Dividend increases are the best! Your passive income grows without lifting a finger. We are always watching the news and websites (5 free websites we use for stock research) to keep an eye on our income streams. That is why each month, we look ahead and see what stocks are expected to announce dividend increases. Here are 8 dividend stocks expected to announce dividend increases in September 2022!

Why Dividend Increases Matter

Dividends are the foundation of our goal to reach financial freedom. We continuously invest in dividend growth stocks to grow our passive income. If you haven’t figured it out by now, we eat, sleep, and breathe dividends!

Read: 5 Reasons WHY Dividend Investing is the EASIEST Form of Passive Income

If the goal is to produce a passive income stream that will one day cover our expenses, making sure that income stream GROWS is critical. Without growth, your dividend income stream will lose purchasing power to inflation. In 2022, this is a major problem given the record setting inflation and rising interest rates.

Now Earn 2.00% on Your Checking & Savings Account with SoFi 

That is why dividend growth is a major deciding factor in all of our stock purchase decisions. It is the 3rd metric of our Dividend Stock Screener for a reason. For each stock, we review a company’s history of increasing dividends (consecutive annual dividend increases) and a company’s five-year average dividend growth rate!

We cover dividend news extensively on our Youtube Channel. Each week, we discuss the major dividend increases from the week before. Clearly, as you all are learning, we are passionate about dividend and dividend growth!

Actual Dividend Increases in August 2022

Before we look ahead to an exciting month of dividend increases, let’s look back and see if the 5 featured dividend stocks from last month’s article delivered strong dividend increases!

Our article last month featured 5 expected dividend increases projected for July. Here were the results.

    1. Altria Group (MO): 4.4% increase
    2. Nordson (NDSN): 28% increase
    3. Illinois Tool Works (ITW): 7% increase
    4. Dover Corporation (DOV): 1% increase
    5. Federal Realty Investment Trust (FRT): 1% increase

Interestingly, there was stock that did not announce a dividend increase in July that we were hoping would still announce a dividend increase in August. Unfortunately, that stock left the two of us hanging. Scotts Miracle-Gro (SMG). It has been a tough year for the company. This is just another notch on that belt for Scotts.

Expected Dividend Increases in September 2022

With the past behind us, it is time to look ahead to the 8 dividend stocks expected to announce dividend increases in September 2022. The list features some heavy-hitters. You bet that the two of us are going to be eagerly awaiting each of these dividend announcements!

Dividend Stock #1: McDonalds (MCD): One of our Top 5 Foundation Dividend Stocks is kicking this party off. The Golden Arches is set to announce a dividend increase in September. McDonalds’ dividend increase has been remarkably consistent over the years. The company’s 7% increase last year was right in line with the five-year average dividend growth rate. It will be interesting to see the impact inflation will have on the company’s financial statements and dividend increase in 2022. Maybe there will be a few surprise fries at the bottom of the bag for us investors.

  • Consecutive Dividend Increases:  45 Years
  • 2021 Dividend Increase: 7.0%
  • 5-Yr Average Dividend Growth Rate: 7.96%
  • Expected Timing of Dividend Announcement: End of Month

Dividend Stock #2: Starbucks (SBUX): Now this is going to be a dividend increase the two of us will watch like a hawk. Throughout 2022, we have been adding to our Starbucks positions and taking advantage of stock prices below $80 per share (when we can). Now, the stock price has rebounded and we’ve cooled off the purchases. With large SBUX positions, each percent increase will have a larger impact on our forward dividend income. The store is always packed and has lines wrapped around it. Hopefully, they follow their customers leads and deliver us a banger of a dividend increase in 2022!.

  • Consecutive Dividend Increases:  11 Years
  • 2021 Dividend Increase: 8.9%
  • 5-Yr Average Dividend Growth Rate: 14.56%
  • Expected Timing of Dividend Announcement: End of Month

Dividend Stock #3: Lockheed Martin (LMT): Speaking of stock purchases, I kind of forgot I started a position in Lockheed Martin earlier in the year when the stock price tanked. 6.112 shares of the aerospace giant may not seem like a lot; however, our position now has a market value above $2,600.  Interestingly, Lockheed Martin is closing in on becoming a Dividend Aristocrat (a company that has increased its dividend for 25+ consecutive years) and will become one before the decade is over! September will bring us one month closer to Lockheed earning this coveted title.

  • Consecutive Dividend Increases:  19 Years
  • 2021 Dividend Increase: 7.7%
  • 5-Yr Average Dividend Growth Rate: 9.12%
  • Expected Timing of Dividend Announcement: End of Month

Dividend Stock #4: Microsoft (MSFT): Oh man, it is time to change gears and head to the technology sector. Microsoft has an insanely large market cap and is not afraid to flex its muscles when needed. The company’s dividend yield isn’t the highest at the moment (.9%). So a large dividend increase may be exactly what the doctor ordered for investors that would like to at least earn a dividend yield in line with the S&P 500!

  • Consecutive Dividend Increases:  16 Years
  • 2021 Dividend Increase: 10.7%
  • 5-Yr Average Dividend Growth Rate: 9.72%
  • Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #5: Philip Morris (PM): Altria Group delivered a dud in 2022, as we discussed earlier in the article. Will Philip Morris follow suit or chart their own course? I’ve always like Philip Morris’s international tobacco exposure more than Altria’s domestic exposure. Especially with the direction the laws in the United States are heading. Philip Morris’ dividend yield is WELL over 5% as well. A nice touch that produces a smoking hot dividend for us shareholders!

  • Consecutive Dividend Increases:  13 Years
  • 2021 Dividend Increase: 4.2%
  • 5-Yr Average Dividend Growth Rate: 3.75%
  • Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #6: Store Capital (STOR): This was a fun ride for Lanny and Warren Buffett. The dividend REIT caught fire on this website, YouTube Channel, and throughout the dividend investing community. The company’s financials are great and they are now a major player in the attractive REIT market. Store Capital is set to announce a dividend increase in September. What is sweet is that the company has a strong yield (5.5%+) and a solid dividend growth rate (for a high yielding stock).

  • Consecutive Dividend Increases:  6 Years
  • 2021 Dividend Increase: 6.9%
  • 5-Yr Average Dividend Growth Rate: 5.84%
  • Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #7: Texas Instruments (TXN): Swinging back to the tech sector. We are starting to see this company pick up steam in the dividend investing community. How could it now, given the company’s 13% dividend growth rate coupled with its 2.7% dividend growth rate?! This is a company I’ve never strongly considered for my portfolio. If there is another strong dividend increase in 2022, I may have to.

  • Consecutive Dividend Increases:  19 Years
  • 2021 Dividend Increase: 12.7%
  • 5-Yr Average Dividend Growth Rate: 18.23%
  • Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #8: Verizon (VZ): 2022 has not been kind to Verizon (VZ). It is one of the dogs in our dividend stock portfolios (which we covered on our YouTube Channel)….for good reason. The company appears to be getting passed by rival T. Mobile. Now, like AT&T, Verizon is playing defense in a sector that requires significant investment and is slow moving. The company’s typical annual dividend increase is 2% (or so). I’m not expecting anything different this year compared to the last few.

  • Consecutive Dividend Increases:  17 Years
  • 2021 Dividend Increase: 2.0%
  • 5-Yr Average Dividend Growth Rate: 2.08%
  • Expected Timing of Dividend Announcement: Beginning of Month

Summary

I didn’t lie when I said there were some strong companies expected to announce dividend increases in September. Of this list, I own 5 stocks: McDonalds, Starbucks, Lockheed Martin, Philip Morris, and Verizon. That’s a pretty solid batting average if you ask me. The most important thing this tells me is that my dividend income is set to grow this month.  That’s why dividend investing is the best and we freaking love it. Let’s see if these companies deliver better than average dividend increases this month. Onward and upward!

How many of the companies on this list do you own? What dividend increases did you receive last month?! What dividend increases are you expected to receive in September?

Bert



Source link