Recently Announced Dividend Raises

As dividend income investors we are constantly seeking reliable sources of passive income from profitable companies that share their revenues with shareholders. But most of us take it a step further than simply investing in dividend stocks. After all, what good is a dividend distribution if it is not sustainable and gets cut or worse eliminated? We seek the coveted dividend raiser. The elite group of companies that historically raise their dividend every year. With that being said I’d like to review some recent dividend increase announcements from many well known companies.

 

Dunkin’ Brands Group, Inc. (DNKN) recently announced a sweet 15.2% increase in its dividend raising its dividend from 23 cents to 26.5 cents. DNKN currently yields 1.94%.

 

Another raise comes from a very familiar name found in many dividend portfolios, Union Pacific Corporation (UNP). UNP announced an increase from 50 cents to 55 cents for a generous 10.0% growth in dividend. UNP currently yields 1.81%.

 

Farming for a higher yield is Archer-Daniels-Midland Company (ADM) which announced a healthy 16.7% dividend increase raising its dividend from 24 cents to 28 cents. ADM currently yields 2.35%.

 

Popular among the dividend bloggers, no doubt putting a smile on their faces, is United Technologies Corporation (UTX). UTX recently announced a dividend increase from 59 cent to 64 cents a share for an 8.5% dividend growth. UTX is currently yielding 2.14%.

 

Motoring down the dividend raise highway is General Motors Company (GM) with a very generous 20.0% increase raising its quarterly dividend from 30 cents to 36 cents. GM has a current yield of 3.33%.

 

Not to be outdone, Harley-Davidson, Inc. (HOG) added a bit more horsepower to its dividend raising it from 27.5 cents to 31 cents for a 12.7% increase. HOG currently yields 1.93%.

 

Industrial giant Ingersoll-Rand Plc (IR) announced a double digit dividend gain of 16.0% raising its quarterly payout from 25 cents to 29 cents a share. IR currently yields 1.74%.

 

Finally, L Brands, Inc. (LB) is dressing up its dividend distribution by increasing its quarterly payout from 34 cents to 50 cents a share for a whopping 47.0% increase. LB currently yields 2.15%.

 

Getting a dividend raise is always a welcome gesture. After all, who doesn’t like getting a raise? Are any of the companies mentioned in your portfolio? Please let me know below.

 

Disclosure: Long IR

26 thoughts on “Recently Announced Dividend Raises

  1. Wow, you put out some impressive dividend growth numbers on your portfolio, nice work! Unfortunately, I’m still learning, I have had any food, farm companies on my portfolio yet. Will see as the year go.

    • Hi Vivianne,

      Thank you for the kind words regarding my dividend growth. There’s nothing wrong with still learning about the market in general and how stocks function. The most important thing is for you to feel comfortable when you take that leap into the investing world. Before you know it you’ll have a diversified portfolio across many different sectors like many of the dividend bloggers you read about. Thank you for commenting.

  2. DivHut,

    That GM news definitely is a welcomed surprise. I started accumulating shares last summer after the news of the massive recall. I felt the shares were grossly undervalued and they still look cheap at current levels. However, I believe the news by GM management is an intention to raise the dividend. I haven’t seen the $.36 declared yet. I assume it will be though or it would not have been mentioned.

    MDP

    • Hi MDP,

      There’s no question the GM raise caught many off guard. I think GM is feeling shareholder pressure to perform as F does mimicking the dividend growth. Of course, both the GM and F raise can be sustained by current cash flow so there doesn’t seem to be any danger for the dividend. Congrats on loading up on the shares while they were beaten down too. The GM raise is still “unofficial” as no official date was set but it has already been leaked so I’m sure it will happen. Again, I think this announcement was timed to coincide with the recent F dividend raise of 20%. Thank you for stopping by and commenting.

    • Hi DG,

      I always say an increase is an increase. I know we all look for those double digit raises but I’ll gladly take single digit raises too. Just goes to show that even in a depressed commodity market, XOM can still offer a dividend raise. The resilience of this company definitely shows. Thank you for sharing your thoughts.

      • DivHut,

        I wasn’t aware Exxon Mobil increased its dividend. Do you have any information on this or were you just agreeing with the comment without looking into it? I track all increases, but XOM declared a $0.69 dividend as per usual on 1/27. Any insight?

        Best regards!
        Dividend Mantra recently posted…Recent BuyMy Profile

        • Hi DM,

          I was just commenting in general about dividend increases. You are correct in your statement regarding XOM. The dividend jumped from $0.63 in 2014 to the current $0.69 cents today. I do not have any news or insight beyond that. I guess that’s why I did not mention XOM in my list of dividend raisers. I appreciate you keeping the information on DivHut in check.

            • Hi DG,

              No problem. At first glance when I read your comment I too was not quite sure what you meant by the “1%” and assumed you were talking about a dividend increase even though I did not see that information anywhere. I was also trying to comment in general about dividend raises and not just referring to XOM. Thank you for the clarification. Again, no worries.

  3. The only company I own (albeit a very small position) is in DNKN with my Loyal3 account. It’s a speculative play for me at the moment. Are these companies on your watchlist? It looks like the only company from this list on your portfolio is IR.
    A Christian Investor recently posted…Bought: JNJMy Profile

    • Hi ACI,

      The only company I own from the list is IR with UTX on my watch list. UNP is another popular name among the dividend investors as well. As you can see from my portfolio I own quite a few names that have a long history of dividend raises and that’s really what I’m going for when building out a long term dividend growth portfolio. I’m more interested in the dividend growth than high current yield. Thank you for stopping by and commenting.

    • Hi KeithX,

      Happy to announce dividend increases. After all, that’s just one of reasons we invest in solid dividend payers. UTX is still on my watch list but not in my portfolio. I still may add it one day when my portfolio grows larger for additional diversity. Thank you for commenting.

    • Hi Henry,

      I can feel your pleasure. Anytime I read about a dividend increase in a stock that I own it’s cause for celebration too. Congrats on holding a high quality and diversified name like UTX. Thanks for commenting.

  4. Great news! I have both UNP and ADM in my portfolio, so it’s nice to see some dividend increases. That’s definitely one of the best things about owning dividend growth stocks, they constantly pay out more of their profits to us shareholders. Thanks for the update.

    – HMB
    HMB recently posted…Stuffing MoneyBags – January ’15My Profile

    • Hi HMB,

      Happy to hear that you own two names on the list. I think many people who are not dividend investors simply dismiss the power of long term dividend raising companies. Of course, we all know that getting single digit or double digit dividend increases every year can really compound an income stream long term. Thank you for stopping by and commenting.

  5. Hey Keith,

    Great post. As a huge fan of dividend-paying stocks I always love reading about the companies that either pay them or raise them year over year. One company I’ve had my eye on and off for a long time is Dunkin brands. However, have yet to pull the trigger considering they seem to have some fierce competition coming from companies like Starbucks. Many may argue you cant compare the two (specially considering dunkin prices are a whole lot cheaper). But the customer wants what it wants. I will continue to watch. I like they raised their dividends. I wonder what their payout ratio is. Thanks for sharing!

    • Hi TMTI,

      We all love getting those dividend raises which is why we invest in high quality, long term stocks that have a lengthy dividend history. DNKN has a current payout ratio of 57.0% which, based on current cash flow, is pretty safe with room for future increases. While a slightly different beast than SBUX it is basically in the same sector and feels the same economic effects, both positive and negative. Keep an eye out for those strong dividend payers. As always, I appreciate your comment.

    • Hi DGJ,

      Whether you own names on this list or not, I am sure that you hold many other high quality dividend raisers. These are the announcements that simply further our conviction in our long term investments and no doubt will give us all a greater yield on cost in the years to come. Let the compounding roll in. Thank you for commenting.

    • Hi DH,

      Thanks for the heads up regarding that special dividend. I was not aware of that announcement. It’s always nice when those extra dividends are paid when you least expect them. Kind of nice that management feels that much confidence going forward as well. I know VTR paid a special dividend recently for those in the healthcare REIT. Thank you for stopping by and commenting.

    • Hi BSR,

      I think many were surprised at the generous dividend increase of GM. To me it seems that GM is trying to match F in its dividend performance and woo back many long time shareholders. Prior to bankruptcy GM was as solid a dividend payer as any and many individuals held this stock for decades on end. Despite all the recent issues GM had with recalls I think their future commitment to dividends as well as increases demonstrates a willing to return to its former glory. Thank you for stopping by and commenting.

Leave a Comment

CommentLuv badge