The second half of 2023 is officially on the way! June ended with a bang from a dividend increase perspective. Now, it is time to make sure July delivers, too. In this article, we will look ahead and discuss the 7 expected dividend increases in July 2023!
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! In 2023, with high inflation, bank runs and other major events, buying undervalued dividend stocks that increase your dividend is as crucial as ever.
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!
ACTUAL Dividend Increases in JULY 2023
Before jumping ahead to July, let’s summarize the 4 expected dividend increases in June. Did the 4 companies deliver on the expectations?
- Kroger (KR): 11.5% dividend increase
- Target (TGT): 1.9% dividend increase
- Caterpillar (CAT): 8.3% dividend increase
- UnitedHealth Group (UNH): 13.9% dividend increase
Further, the fun didn’t just stop with the 4 increases listed above. A big surprise was Shell’s (SHEL) 15% dividend increase. The oil stock continues to rebound after its dividend cut at the onset of the pandemic!
Further, since it was the last month of the quarter, we were able to review the dividend increases from two of our favorite dividend-focused funds. VYM announced a 3.4% dividend increase compared to Q2 2023, while SCHD’s dividend actually decreased 6% compared to Q2 2022. WOW!
Lastly, let’s not forget about what happened on the last Friday of June. After the banks released the results of their stress tests, some of the largest banks announced solid dividend increases. JPMorgan (JPM) (5%), Citi (C) (4%), Wells Fargo (WFC) (16.7%) and others juiced their dividends! It was great for bank investors to receive positive news to end a tough quarter.
Expected Dividend Increases in JULY 2023
Now, on to the fun part. Let’s look ahead to July. The following dividend stocks are expected to announce dividend increases in July! Let us know how many you own. Dividend Yields are as of 6/30/2023.
Dividend Stock #1: Stanley, Black & Decker (SWK)
We are pumped up for this dividend increase. Over the last year, my wife has amassed a position of 41.3 shares. Any kind of dividend increase is going to have a material impact on our dividend income. SWK’s 2022 dividend increase was pathetic due to headwinds from a slowing DIY economy. Now that SWK’s stock price is rebounding and back in the $90s per share, will the company reward shareholders with a strong dividend increase? Or will they announce another prudent, small increase? I’m definitely pulling for the former!
- Dividend Yield: 3.41%
- Consecutive Dividend Increases: 54 Years
- 2022 Dividend Increase: 1.2%
- 5-Yr Average Dividend Growth Rate: 4.89%
- Expected Timing of Dividend Announcement: End of Month
Dividend Stock #2: Cummins (CMI)
Next up on the list. Cummins. I have a very small position in Cummins, while Lanny has a much larger stake in the company. This stock has been on a tear over the last few years. I would buy when CMI’s dividend yield is over 3%. Now, we have a long way to go before they enter the buy zone once again. Cummins’ dividend growth has been consistent lately. Their dividend increase is typically high single digit. This year, I’m expecting the same once again.
- Dividend Yield: 2.56%
- Consecutive Dividend Increases: 17 Years
- 2022 Dividend Increase: 8.2%
- 5-Yr Average Dividend Growth Rate: 7.7%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #3: J. M. Smucker (SJM)
Ah, Smuckers. It tastes so good, it has to be Smuckers! Despite a small sale in my portfolio (2 shares last month), we still hold a solid Smuckers position in my wife’s portfolio. Thus, like the two changes before Smuckers, we are set to benefit from a dividend increase. Food stocks are interesting and are in a weird situation with inflation and potential changes to consumer demand. Therefore, I’m tampering expectations for the current dividend increase and will expect a low single digit dividend increase.
- Dividend Yield: 2.76%
- Consecutive Dividend Increases: 19 Years
- 2022 Dividend Increase: 3%
- 5-Yr Average Dividend Growth Rate: 5.51%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #4: Hershey (HSY)
This is the one stock I’ve always wanted to own, but have never found the right time to buy. Hershey has one of the most iconic brands. Let’s be honest, the company also makes fantastic chocolate as well. Hershey is halfway to becoming a Dividend Aristocrat. The company will take one more step here in July when they announce a dividend increase. I’m expecting a dividend increase in line with the company’s 5-year average dividend growth rate.
- Dividend Yield: 1.66%
- Consecutive Dividend Increases: 13 Years
- 2022 Dividend Increase: 14.9%
- 5-Yr Average Dividend Growth Rate: 9.57%
- Expected Timing of Dividend Announcement: End of Month
Dividend Stock #5: Walgreens Boots Alliance (WBA)
I was on the fence about including Walgreens. The Dividend Aristocrat is really struggling right now. Last week, Walgreens announced terrible guidance and major cost-cutting initiatives. Now, Walgreens is set to close 450 stores in an effort to reduce costs. I doubt the company announces anything larger than a .5% dividend increase this month (like last year). Transparently, I wouldn’t be shocked if they announce a dividend cut instead of a dividend increase this month. Sadly, since we are shareholders, we will be watching this dividend increase closely.
- Dividend Yield: 6.74%
- Consecutive Dividend Increases: 30 Years
- 2022 Dividend Increase: .5%
- 5-Yr Average Dividend Growth Rate: 3.74%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #6: Cintas (CTAS)
The corporate uniform and supply company is set to announce a dividend increase in July! I’m not overly familiar with the stock. Despite a 20% average dividend growth rate, the company has remained off my radar due to its low dividend yield and high valuation. Still, as I said earlier, I love ALL dividend increases. I’m hoping Cintas shocks us all with another 20% dividend increase banger in July!
- Dividend Yield: .93%
- Consecutive Dividend Increases: 11 Years
- 2022 Dividend Increase: 21%
- 5-Yr Average Dividend Growth Rate: 23%
- Expected Timing of Dividend Announcement: End of Month
Dividend Stock #7: Mondelez (MDLZ)
Last, but definitely not least, we are heading back to the food and snack sector. Mondelez has some of the most iconic international brands out there. Plus, the company has a pretty tasty dividend growth rate. See what we did there! This one will be interesting. It may be hard to announce another double-digit dividend increase in this economic environment; however, I’m going to go out on a limb and say the company will do it!
- Dividend Yield: 2.11%
- Consecutive Dividend Increases: 9 Years
- 2022 Dividend Increase: 10%
- 5-Yr Average Dividend Growth Rate: 11.84%
- Expected Timing of Dividend Announcement: End of Month
Summary
There we have it! 7 Dividend increases expected in July 2023. One dividend king and 7 other great dividend growth stocks. The one I am looking forward to most is Stanley, Black & Decker since we have amassed such a large position in the company. Still, though, I’m always happy to see every other company grow their income. Why? Because we are all on this journey to financial freedom together!
How many of the 7 dividend stocks do you own on this list? What other dividend increase in July are you expecting? What stocks increased your income in June as well?
Original Post
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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