The past week was very slow when it comes to dividend increases. The only notable increase was Verizon (VZ), with its 2% raise in the quarterly dividend to $0.6525/share. This was the 18th consecutive year in which the annual dividend increased.
The company seems cheap at 8 times forward earnings and a dividend yield of 6.32%. The company does face increased competitive pressures. On top of that, rising interest rates make the high dividend less appealing. Rising rates also make debt more expensive. Most importantly, a 2% rate of annual increases is below the historical rate of inflation, let alone the high inflation we are experiencing today in 2022.
I decided to do some research, a compile a list of prominent dividend growth stocks that are expected to raise dividends in September. I enjoy the predictability of dividend payments, which is one aspect of Dividend Growth Investing which is appealing to me. I also value the businesses that can reward long-term shareholders with a somewhat predictable raise on an annual basis as well.
I expect the following fivewidely-held Dividend Growth Companies to announce increases in their quarterly dividends in September:
Accenture (ACN)
The company last raised dividends by 10.23% to $0.97/share in September 2021. It has a five year annualized dividend growth rate of 9.40%.
I expect a raise in the 9% - 10% range to $1.07/share. This would be the 17th year of consecutive annual dividend increases for this dividend achiever.
Right now, the stock sells for 26.81 times forward earnings and yields 1.35%.
Lockheed Martin (LMT)
The company last raised dividends by 7.69% to $2.80/share in September 2021. It has a five year annualized dividend growth rate of 9.40%.
I expect a raise in the 8% - 9% range to $3/share. This would be the 20th year of consecutive annual dividend increases for this dividend achiever.
Right now, the stock sells for 15.70 times forward earnings and yields 2.67%.
Microsoft (MSFT)
The company last raised dividends by 10.71% to $0.62/share in September 2021. It has a five year annualized dividend growth rate of 9.40%.
I expect a raise in the 9% - 10% range to $0.68/share. This would be the 18th year of consecutive annual dividend increases for this dividend achiever.
Right now, the stock sells for 25.33 times forward earnings and yields 0.96%.
McDonald's (MCD)
The company last raised dividends by 6.98% to $1.38/share in September 2021. It has a five year annualized dividend growth rate of 7.80%.
I expect a raise in the 5% - 6% range to $1.45/share. This would be the 46th year of consecutive annual dividend increases for this dividend aristocrat.
Right now, the stock sells for 26.55 times forward earnings and yields 2.12%.
Philip Morris International (PM)
The company last raised dividends by 4.17% to $1.25/share in September 2021. It has a five year annualized dividend growth rate of 3.40%.
I expect a raise in the 3% - 4% range to $1.30/share. This would be the 14th year of consecutive annual dividend increases for this dividend achiever.
Right now, the stock sells for 17 times forward earnings and yields 5.23%.
Texas Instruments (TXN)
The company last raised dividends by 12.75% to $1.15/share in September 2021. It has a five year annualized dividend growth rate of 20.80%.
I expect a raise in the 11% - 12% range to $1.27/share. This would be the 19th consecutive annual dividend increase for this dividend achiever.
Right now, the stock sells for 17.60 times forward earnings and yields 2.73%.
Realty Income (O)
The REIT tends to raise distributions by a little bit every 3 months by a fraction of a penny. The last raise was 0.20% to $0.2475/share. Realty Income has a 5 year annualized dividend growth rate of 3.40%.
I expect a raise to $0.2480/share. While small in itself, the new payment would be about 5% higher than the distribution in September 2021. This dividend aristocrat has increased annual dividends since 1994.
The stock sells for 16.80 times FFO and yields 4.40%.
Starbucks (SBUX)
The company last raised dividends by 8.88% to $0.49/share in September 2021. It has a five year annualized dividend growth rate of 16.70%.
I expect a raise in the 8% - 9% range to $0.53/share. This would be the 12th consecutive annual dividend increase for this dividend achiever.
Right now, the stock sells for 31 times forward earnings and yields 2.20%.
Thank you for reading!
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