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Walmart, Home Depot Among 15 Companies To Announce Dividend Increases In Second Half Of February

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Walmart will denote its yearly dividend summation successful nan 2nd half of February, extending nan company's dividend maturation streak to 50 years.

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This is nan latest successful my bid of articles wherever I supply predictions of yearly dividend increases for a assortment of semipermanent dividend maturation companies. At nan extremity of January, I provided predictions for 23 dividend maturation companies that person historically announced yearly payout increases successful nan first half of February. In this article I’ll look astatine different 14 dividend maturation companies that I expect will denote their yearly dividend increases successful nan 2nd half of February.

Before I get to that, location were galore different semipermanent dividend maturation companies that announced yearly increases successful nan first half of nan month. Among them:

- I had prepared a prediction for Coca-Cola (KO) for this article, but nan beverage institution announced a 4.5% dividend summation to an annualized $1.84 connected nan 16th. This is Coke’s 61st twelvemonth of dividend growth; nan institution now has a guardant output of 3.06%.

- Regional banks Commerce Bancshares (CBSH) and Southside Bancshares (SBSI) some announced dividend increases. Including a 5% stock dividend, Commerce Bancshares 55th twelvemonth of dividend maturation is simply a 7% summation and gives nan institution a guardant output of 1.61%. Southside Bancshares’ 2.9% dividend boost is nan company’s 29th twelvemonth of dividend maturation and gives nan institution a guardant output of 3.60%.

- Two REITs besides announced dividend increases: retention institution Extra Space Storage (EXR) announced an 8% increase, resulting successful a guardant output of 4.08%. Residential REIT UDR, Inc. (UDR) announced a 10.5% increase, giving nan institution a guardant output of 3.75%. This is nan 14th and 15th twelvemonth of dividend maturation for Extra Space Storage and UDR, respectively.

- Hawkins (HWKN) announced its 19th twelvemonth of dividend maturation pinch a 7.1% boost to springiness nan specialty chemic institution a guardant output of 1.45%.

Here are nan results from my predictions from nan first half of February (as always, nan original predictions are disposable successful my erstwhile article), followed by my predictions for nan dividend increases that I’m expecting to beryllium announced successful nan 2nd half of February:

(All yields are based connected banal prices astatine nan marketplace adjacent connected Friday, February 17th.)

Results for Dividend Increase Announcements from nan First Half of February

Analog Devices (ADI) – 21 years of dividend growth

Prediction: 9.9 – 11.8% summation to $3.34 - $3.40

Actual: 13.2% summation to $3.44

Forward yield: 1.79%

The chipmaker’s 50% maturation successful adjusted EPS drove a bully summation this year.

Allegion plc (ALLE) – 10 years

Prediction: 3.7 – 6.1% summation to $1.70 - $1.74

Actual: 9.8% summation to $1.80

Forward yield: 1.52%

The information institution fell conscionable short of different double-digit boost.

Avista Corporation (AVA) – 21 years

Prediction: 2.3 – 4.0% summation to $1.80 - $1.83

Actual: 4.5% summation to $1.84

Forward yield: 4.51%

The power supplier hit my expectations arsenic it originates its 3rd decade of dividend growth.

Church & Dwight Co., Inc. (CHD) – 27 years

Prediction: 3.8 – 4.8% summation to $1.09 - $1.10

Actual: 3.8% summation to $1.09

Forward yield: 1.30%

This is nan 5th twelvemonth of 4 aliases 5 cent yearly dividend maturation for nan Arm & Hammer marque owner.

Cisco Systems, Inc. (CSCO) – 13 years

Prediction: 2.6 – 3.9% summation to $1.56 - $1.58

Actual: 2.6% summation to $1.56

Forward yield: 3.07%

The networking institution came successful pinch its 2nd twelvemonth of sub-3% dividend growth.

Quest Diagnostics Incorporated (DGX) – 13 years

Prediction: 6.1 – 7.6% summation to $2.80 - $2.84

Actual: 7.6% summation to $2.84

Forward yield: 1.92%

On apical of nan dividend increase, nan aesculapian diagnostics institution besides announced a $1 cardinal stock buyback program.

Eversource Energy (ES) – 25 years

Prediction: 5.9 – 7.1% summation to $2.70 - $2.73

Actual: 5.9% summation to $2.70

Forward yield: 3.36%

Eversource’s latest summation is accordant pinch nan company’s semipermanent maturation nonsubjective of betwixt 5 and 7%.

Exponent, Inc. (EXPO) – 11 years

Prediction: 12.5 – 18.8% summation to $1.08 - $1.14

Actual: 8.3% summation to $1.04

Forward yield: 0.96%

The engineering consulting patient traditionally has boosted its dividends by astatine slightest 10%, but it looks for illustration nan “law of ample numbers” is catching up to it.

Corning Incorporated (GLW) – 13 years

Prediction: 5.6 – 9.3% summation to $1.14 - $1.18

Actual: 3.7% summation to $1.12

Forward yield: 3.15%

With EPS down for nan shaper of solid panels, Corning rewarded investors pinch a mini 4-cent boost.

Genuine Parts Company (GPC) – 66 years

Prediction: 8.9 – 11.7% summation to $3.90 - $4.00

Actual: Deferred to precocious February

The car parts institution will apt denote its latest dividend summation erstwhile it reports net connected February 23rd.

ITT Inc. (ITT) – 11 years

Prediction: 13.6 – 17.4% summation to $1.20 - $1.24

Actual: 9.8% summation to $1.16

Forward yield: 1.23%

With fiscal 2022 adjusted EPS maturation of beneath 9%, ITT’s latest summation is simply a alteration from past year’s 20% boost.

Jack Henry & Associates, Inc. (JKHY) – 33 years

Prediction: 5.1 – 7.1% summation to $2.06 - $2.10

Actual: 6.1% summation to $2.08

Forward yield: 1.23%

With GAAP and adjusted EPS down truthful acold successful fiscal 2023, Jack Henry’s latest boost is beneath its semipermanent maturation average.

Moody’s Corporation (MCO) – 14 years

Prediction: 7.9 – 10.7% summation to $3.02 - $3.10

Actual: 10.0% summation to $3.08

Forward yield: 1.02%

Dividend maturation continues to slow astatine nan financial accusation institution but is still outpacing inflation.

3M Company (MMM) – 65 years

Prediction: 0.7 – 1.3% summation to $6.00 - $6.04

Actual: 0.7% summation to $6.00

Forward yield: 5.31%

It’s different twelvemonth of minimal dividend maturation for 3M arsenic it struggles pinch ostentation and proviso concatenation issues.

NextEra Energy, Inc. (NEE) – 29 years

Prediction: 9.4 – 11.8% summation to $1.86 - $1.90

Actual: 10.0% summation to $1.87

Forward yield: 2.46%

NextEra deed its declared intent of boosting dividends by 10% this year. The institution has stated that it intends to compound its dividend by 10% done astatine slightest adjacent year.

NorthWestern Corporation (NWE) – 19 years

Prediction: 0.8 – 1.6% summation to $2.54 - $2.56

Actual: 1.6% summation to $2.56

Forward yield: 4.38%

This is nan 2nd consecutive twelvemonth of minimal dividend maturation from nan utility.

Public Service Enterprise Group Incorporated (PEG) – 12 years

Prediction: 2.8 – 4.6% summation to $2.22 - $2.26

Actual: 5.6% summation to $2.28

Forward yield: 3.66%

The inferior rewarded investors pinch different 6% dividend increase.

PepsiCo, Inc. (PEP) – 51 years

Prediction: 6.5 – 7.8% summation to $4.90 - $4.96

Actual: 10.0% summation to $5.06

Forward yield: 2.87%

The soft portion and snack company’s dividend maturation accelerated from past year’s 7% boost.

Prudential Financial, Inc. (PRU) – 15 years

Prediction: 4.2 – 5.8% summation to $5.00 - $5.08

Actual: 4.2% summation to $5.00

Forward yield: 4.92%

This is nan security company’s 2nd twelvemonth of 4% dividend growth, which is good beneath its humanities maturation rate.

The Sherwin-Williams Company (SHW) – 45 years

Prediction: 5.0 – 8.3% summation to $2.52 - $2.60

Actual: 0.8% summation to $2.42

Forward yield: 1.06%

The overgarment and coatings company’s latest yearly dividend summation was a mini 2 cents.

T. Rowe Price Group (TROW) – 37 years

Prediction: 5.0 – 6.3% summation to $5.04 - $5.10

Actual: 1.7% summation to $4.88

Forward yield: 4.11%

The carnivore marketplace caused assets nether guidance to fall, decreasing revenues and forcing a minimal dividend summation this year.

United Parcel Service, Inc. (UPS) – 14 years

Prediction: 7.9 – 9.2% summation to $6.56 - $6.64

Actual: 6.6% summation to $6.48

Forward yield: 3.54%

The proscription and logistics company’s latest summation is correct successful statement pinch EPS growth.

Xylem Inc. (XYL) – 12 years

Prediction: 6.7 – 10.0% summation to $1.28 - $1.32

Actual: 10.0% summation to $1.32

Forward yield: 1.23%

Powered by 21% EPS maturation successful 2021 and different 8% successful 2022, nan h2o exertion institution collapsed its streak of 8-cent yearly increases pinch this year’s 10% boost.

Predictions for Dividend Increases for nan Second Half of February

There are different 14 companies I expect to denote their yearly dividend increases successful nan 2nd half of February. First, present are my predictions for 2 featured companies:

The Home Depot, Inc. (HD) – 13 years of dividend growth

The location betterment retailer is simply a rate travel machine. With a compounded maturation complaint of much than 16% complete nan past 5 years and having retired much than 13% of its outstanding shares since 2018, Home Depot continues to reward investors. The company’s increasing net person caused nan banal to astir double complete nan past 5 years – a compounded complaint of astir 13.5% annually. Home Depot is projecting this year’s EPS maturation successful nan mid-single digits and, truthful acold income are up 5% year-over-year, pinch mean income receipt maturation of astir 10% much than offsetting a 5% driblet successful nan number of transactions.

On nan downside, Home Depot sports a very precocious debt-to-equity ratio. In addition, this year’s expected maturation complaint doesn’t support different ample dividend increase. Is this nan twelvemonth that Home Depot’s boost isn’t successful nan double-digits? Perhaps, but I deliberation that nan company’s payout ratio of 50% leaves room for a boost supra 10%.

Prediction: 9.5 – 12.6% summation to $8.32 - $8.56

Predicted Forward Yield: 2.62 – 2.69%

Walmart Inc. (WMT) – 49 years

The discount mega-retailer has shown a singular capacity to support income growing, contempt its size. As it continues to grow, however, nan company’s dividend maturation is slowing. Over each of nan past 9 years, Walmart has boosted its yearly dividend by only 4 cents, culminating successful a meager 1.8% summation past twelvemonth – not capable to support up pinch inflation. Will it beryllium a afloat decade of 4-cent yearly growth? Well, let’s return a look astatine Walmart’s earnings.

When nan institution reported net successful February 2022, adjusted net grew by astir 18%. Despite this, Walmart announced dividend summation of little than 2%. This year, nan institution is guiding investors to expect a diminution of adjusted EPS by 6.5 to 7.5%. With this decrease, I uncertainty nan institution will denote a larger dividend boost, though there’s a chance Walmart mightiness support nan dividend maturation astatine astir 2% pinch a 6-cent increase. Reinforcing this position is nan truth that Walmart is readying different $10 cardinal of stock buybacks successful fiscal 2023 and precocious approved different $20 cardinal stock buyback authorization. In fact, Walmart has repurchased 7% of each its outstanding shares complete nan past 5 years and seems to beryllium putting its excess rate travel towards stock buybacks alternatively of dividends.

Despite its size, Walmart remains a rate travel instrumentality and investors tin expect nan institution to complete half a period of dividend maturation successful precocious February.

Prediction: 1.8 – 2.7% summation to $2.28 - $2.30

Predicted Forward Yield: 1.56 – 1.57%

Here are my predictions for 12 different companies which should denote yearly increases successful nan 2nd half of February:

Company # Yrs Industry Prediction (%) New Annual Rate
Albemarle Corporation (ALB) 28 Specialty Chemicals 7.6 – 13.9% $1.70 - $1.80
With nan accelerating finance successful electrical vehicles, lithium shaper Albemarle is well-poised to benefit. The institution has invested successful further lithium mines astir nan world and, arsenic a result, adjusted EPS are exploding. The institution is projecting that adjusted EPS will quadruple successful 2022, which will mean a larger dividend boost compared to past year’s minimal 1.3% increase. Predicted Forward Yield: 0.66 – 0.70%
Best Buy Co., Inc. (BBY) 19 Specialty Retail 9.1 – 11.4% $3.84 - $3.92
Although nan electronics retailer has an awesome 10-year dividend maturation complaint of 18%, nan company’s driblet successful EPS aft a blockbuster 2021 intends investors tin expect a slowing of dividend maturation to astir 10%. Predicted Forward Yield: 4.42 – 4.51%
Chubb Limited (CB) 29 Insurance 2.4 – 3.6% $3.40 - $3.44
The security company’s nett income fell connected finance portfolio losses but operating income roseate 21% arsenic policies and premiums were up. It’ll beryllium a 10th twelvemonth of 8 – 12 cent yearly dividend maturation for Chubb, which should denote its dividend proposal successful precocious February. Predicted Forward Yield: 1.61 – 1.63%
Essex Property Trust (ESS) 28 REIT - Residential 5.0 – 7.0% $9.24 - $9.42
Essex Property focuses connected westbound seashore flat complexes. The institution was capable to walk connected rent increases to its tenants, boosting halfway costs from operations (a metric akin to net but that takes nan taxation benefits of spot ownership into account). While nan institution is looking astatine level FFO maturation successful 2023, investors tin expect a somewhat higher dividend boost than past year’s 5% increase. Predicted Forward Yield: 3.90 – 3.98%
Leggett & Platt, Inc. (LEG) 51 Furnishings, Fixtures & Appliances 0 – 0.6% $1.76 - $1.77
The shaper of bedding and car spot systems is going done unsmooth times correct now, pinch 2022 EPS down 23% and an anticipation that 2023 EPS will beryllium down different 25%. I expect nan institution to either defer its yearly dividend summation aliases boost it by arsenic small arsenic possible. Predicted Forward Yield: 5.08 – 5.11%
McGrath RentCorp (MGRC) 31 Rental & Leasing Services 6.7 – 9.9% $1.94 - $2.00
McGrath RentCorp provides modular buildings, portable storage, and physics trial instrumentality to different businesses. The company’s net are rebounding successful 2022 aft falling successful 2021. The company’s dividend maturation fell short past year, pinch nan 4.6% boost good beneath nan 5-year mean of 12%. With nan renewed net growth, investors tin look guardant to a larger boost this year. Predicted Forward Yield: 1.81 – 1.87%
Old Republic International Corporation (ORI) 41 Insurance 4.3% $0.96
Insurer Old Republic traditionally boosts its yearly dividend by 4 cents and follows up pinch a typical dividend successful nan 3rd 4th of nan almanac year. With 2022 halfway EPS down 9% to $2.79, nan institution has plentifulness of headroom for different yearly summation but whitethorn not denote a typical dividend this year. Predicted Forward Yield: 3.62%
Silgan Holdings, Inc. (SLGN) 18 Packaging & Containers 12.5 – 15.6% $0.72 - $0.74
The shaper of packaging solutions for user products has a compounded dividend maturation complaint of much than 12% complete nan past 5 years. Adjusted EPS were up 17% successful 2022, meaning investors tin look guardant to different twelvemonth of double-digit payout growth. Predicted Forward Yield: 1.34 – 1.38%
SpartanNash Company (SPTN) 12 Food Distribution 9.5 – 11.9% $0.92 - $0.94
Dividend maturation has slowed complete nan past fewer years astatine nan nutrient distribution company, from a 11% maturation complaint complete nan past decade to 5% complete nan past 5 years. In opposition to past twelvemonth erstwhile EPS fell, nan institution is expecting adjusted EPS to turn by double-digits erstwhile it announces net results connected February 23rd. I expect SpartanNash to denote a double-digit payout summation astir a week aft that. Predicted Forward Yield: 2.87 – 2.93%
Sempra (SRE) 19 Utilities - Diversified 3.9 – 5.7% $4.76 - $4.84
The power infrastructure institution is aiming for yearly 6 – 8% EPS maturation done 2025. The institution whitethorn travel successful a small short this year, pinch mid-point guidance coming successful astatine 5%. Investors tin expect different 4% boost from Sempra. Predicted Forward Yield: 3.00 – 3.05%
Southwest Gas Holdings, Inc. (SWX) 17 Utilities - Regulated Gas 2.4 – 4.0% $2.54 - $2.58
Lower revenues and higher operating expenses from inflationary pressures resulted successful a 27% driblet successful nan first 3 quarters of 2022, compared to nan aforesaid play successful 2021. This will put unit connected nan company’s adjacent dividend summation – investors tin expect a boost astatine aliases beneath past year’s 4.2% increase. Predicted Forward Yield: 3.90 – 3.96%
Telephone and Data Systems, Inc. (TDS) 48 Telecom Services 0 – 2.8% $0.72 - $0.74
The wireless institution is investing heavy successful precocious velocity fibre connections for its customers, which is hitting profitability. EPS successful 2021 were down by astir 50% from 2020, and TDS is looking astatine different 21% driblet for 2022. The institution mightiness determine to defer its dividend boost to later successful nan year. Predicted Forward Yield: 5.26 – 5.40%

Summary

February is nan apical period erstwhile it comes to yearly dividend increases. I covered 27 companies that announced yearly dividend successful nan first half of nan period successful this article, pinch different 15 companies coming up successful nan second half of February. The highlights from nan first half of nan period see double-digit boosts from PepsiCo, Analog Devices, Moody’s, NextEra Energy, and Xylem. PepsiCo holds a title arsenic a dividend king – a institution that has boosted dividends by astatine slightest half a century. Another dividend king, 3M, besides announced its yearly dividend increase. However, it was a disappointing 1 – conscionable capable to widen its dividend maturation streak to 65 years. Dividend king Coca-Cola extended its streak to 61 years pinch a 4.5% boost.

The 2nd half of nan period will spot different institution subordinate nan ranks of dividend kings, arsenic Walmart announces its 50th yearly dividend boost. Good increases are expected from packaging institution Silgan Holdings, car parts shaper Genuine Parts, and lithium shaper Albemarle, while utilities Southwest Gas and Sempra Energy should denote increases successful nan low-to-mid azygous digits.

This article was written by

Harvesting Dividends floor plan picture

I'm an individual investor looking to turn my wealthiness complete nan agelong term. I've tried galore different styles of investing complete nan past 25 years and person recovered that buying dividend maturation stocks and reinvesting nan dividends is 1 of nan easiest ways to turn wealthiness complete nan agelong term. Over nan years, I've owned stocks, options, ETFs, treasury notes, and communal funds. I run a blog, HarvestingDividends.com, that provides accusation connected nan S&P Dividend Aristocrats and different dividend maturation stocks.

Disclosure: I/we person a beneficial agelong position successful nan shares of MMM, ORI, PRU, WMT either done banal ownership, options, aliases different derivatives. I wrote this article myself, and it expresses my ain opinions. I americium not receiving compensation for it (other than from Seeking Alpha). I person nary business narration pinch immoderate institution whose banal is mentioned successful this article.

Additional disclosure: I whitethorn return a position successful immoderate of nan stocks mentioned successful this article successful nan adjacent future.

Editor: Naga



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