patty_c/iStock Unreleased via Getty Images This is the latest in my series of articles where I provide predictions of annual dividend increases for a variety of long-term dividend growth companies. Back at the end of January, I provided predictions for 14 dividend growth companies that have historically announced annual payout increases in the second half of February. In this article I’ll look at another 8 dividend growth companies that I expect will announce their annual dividend increases in March.
In addition to the companies for which I gave predictions, several other companies announced annual increases:
– REIT UDR ( UDR ) announced a 4.8% increase to mark its 13th year of dividend growth. The new annual dividend rate gives the company a forward yield of 2.71%.
– Leggett & Platt ( LEG )’s 5% boost to mark its 51st year of dividend growth gives the furniture company a forward yield of 4.50%.
– Insurance company Old Republic ( ORI ) extended its dividend streak to 41 years with a 4.5% dividend increase, giving the company a forward yield of 3.47%.
– Finally, investment company Franklin Resources ( BEN ) announced a 3.6% increase, giving the company a forward yield of 3.84%. This is Franklin Resources’ 42nd year of dividend growth.
Here are the results from my last article (the original predictions are available here ), followed by my predictions for the dividend increases that I’m expecting to be announced in March:
(All yields are based on stock prices at the market close on Friday, February 25th.) Results for Dividend Increase Announcements from the Second Half of February
Albemarle Corporation ( ALB ) – 28 years
Prediction: 1.3 – 2.6% increase to $1.58 – $1.60
Actual: 1.3% increase to $1.58
Forward yield: 0.82%
A drop in EPS forced the specialty chemical company to continue to slow its dividend growth.
Best Buy ( BBY ) – 19 years
Prediction: 17.1 – 21.4% increase to $3.28 – $3.40
Actual: Deferred to March
The electronics retailer should announce its latest dividend increase when it reports earnings on March 3rd.
Chubb Limited ( CB ) – 29 years
Prediction: 3.8 – 5.0% increase to $3.32 – $3.36Actual: 3.8% increase to $3.32Forward yield: 1.60%This makes the 8th year of either 8 or 12 cent annual increases for the insurer. Cisco Systems ( CSCO ) – 12 years Prediction: 2.7 – 5.4% increase to $1.52 – $1.56Actual: 2.7% increase to $1.52Forward yield: 2.71%The internet hardware company’s dividend growth continues to slow; this is the 3rd year of annual 4-cent increases for Cisco. Essex Property Trust ( ESS ) – 28 years Prediction: 0.6 – 1.7% increase to $8.41 – $8.50Actual: 5.3% increase to $8.80Forward yield: 2.71%After a sub-1% increase last year, Essex Property returned to its normal level of dividend growth. The Home Depot ( HD ) – 13 years Prediction: 13.6 – 15.2% increase to $7.50 – $7.60Actual: 15.2% increase to $7.60Forward yield: 2.40%EPS growth of 16% in 2020, followed up by continued growth in the first 3 quarters of 2021 means another double-digit boost for Home Depot. The Coca-Cola Company ( KO ) – 60 years Prediction: 4.8 – 7.1% increase to $1.76 – $1.80Actual: 4.8% increase to $1.76Forward yield: 2.80%The beverage company’s dividend growth accelerated this year but is still below the 10-year growth average of 6%. McGrath RentCorp ( MGRC ) – 30 years Prediction: 2.3 – 4.6% increase to $1.78 – $1.82Actual: 0% increase to $1.74Forward yield: 2.14%With an EPS drop of 14%, the business-to-business rental company decided to hold off on its annual increase in the first quarter. The company has until the end of 2022 to increase its payout to keep its dividend growth streak going. NextEra Energy ( NEE ) – 28 years Prediction: 9.1 – 11.7% increase to $1.68 – $1.72Actual: 10.4% increase to $1.70Forward yield: 2.20%Buoyed by 10% EPS growth, the parent company of Florida Power & Light announced another double-digit dividend boost. Public Service Enterprise Group ( PEG ) – 11 years Prediction: 3.9% increase to $2.12Actual: 5.9% increase to $2.16Forward yield: 3.33%The Newark-based utility broke its 7-year streak of 8-cent annual increases as it starts its second decade of dividend growth. The Sherwin-Williams Company ( SHW ) – 44 years Prediction: 7.3 – 10.0% increase to $2.36 – $2.42Actual: 9.1% increase to $2.40Forward yield: 0.90%While not close to last year’s 22% dividend increase, investors should still be happy with the paint and coating company’s latest increase. Silgan Holdings ( SLGN ) – 18 years Prediction: 14.3 – 17.8% increase to $0.64 – $0.66Actual: 14.3% increase […]
source Home Depot, Next Era Energy Reward Investors With Double-Digit Boosts
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