with its raise. The company boasts superb returns on capital, so I'm completely fine with modest raises for the foreseeable future.

My net annual forward dividends rose by $0.50 across my five shares of META from this declaration.

Dividend Increase #5: NextEra Energy (NEE)

NextEra Energy announced a 10% boost in its quarterly dividend per share to $0.5665. This was just above the 9.7% increase to $0.565 that I anticipated.

Across my 18 shares of NEE, my net annual forward dividends rose by $3.708 due to this announcement.

Dividend Increase #6: Realty Income (O)

Realty Income upped its monthly dividend per share by 1.5% to $0.2680. That boosted my net annual forward dividends by $5.424 across my 13 shares of O.

Dividend Increase #7: PepsiCo (PEP)

PepsiCo declared a 5% increase in its quarterly dividend per share to $1.4225. That came in a bit below my expectation of a 6.3% raise in the quarterly dividend per share to $1.44. A company doesn't become and stay a Dividend King by overextending itself with unsustainable dividend raises. So, I appreciate the more cautious raise from PEP in what will likely be a 2025 with more modest growth.

My net annual forward dividends grew by $4.59 across my 17 shares of PEP from this declaration.

Dividend Increase #8: Prudential Financial (PRU)

Prudential Financial announced a 3.8% raise in its quarterly dividend per share to $1.35. This was slightly less than the 4.6% increase to $1.36 that I predicted.

Across my 10 shares of PRU, my net annual forward dividends increased by $2.00 due to this announcement.

Dividend Increase #9: Rexford Industrial (REXR)

Rexford Industrial declared a 3% increase in its quarterly dividend per share to $0.43.

My net annual forward dividends were lifted by $1.50 from this declaration across my 30 shares of REXR from this declaration.

Dividend Increase #10: T. Rowe Price Group (TROW)

T. Rowe Price Group announced a 2.4% increase in its quarterly dividend per share to $1.27.

Across my six shares of TROW, my net annual forward dividends rose by $0.72 due to this announcement.

Dividend Increase #11: Tractor Supply (TSCO)

Tractor Supply declared a 4.5% raise in its quarterly dividend per share to $0.23. This was less than the 9.1% increase to $0.24 that I anticipated.

My net annual forward dividends increased by $1.00 across my 25 shares of TSCO from this declaration.

Dividend Increase #12: United Parcel Service (UPS)

United Parcel Service announced a 0.6% increase in its quarterly dividend per share to $1.64.

Across my five shares of UPS, my net annual forward dividends edged $0.20 higher due to this announcement.

Pending Dividend Increase #1: Allstate (ALL)

Allstate has yet to declare a dividend hike. However, I'm sticking with my forecast of a 5.4% raise in the quarterly dividend per share to $0.97.

My net annual forward dividends would grow by $1.00 across my five shares of ALL from such a declaration.

UPDATE: ALL upped its quarterly dividend per share by 8.7% to $1.00. My net annual forward dividends rose by $1.60 across my five shares of ALL from this declaration.

Pending Dividend Increase #2: The Home Depot (HD)

The Home Depot also has yet to announce a dividend boost. I still believe that HD will up the quarterly dividend per share by 7.6% to $2.42.

Across my five shares of HD, my net annual forward dividends would rise by $3.40 due to such an announcement.

UPDATE: HD announced a 2.2% increase in its quarterly dividend per share to $2.30. Across my five shares, this increased my net annual forward dividends by $1.00.

Pending Dividend Increase #3: L3Harris Technologies (LHX)

L3Harris Technologies hasn't yet declared a dividend raise. I continue to think that LHX will increase the quarterly dividend per share by 7.8% to $1.25.

My net annual forward dividends would edge $1.44 higher across my four shares of LHX from such a declaration.

UPDATE: LHX increased its quarterly dividend per share by 3.4% to $1.20. My net annual forward dividends grew by $0.64 due to this dividend declaration.

Bonus Dividend Increase: TJX Companies (TJX)

TJX announced a 13.3% hike in its quarterly dividend per share to $0.42. This was earlier than I expected and ahead of my expectations of a 9.3% increase to $0.41.

Across my 11 shares of TJX, my net annual forward dividends grew by $2.20 from this announcement.

Expected Dividend Increases for March 2025

Expected Dividend Increase #1: General Dynamics (GD)

The first dividend raise that I'm expecting for next month will come from General Dynamics. I believe that GD will announce a 6.3% increase in its quarterly dividend per share to $1.51.

Across my six shares of GD, my net annual forward dividends would grow by $2.16 from such an announcement.

Expected Dividend Increase #2: Realty Income (O)

The next dividend increase that I'm predicting for March will be from Realty Income. My best guess is that O will declare a 0.2% increase in the monthly dividend per share to $0.2685.

My net annual forward dividends would rise by $0.678 across my 113 shares due to such a declaration.

Expected Dividend Increase #3: Williams-Sonoma (WSM)

The third and final dividend raise that I'm expecting for March will be from Williams-Sonoma. I believe WSM will declare an 8.8% increase in its quarterly dividend per share to $0.62.

My net annual forward dividends would grow by $2.00 across my 10 shares of WSM due to such a declaration.

Concluding Thoughts:

The 16 dividend raises that I have received thus far in February 2025 have boosted my net annual forward dividends by $33.702. That's like investing $1,123.40 at a 3% net dividend yield.

If the four raises that I'm projecting in March materialize, my net annual forward dividends would grow by $4.838. This would equate to investing $161.27 of fresh capital at a 3% dividend yield.

Discussion:

How was your February 2025 for dividend raises?

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

I appreciate your readership and look forward to your comments below!

March 2025 Dividend Stock Watch List

As I'm writing this blog post on February 15th, the high temperature is set to reach 23 degrees Fahrenheit here in Central Wisconsin. For this time of year, that's not too shabby.

Now that the month of February is just a couple of weeks away from ending, I'm going to take a moment to go over the dividend stocks at the top of my watch list for March 2025. Without further ado, let's jump into it!

Stock #1: Alphabet (GOOGL)

First up on my watch list for March 2025 is Alphabet. In the three months or so, I have added to GOOGL on four separate occasions. Interested readers can check out my investment thesis on GOOGL in my January 2025 Dividend Stock Watch List blog post.

GOOGL continues to have a clear path to annual earnings growth in the teens. The company's balance sheet is immaculate and it enjoys an AA+ credit rating from S&P on a stable outlook. The dividend obligation is very low versus free cash flow. That gives plenty of room for GOOGL to hand out big dividend hikes for many years (off a modest 0.4% dividend yield). The current $185 share price (as of February 15th, 2025) works out to a forward P/E ratio of just above 20x, which is well below the historical multiple of 25x.

Stock #2: Realty Income (O)

The next stock on my watch list in none other than Realty Income. Having added to my stake three times in as many months, the Dividend Aristocrat and unofficial Dividend King has been another stock I've been busy buying up lately. Curious readers can peruse my investment thesis on O in my August 2024 Dividend Growth Stock Watch List blog post.

Seven months later, my reasons for wanting to buy more O are basically the same. The company can realistically keep generating mid-single-digit annual AFFO per share growth. O is also one of few REITs that boasts an A-rated balance sheet. The nearly 6% dividend yield remains well-covered by AFFO. The icing on the cake is that O's shares are trading at a forward P/AFFO ratio of less than 13x from the current $54 share price (as of February 15th, 2025). That's considerably lower than the historical multiple of approximately 18x.

Stock #3: UnitedHealth Group (UNH)

Last but not least on my watch list is UnitedHealth Group. This is a stock that I haven't added to since April 2024.

Overall, I still think UNH has double-digit annual earnings growth potential. The company also sports an A+ credit rating from S&P on a stable outlook. The dividend is easily covered by earnings and free cash flow, which should provide a lengthy runway for continued double-digit annual dividend growth. UNH is trading at a forward P/E ratio of slightly above 17x from the current $523 share price (as of February 15th, 2025), which is under its historical multiple of 20x.

Concluding Thoughts:

That's it for now. I believe GOOGL and UNH do a great job of mixing value with moderate to superb growth prospects. O's growth is lesser but it could provide solid upside over the next few years via significant valuation multiple expansion. Overall, I plan on allocating just over 60% of my capital to GOOGL and UNH and the remaining ~40% of my capital to O. This would provide immediate income approaching a 3% yield, with robust earnings growth potential, A-rated balance sheets, and all at double-digit discounts to my fair value estimates.

Discussion:

Are any of GOOGL, O, or UNH on your watch list for next month?

If not, what are you watching for March 2025?

Thanks for reading and please feel free to comment below!

January 2025 Stock Purchases/Sales

As I'm writing this blog post, it's Saturday, February 8th. The temperature is expected to reach a high of 24 degrees Fahrenheit here in Central Wisconsin today. But for the six to 10 inches of cumulative snowfall expected in the coming hours, the weather would be ideal for this time of year.

Now that January has concluded, I'll be taking a few moments to outline the dividend stock purchases that I made in January 2025 with fresh capital. I'll also go over my sales for the month and the stocks into which I redeployed the capital proceeds.

Stock Purchase #1: Amazon (AMZN)

The first stock that I purchased with fresh capital in January 2025 was three more shares of Amazon at an average of $228.00 a share. Interested readers can either peruse my November Seeking Alpha article or my December 2024 Stock Watch List blog post for my investment thesis.

Stock Purchase #2:  British American Tobacco (BTI)

The next stock that I purchased with fresh capital for the month was 24 shares of British American Tobacco at an average price per share of $37.05. Curious readers can find my investment thesis in my February 2025 Stock Watch List blog post. This transaction lifted my net annual forward dividends by $70.80, which equates to a 7.96% net dividend yield.

Stock Purchase #3: Alphabet (GOOGL)

The third stock that I purchased with fresh capital in January 2025 was four shares of Alphabet at $197.05 apiece. Readers can check out my investment thesis in my January 2025 Dividend Stock Watch List blog post. This transaction increased my net annual forward dividends by $3.20, which works out to a 0.41% net dividend yield.

Dividend Stock Sales: CVS Health (CVS), Exxon Mobil (XOM), Shell plc (SHEL), BP plc (BP), Williams-Sonoma (WSM), STAG Industrial (STAG), Kimberly Clark (KMB), and Starbucks (SBUX)

My first stock sale was 15 shares of CVS Health at $46.03 each. Challenges to the business model and the frozen dividend led me to close my position in CVS.

In my next series of moves, I sold out of my 11 share position in Exxon Mobil (XOM) at $106.69 apiece, my nine share position of Shell plc (SHEL) at $64.56 a share, and my 11 share position in BP plc (BP) at $31.11 each. These sales were made to transition my portfolio away from more cyclical positions.

The next set of moves I made was to sell 10 shares out of my 20 shares of Williams-Sonoma (WSM) at $198.60 apiece, closing my 21 share position in STAG Industrial (STAG) at $34.01 a share, and exiting my four share position in Kimberly Clark (KMB) at $125.98 each. I like WSM as a company, but view the stock's valuation as being quite elevated right now. For STAG and KMB, I have been displeased by the meager dividend growth in recent years.

My final sale of the month was closing my 23 share position in Starbucks (SBUX) at an average of $109.09 a share. I think that SBUX can execute a turnaround. However, the stock is already priced as if that has happened. Thus, I saw this as a good chance to exit with a nice profit.

These transactions resulted in a $258.87 decrease in my portfolio's net annual forward dividends.

Stock Purchases: Enterprise Products Partners (EPD), Nvidia (NVDA), Realty Income (O), and More Amazon (AMZN)

I added another 67 units of Enterprise Products Partners (EPD) at an average price per unit of $32.27. For interested readers, my buying rationale is pretty much the same as it was in my October 2024 Stock Watch List blog post.

I also purchased another 10 shares of Nvidia (NVDA) at an average cost of $136.76 a share. Curious readers can find the gist of my investment thesis in my January 2025 Stock Watch List blog post linked earlier.

I boosted my position in Realty Income (O) by 50 shares at an average price per share of $53.87. The basics of my investment thesis can be found in my August 2024 Dividend Growth Stock Watch List blog post.

I purchased another nine shares of Amazon (AMZN) at an average cost of $230.89 a share.

Concluding Thoughts:

I deployed $2,361.40 in fresh capital in January 2025. Against the $74.00 in net dividends added from these transactions, that is equivalent to a 3.13% net dividend yield. Capital redeployment boosted my net annual forward dividends by $40.63 during the month.

My net annual forward dividends were also lifted by $21.41 from January 2025 Dividend Increases. These variables led my net annual forward dividends to rise from over $5,455 to begin January 2025 to nearly $5,600 heading into February 2025.

Discussion:

How was your capital deployment in January 2025?

Did you add any new stocks during the month?

I appreciate your readership and look forward to your comments below!

January 2025 Dividend Income

As I'm writing this blog post on February 1st, the temperature here in Central Wisconsin is set to reach a high of 25 degrees Fahrenheit. For this time of year, that's certainly not shabby.

Now that January 2025 is complete, I'll go over my dividend income for the month. Without further ado, let's get into it!

Total Net Dividends Were Just Short Of $270

During January 2025, I collected $268.05 in net dividends (including GSK ADR fees). This works out to a 1.3% quarterly growth rate compared to the $264.70 in net dividends received in October 2024. Adjusting for net dividends lost from the sales of Albemarle (ALB) and Cisco Systems (CSCO) last November and the sales of Crown Castle (CCI) and Innovative Industrial Properties (IIPR) last December, my net dividends would have grown by 13.4%.

Against the $265.76 in net dividends that I collected in January 2024, this would be a 0.9% year-over-year growth rate. Backing out other stock sales in the last year, this also would have grown by double digits.

I received $226.34 in net dividends from 21 companies in my Charles Schwab account. The aforementioned sales in this account contributed to a slight decrease in net dividends.

I also collected $31.74 in net dividends from five companies within my Fidelity portfolio. This higher net dividend income was largely due to the timing of PepsiCo's (PEP) dividend payment.

I received $9.97 in net dividends from three companies in my Webull account. This decrease in net dividends was the result of the sale of ALB in the account.

Concluding Thoughts:

In the last year, I've continued to make changes to improve my portfolio. As time goes by, I believe I will be vindicated by these moves. Overall, I'm looking forward to continuing to deploy capital to world-class dividend growth stocks.

Discussion:

How was your January 2025 dividend income?

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

I appreciate your readership and look forward to your comments below!