We love dividend growth! We follow dividend increases like a hawk and always check our news feed to see which companies have announced dividend increases. Every month we publish an article about expected dividend increases in the coming months. We have 5 dividend hikes coming up in August! This article summarizes each and shares each company’s recent dividend history.
Why dividends increase value
Dividends are the foundation of our goal of achieving financial freedom. We continuously invest in dividend growth stocks to increase our passive income. If you haven’t figured it out yet, we eat, sleep and breathe dividends!
Read: 5 Reasons WHY Dividend Investing is the EASIEST Form of Passive Income
If the goal is to create a passive income stream that will one day cover our expenses, it’s important to make sure the income stream GROWS. Without growth, your dividend stream will be lost purchasing power to inflation. This is a major challenge in 2022, given record inflation and rising interest rates.
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That’s why dividend growth is a major deciding factor in all of our stock buying decisions. This is the 3rd metric our Dividend Stock Screener for a reason. For each stock, we look at the company’s dividend growth history (consecutive annual dividend increases) and the company’s five-year average dividend growth rate!
We cover dividend news extensively our Youtube channel. Each week we discuss major dividend increases from the previous week. Obviously, as you’ve all learned, we’re passionate about dividends and their growth!
Actual dividend increase in July 2022
Before we get to the expected dividend increase in August, let’s take a look back at July’s results. While there were a few bright spots, it’s no surprise that July saw some less-than-stellar dividend increases for some companies that traditionally announce major dividend increases. Why do I say it’s not surprising? Well, record inflation, high interest rates, booming gas prices and warnings of a recession are dominating the headlines.
Our article There were 8 expected dividend increases last month is projected for July. Here were the results.
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- Cummins (CMI) – The growth was 8.3%.
- Smokers (SJM) – growth by 3%.
- Stanley Black & Decker (SWK) – growth by 1.3%.
- Hershey (HSY) – an increase of 15%.
- Scott’s Miracle Grow (SMG) – Not announced in July!
- South Norfolk (NSC) – Not announced in July!
- Walgreens Boots Alliance (WBA) – an increase of 0.5%.
- Sintos (CTAS) – growth by 21.1%.
Expected dividend increase in August 2022
July is behind us, let’s look into August. Let’s hope all 5 of the following companies crush it and announce 5 strong dividend increases in August!
Dividend Stock #1: Altria Group (MO) – Now that would be an exciting dividend increase announcement. Altria Group is down in 2022, and their dividend yield SLOWED to over 8%. The company’s stock continues to remain stagnant amid the ever-changing news of JUUL’s terrible investments. What started out as a promising investment years ago continues to erode the company’s revenue. What started out as a $12 billion or more investment is now significantly discounted due to lower valuations. In addition, regulators are puzzled whether it should be done ban the product or not in the US. Altria continues to remain in storage mode while these important details are ironed out. We’ve already seen the company’s dividend growth slow significantly in recent years. I seriously doubt that 2022 will be the year Altria Group returns to dividend growth glory.
- Consecutive dividend increase: 12 years
- Dividend increase for 2021: 4.7%
- Average dividend growth rate over 5 years: 8.23%
- Expected time of dividend announcement: end of the month
Watch: Our analysis of Altria Group – we share our thoughts on the company’s current value
Dividend Stock #2: Nordson (NDSN) – Come on everyone, you know what I love more than anything else, right? A company headquartered in our home state. Nordson adds the icing on the cake because it’s located in Cleveland, Ohio! Nordson is a quiet dividend aristocrat. The company’s business centers on products and systems that dispense adhesives, coatings, polymers, sealants, and more. The company’s dividend yield is 1.4% and is in line with the market. Combined with the high rate of dividend growth, you can see why many people like this company.
- Consecutive dividend increase: 41 years
- Dividend increase in 2021: 30.8%
- Average dividend growth rate over 5 years: 13.95%
- Expected time of dividend announcement: mid-month
Dividend Stock #3: Illinois Tool Works (ITW) – Almost the dividend king is going to increase its dividend this month! We both own Illinois Tool Works (ITW) and bought it a few years ago. We haven’t looked back since. Competitor 3M (MMM) is a welcome addition to our portfolio. Last year’s dividend growth was lower than the 5-year average dividend growth rate. Under current conditions, I would expect a similar trend in 2022.
- Consecutive dividend increase: 46 years
- Dividend increase in 2021: 7%
- Average dividend growth rate over 5 years: 13.75%
- Expected time of dividend announcement: beginning of the month
Dividend Stock #4: Dover Corporation (DOV) – Wow. This is a big month for heavy equipment and manufacturing companies. This is the third company in a row on our sector list. Dover Corporation “provides hardware and components, consumables, spare parts, software and digital solutions, as well as support services worldwide,” for finding alpha. What sets Dover apart from the rest of the companies on this list is that they are Divided King! In fact, they have one of the longest streaks on this list. Unfortunately, the company’s dividend growth history is terrible. With a yield of 1.5% and a DGR of 2.6%, this is not the combination we want to see for our portfolio.
- Consecutive dividend increase: 66 years
- Dividend increase in 2021: 1%
- Average dividend growth rate over 5 years: 2.61%
- Expected time of dividend announcement: beginning of the month
Dividend Stock #5: Federal Real Estate Investment Trust (FRT) – And last, but certainly not least, another dividend king that completes our list. However, today we are going to focus on the REIT sector. FRT owns shopping centers and large complexes in major cities of the coastt. They are not the highest yielding REITs, and their dividends grow slowly and steadily. However, the company is proud to have increased its dividend for more than 54 consecutive years. In 2022, I see no reason why they won’t make it 55 years in a row.
- Consecutive dividend increase: 54 years
- Dividend increase in 2021: 1%
- Average dividend growth rate over 5 years: 2.05%
- Expected time of dividend announcement: beginning of the month
Summary
I won’t lie. This is not the most exciting month for dividend increases. Outside of Altria, the group’s expected August dividend increase isn’t getting much recognition. But that’s the point, isn’t it? Dividend investing doesn’t have to be exciting. In our world, sad is great. We want companies to go about their business, grow their profits and increase their dividends every year. That’s why we love putting together this roundup every month, and why we’re such passionate dividend growth investors!
How much of the 5 expected dividend increases in August are you going to receive? What other companies are going to increase YOUR income this month? What dividend increases did you receive in July?
Burt
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