Dividend growth investing is a popular model followed by the investing community to build assets. Companies which not only pay dividends but also raise them year after year have been shown to perform better overall for investor returns.
As part of my due diligence, I closely monitor all companies that raise dividends (or cut them), and this article shares the dividend amount changes announced by companies.
Note that only companies with a market cap of $2B+ are included, as the list of small/micro cap companies is too long to include here.
August was another great month for dividend raises. Dividend raises were noted from companies such as: Aqua America (WTR), Main Street Capital (MAIN), Spectra Energy (SEP), Kraft Heinz Co. (KHC), Illinois Tool Works (ITW), Dover Corp. (DOV), Delta Air Lines (DAL), Cheesecake Factory (CAKE), Expedia Inc. (EXPE), Royal Bank of Canada (RY), Canadian Imperial Bank of Commerce (CM), Bank of Nova Scotia (BNS), Bank of America (BAC), Wheaton Precious Metals (WPM), Harris Corp. (HRS), Altria Group (MO), and many more.
Images used in this article are from Simply Wall St., a financial visualization tool that has a unique way of representing value, future performance, past performance, financial health and dividends - all in one single image called Snowflake.
The following lists the highest raises and cuts from the month of August 2017.
The Dividend Raises
Oaktree Capital Group LLC (OAK)
Oaktree Capital Group LLC (Oaktree) is an investment manager specializing in alternative investments. Oaktree manages investments in a range of strategies within approximately six asset classes, which include corporate debt, convertible securities, distressed debt, control investing, real estate and listed equities. The company is headed by none other than the legendary investor Howard Marks.
The company announced that the quarterly dividends will increase from $0.71 to $1.31.
Dividend Raise: 84.5%. Forward yield is 11.68%.
OAK has a DIVCON score of 1.
Bank of America Corp. (BAC)
Bank of America Corporation is a bank holding company and a financial holding company. The bank provides services through four business segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets.
The company announced raising its quarterly dividend from $0.075 to $0.12.
Dividend Raise: 60%. Forward yield is 2.10%.
BAC has a DIVCON score of 4.
Forest City Realty Trust Inc. (FCE.A)
Forest City Realty Trust Inc. is engaged in operation, development, management and acquisition of office, retail and apartment real estate and land throughout the United States.
Forest City announced increasing its quarterly dividend from $0.09 to $0.14.
Dividend Raise: 55.5%. Forward yield is 2.18%.
Forest City has a DIVCON score of 2.
Delta Air Lines Inc. (DAL)
Delta Air Lines Inc. provides scheduled air transportation for passengers and cargo throughout the United States and across the world.
Delta Air Lines announced that the quarterly dividend will be raised from $0.2025 to $0.305.
Dividend Raise: 50.62%. Forward yield is 2.57%.
Delta Air Lines has a DIVCON score of 4.
The Dividend Cuts
As much as we like to see higher profits from our investments, it is also important to keep an eye on the dividend cuts. Keeping an eye on the cuts gives us a window to view the corporate world and spot overall trends.
Teva Pharmaceutical Industries Ltd. (TEVA)
Teva Pharmaceutical Industries Limited is a pharmaceutical company. The company is engaged in developing, producing and marketing generic medicines and a portfolio of specialty medicines. The company operates through two segments: Generic medicines and Specialty medicines.
The company's quarterly dividend is reduced from $0.34 to $0.085.
Dividend Cut: 75%. Forward yield is 2.19%.
Mattel Inc. (MAT)
Mattel Inc. manufactures and markets a range of toy products around the world. The company's segments are North America, International, and American Girl.
The company announced a quarterly dividend reduction from $0.38 to $0.15.
Dividend Cut: 60.5%. Forward yield is 3.93%.
Mattel has a DIVCON score of 1.
August marked another great month for dividend growth investors. Many large cap companies sending plenty of good news to investors and shareholders while a few dividend cut were noted for the month. Investors should do their own due diligence before investing in any of the companies mentioned. Did you get any raises from the stocks mentioned?
Disclosure: I am/we are long WPM.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.