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We are always on the lookout for dividend increases! Whether it is on our website or social media platforms, we are always sharing dividend increase news. In this article, we are featuring 8 expected dividend increases in March 2024!
Why do we suspect these companies are going to announce a dividend increase in March? The dividend stocks featured in this article all have a history of announcing their annual dividend increases in March. The funny thing about large, blue-chip dividend paying stocks is that they are generally pretty consistent with dividend announcements. Management teams prefer announcing and paying dividends around the same time every quarter. Plus, shareholders like us also enjoy the predictability and consistency of dividend payments. Especially once you retire and live off of your dividend income!
The same consistency applies for dividend increase announcements. For the most part, companies announce their annual dividend increases in the same month every year. (Of course, there are always exceptions to the rule.) Each of the featured dividend stocks, when reviewing their history, all have announced dividend increases in March in recent history. That is why we are so confident that each of the featured dividend stocks will once again increase its dividend in March.
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 2024, with high inflation, 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 third 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 its five-year average dividend growth rate!
Actual Dividend Increases in February 2024
Last month, we featured 11 dividend stocks that were expected to announce dividend increases in February. Let’s see how the actual dividend increases compared to each stock’s five-year average dividend growth rate.
Coca-Cola (KO): 5.4% increase (ABOVE Five-Year Average of 3.36%) 3M Company (MMM): .7% increase (BELOW Five-Year Average of 1.98%) PepsiCo (PEP): 7.1% increase (ABOVE Five-Year Average of 6.63%) Genuine Parts Company (GPC): 5.3% (BELOW Five-Year Average of 5.7%) T. Rowe Price (TROW): 1.6% (BELOW Five-Year Average of 11.75%) Walmart (WMT): 9% Post Stock Split (ABOVE Five-Year Average of 1.85%) United Parcel Service (UPS): .6% (BELOW Five-Year Average of 12.23%) Home Depot (HD): 7.7% (BELOW Five-Year Average of 15%) Allstate (ALL): 3.4% (BELOW Five-Year Average of 14.11%) Cisco (CSCO): 2.6% (BELOW Five-Year Average of 3.45%) Sherwin-Williams (SHW): 18.2% (ABOVE Five-Year Average of 16.11%)
In total, 4 of the 11 dividend stocks announced dividend increases above the five-year average dividend growth rate. This continues to be a trend that we have noticed and observed to date. We may be in store for a low dividend growth year in 2024 due to headwinds in the economy and the impact of inflation.
Expected Dividend Increases in March 2024
Now, let’s look ahead to March 2024 and review the expected dividend increases in the upcoming month. We are expecting 8 dividend increases, fewer than the insane number of dividend stocks that announced increases last month.
In this section, we will present two dividend yields: the current dividend yield as of 2/28/24 and the forecasted dividend yield. The forecasted dividend yield is the potential future dividend yield for the stock if management announces a dividend increase in line with their five-year average dividend growth rate.
Dividend Stock #1: General Dynamics (GD)
The first dividend stock on this list is one in my dividend stock portfolio. I don’t have a particularly large position; however, every dividend counts, regardless of the size. The military budget continues to grow and provide defense companies with billion-dollar contracts. The large top-line contracts have led to modest growth for General Dynamics over the last five years.
Current Dividend Yield: 1.93% (as of 2/28/24)
Forecasted Dividend Yield: 2.07%
Consecutive Dividend Increases: 29+
2023 Dividend Increase: 4.73%
5-Yr Average Dividend Growth Rate: 7.26%
Expected Timing of Dividend Announcement: Beginning of Month
Dividend Stock #2: Oracle Corporation (ORCL)
Now this is the most fascinating expected dividend increase on this list, in my opinion. Interestingly, despite the current tech boom (led by AI), Oracle is only up ~6% in 2024. The strong performance in the tech sector has allowed the company to announce strong dividend increases over the last five years.
Current Dividend Yield: 1.44% (as of 2/28/24)
Forecasted Dividend Yield: 1.67%
Consecutive Dividend Increases: 9+
2023 Dividend Increase: 25%
5-Yr Average Dividend Growth Rate: 16.05%
Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #3: Colgate-Palmolive Company (CL)
Colgate-Palmolive is the only Dividend King on this list. The consumer staple giant is a low-dividend yield, low-dividend growth stock. That is why I have always avoided adding to CL in my dividend stock portfolio. Dividend stocks are often boring and predictable. However, CL is the poster child of consistent dividend increases, even though the increases are consistently lower.
Current Dividend Yield: 2.22% (as of 2/28/24)
Forecasted Dividend Yield: 2.28%
Consecutive Dividend Increases: 60+
2023 Dividend Increase: 2.1%
5-Yr Average Dividend Growth Rate: 2.71%
Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #4: Best Buy Co. (BBY)
The electronics retailer is down 4% over the last 52 weeks. Best Buy is in a fascinating position in 2024, especially with the state of the economy. Shoppers continue to spend and rack up consumer debt despite high interest rates and inflation. If an economic slowdown occurs, Best Buy’s top-line will face pressure, just like any other retailer. Will management keep its dividend increase lower, like in 2023, or will they return to a double-digit dividend increase that is more in line with the company’s five-year average dividend growth rate?
Current Dividend Yield: 4.65% (as of 2/28/24)
Forecasted Dividend Yield: 5.36%
Consecutive Dividend Increases: 13+
2023 Dividend Increase: 4.5%
5-Yr Average Dividend Growth Rate: 15.38%
Expected Timing of Dividend Announcement: Beginning of Month
Dividend Stock #5: Dollar General (DG)
This has been a tough 52 weeks for Dollar General. The stock is down over 33% in the last 52 weeks. DG is now trading at discount prices that are in line with the prices in the company’s stores (couldn’t resist the dad joke). DG has offered strong dividend growth over the last five years. Heck, even its 2023 dividend increase was strong. Based on all the negative news and struggles, the company’s dividend increase will more likely than not be lower than historical standards. That would be the prudent move for DG’s management team.
Current Dividend Yield: 1.64% (as of 2/28/24)
Forecasted Dividend Yield: 1.88%
Consecutive Dividend Increases: 6+
2023 Dividend Increase: 7.2%
5-Yr Average Dividend Growth Rate: 15.26%
Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #6: Williams-Sonoma (WSM)
This retail stock is on its way to becoming a Dividend Aristocrat. Williams-Sonoma is on fire over the last 52 weeks. This dividend stock is up 86%! If you expand the time horizon, WSM is up over 300% in the last five years. Management has been able to maintain strong revenue, earnings and dividend growth over this five-year time horizon. With such strong results, a strong dividend increase should be on the horizon.
Current Dividend Yield: 1.54% (as of 2/28/24)
Forecasted Dividend Yield: 1.78%
Consecutive Dividend Increases: 17+
2023 Dividend Increase: 15.38%
5-Yr Average Dividend Growth Rate: 15.92%
Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #7: American Tower Corp. (AMT)
American Tower is a REIT that we have been adding to my wife’s portfolio lately. Her position is now over 20 shares. AMT announces dividend increases every single quarter. Overall, each quarterly dividend increase is consistent.
American Tower is not a high-yielding REIT. It is an outlier in a sector that is known for large dividend yields. Luckily, AMT makes up for its lower yield with a strong dividend growth rate. The stock’s five-year average dividend growth rate is over 15%.
Current Dividend Yield: 3.64% (as of 2/28/24)
Forecasted Dividend Yield: 3.81% (Using Last Quarter’s Increase)
Consecutive Dividend Increases: 11+
Last Quarter Increase: 4.9%
5-Yr Average Dividend Growth Rate: 15.41%
Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #8: Realty Income (O)
The monthly dividend-paying REIT is set to announce its standard, quarterly dividend increase. Realty Income is a Dividend Aristocrat and announced dividend increases for 26+ consecutive years. However, what is even more impressive is the fact that they have announced dividend increases for over 100 consecutive quarters. The dividend increases are not large. In fact, the quarterly dividend increases are tiny. However, the dividend increases add up over time. I’ve been buying a lot of shares of Realty Income lately and have grown our position to 210+ shares. You bet that I’m excited for this dividend increase announcement.
Current Dividend Yield: 5.88% (as of 2/28/24)
Forecasted Dividend Yield: 5.89% (Using Last Quarter’s Increase)
Consecutive Dividend Increases: 26+
Last Quarter Increase: .1%
5-Yr Average Dividend Growth Rate: 3.66%
Expected Timing of Dividend Announcement: Middle of Month
Summary
There is the list. 8 dividend increases expected in March 2024. Of course, there will be other stocks that are expected to announce dividend increases that were not featured on this list. We can’t get to them all! If you know of a stock we left out of our Big 8, please share them in the comment section below.
From this list, I own 3 dividend stocks: GD, AMT and O. Hopefully, in March, we will have more than 50% of the featured dividend stocks announce above-average dividend increases.
How many dividend stocks from this list do you own? Are you expecting the trend of lower dividend growth to reverse in 2024?