dividend increases, dividend increases in February, Dividend Aristocrats

We are back with another installment of expected dividend increases. Each month, we predict the dividend increases that are supposed to be announced after the calendar turns. In this article, we will discuss 8 companies with expected dividend increases in July 2022. Continue reading to find out how many of the 8 companies you own, along with seeing our recap of the best dividend increases from June 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.

Earn 1.25% 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 (consecurtive 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 JUNE 2022

The market turbulence in June continued. Company’s continued to slash forecasts and update their earnings guidance as the impact of market headwands take shape. For many companies, the strong dividend growth we were seeing last year is no longer in the cards.

However, for a FEW SELECT COMPANIES, they still delivered absolutely INSANE DIVIDEND INCREASES. They were companies that caused us to stop in our tracks….and definitely share the news on Twitter. Here are 4 of our favorite dividend increases from June 2022.

  • Fedex (FDX): 53%
  • Kroger (KR): 23.8%
  • Target (TGT): 20%
  • Caterpillar (CAT): 8.1%

The featured dividend increase from this list is obviously Fedex. The company delivered an insane 53% dividend increase. Their yield is typically much lower than their archrival, UPS. That is why the company has stayed out of our portfolio over the years. At the beginning of 2022, UPS announced a 51% dividend increase. It is wild to us that Fedex found a way to beat UPS at their own dividend game. Hats off to Fedex, and Fedex shareholders, that received that insane 53% dividend increase.

Expected Dividend Increases in JULY 2022

Will July’s featured dividend increases live up to the crazy June dividend increases above? I sure as heck hope so. In this section, we will share 8 companies that SHOULD increase their dividend in the month of July. For each dividend stock, we will share the number of years increasing the dividend, the previous year’s dividend increase, the five-year average dividend growth rate, and the expected timing of the dividend announcement. Here are the 8 featured dividend increases in July!

Dividend Stock #1: Cummins (CMI): First up on this list is a company that is near, and dear, to our hearts. Lanny has been a Cummins shareholder forever and I started initiating a position several months ago. I purchased shares of CMI when the company was yielding 3%. That’s my benchmark for buying and quite frankly, I should have added a share or two this month when the market tanked.  We are very eager for this increase and curious to see if the company will remain consistent with its historical dividend growth rate of 7%, or will suprise us with a larger one!

  • Consecutive Dividend Increases: 16 Years
  • 2021 Dividend Increase: 7.4%
  • 5-Yr Average Dividend Growth Rate: 7.27%
  • Expected Timing of Dividend Announcement: Beginning of Month

Watch: Our Dividend Stock Purchases YouTube Playlist

Dividend Stock #2: Smuckers (SJM): It’s so great, it has to be Smuckers! Once again, Lanny and I are both shareholders  of this consumer staple giant. We love Smuckers’ brands (JIF, Smuckers, Folgers, Milkbone, etc.) because they are a critical part of our daily lives. Especially Lanny, because we all know how much he loves peanut butter. Last year’s dividend increase was freaking awesome. With inflatino hitting consumer staple stocks hard, I doubt that we will see another double digit dividend increase. Let’s see if they can prove me wrong. I’d welcome it!

  • Consecutive Dividend Increases: 12 Years
  • 2021 Dividend Increase: 10%
  • 5-Yr Average Dividend Growth Rate: 5.76%
  • Expected Timing of Dividend Announcement: Beginning of Month

Dividend Stock #3: Stanley Black & Decker (SWK) –  Alright. EVERYONE should know that I am pumped up about this upcoming dividend increase. My wife and I have been building our position in Stanley, Black, and Decker. The dividend king that has been beaten down in 2022. With almost 20 shares under our belt, this dividend increase should have a solid impact on our forward dividend income. Like Smuckers though, I’m not expecting a dividend increase like last year. This should be a lower dividend increase than 2021.

    • Consecutive Dividend Increases: 54 Years
    • 2021 Dividend Increase: 12.9%
    • 5-Yr Average Dividend Growth Rate: 6.45%
    • Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #4: Hershey (HSY) –  Everyone’s favorite product to eat. Seriously, what person doesn’t get excited when they get their hands on a Hershey’s chocolate bar. Now, what if you received a chocolate bar and a big dividend increase. Now how sweet would that be?! Hershey’s is building that dividend growth streak and is halfway to becoming a Dividend Aristocrat. With a dividend yield of 1.6%, shareholders are hoping for a solid increase!

  • Consecutive Dividend Increases: 12 Years
  • 2021 Dividend Increase: 12.1%
  • 5-Yr Average Dividend Growth Rate: 6.6%
  • Expected Timing of Dividend Announcement: End of Month

Dividend Stock #5: Scotts Miracle-Gro (SMG) –  Lanny has been riding the Scotts-Miracle Gro train for a while now. He continues to add shares as the company’s stock price slides. Slide may be the wrong term, because Scotts’ stock price is falling quickly. It is down from its peak high price last year of over $200 per share. Scotts is a mainstay in the lawncare sector and is a major part of our lives. I know we use their seed on a regular basis to keep our lawn healthy! With the company’s performance, my expectations for a dividend increase are very low.

  • Consecutive Dividend Increases: 12 Years
  • 2021 Dividend Increase: 6.5%
  • 5-Yr Average Dividend Growth Rate: 5.7% (Not including special dividends)
  • Expected Timing of Dividend Announcement: End of Month

Dividend Stock #6: Norfolk Southern (NSC) – The railroad sector is a lot of fun. Why?  The major railroads announce dividend increases twice per year. Norfolk Southern has already announced one dividend increase in 2022. It was very solid. The company annoucned a 13.7% dividend increase in January 2022. Let’s hope NSC delivers a second double digit increase. Their results should be fascinating given the rise in the price of oil and shipping costs. As a shareholder, I’ll be watching this one closely.

  • Consecutive Dividend Increases: 5 Years
  • 2021 Dividend Increase: 10.1%.
  • 5-Yr Average Dividend Growth Rate: 14.46%
  • Expected Timing of Dividend Announcement: End of Month

Dividend Stock #7: Walgrees Booth Aliance (WBA) –  Wow. This is going to be a huge month of dividend increases. I am also a shareholder of Walgreens Booth Alliance. The company’s dividend increases have been pathetic lately.  Solid yield and a massive dividend increase streak. This company is knocking on the door of becoming a Dividend King. Still, like so many on this list, my dividend increase expectations are relatively low.

  • Consecutive Dividend Increases: 46 Years
  • 2021 Dividend Increase: 2.1%
  • 5-Yr Average Dividend Growth Rate: 4.99%
  • Expected Timing of Dividend Announcement: Beginning of Month

Dividend Stock #8: Cintas (CTAS): The Dividend Aristocrat headquartered in the great state of Ohio. Cintas had a ridiculous dividend increase last year. The company’s business model is great (corporate clothing and cleaning). The one thing is I wish the dividend yield was higher. Currently, it is only 1%. Maybe that will change if the company announces another ridiculous dividend increase.

  • Consecutive Dividend Increases: 38 years
  • 2021 Dividend Increase: 26.7%
  • 5-Yr Average Dividend Growth Rate: 29 %
  • Expected Timing of Dividend Announcement: End of Month

Summary – Dividend Increases In July

Another fantastic list of great, dividend growth stocks. These are 8, solid dividend increases in July 2022 that should happen. Of the list, my wife and I own 6 of the 8 companies (all but Cintas and Hershey). This is doing to be an exciting month and hopefully, these companies all crush it and deliver higher than expected dividend increases. After all, one of these companies have to tell Fedex to hold our beer!

How many stocks from the list do you own? What dividend increases do you own from the list? Are you a Fedex shareholder?

-Bert





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