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

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

Wolterk

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:

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.

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.