Dividend Increases V 2017

Hey guys it has been a while since my last dividend increase article. The reason is quite simple there were just not that many increases to write a whole article about. But in the mean time there were four companies which increased their dividend in the last two months.

Being a dividend investor has two major advantages, first of all you do not rely that much on the changes of the share price and when the stock price is on a very low level you just collect the dividends and maybe take advantage of the low share price and buy even more stocks. As  I mentioned already since I have started to invest in dividend stocks I have not experienced one dividend cut so far and this time the following companies have increased their dividends:

  • MO: Yearly dividend from 2.44 to 2.64 USD 8.20% increase
  • VZ: Yearly dividend from 2.31 to 2.36 USD 2.16% increase
  • PM: Yearly dividend from 4.16 to 4.28 USD 2.88% increase
  • WFC: Yearly dividend from 1.52 to 1.56 USD 2.63% Increase

In general all 4 dividend increases were solid ones and not really spectacular. But in the cases of VZ, PM WFC I did not expect a large dividend increase, based on their current business development. I think it is even better when the management acts responsible when their business is struggling a little bit.

I was a little surprised by the increase of MO as I did not expect such a relatively large increase, but no matter I take it :).

Based on the numbers of shares I have of each company and the already published dividend increases it makes now an average dividend increase of 4.35%, which is behind my goal of 7.5%. But I am looking forward to seeing the remaining dividend increases this year like CVS or AbbVie and some others still have not announced their dividend increases for this year.

How much more income do I generate

In total I am generating now 50.50 EUR more dividend income before tax and based on a constant FX-Rate. If you look at this number, this does not look a lot but considering my current dividend yield before taxes of 3.92% it would mean an additional investment of 1 288.19 EUR. 

So, after all the 50.50 EUR do not look that bad anymore. Nevertheless I have to admit that I am behind my goal to generate an average increase of 7.5%. But let’s see what the other increases for the rest of the year will look like.

My new projected full year dividend income is now at 1 470.19 EUR after tax, that is almost double the income I had one year ago. Of course a lot comes from additional investments, but dividend increases are also a small part of it and the more stocks I have the higher will be the effect of dividend increases in the future.

What is your current dividend increase rate or are you actually tracking it?

Disclosure: Long MO, VZ, PM, WFC

3 Comments

  1. Yes, right now it is all about how much you can hustle and save. Eventually, the table will turn and what you hustle and add won’t matter as much as what the portfolio is able to increase by itself.

    You just have to never stop and you will get there!

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