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Defense Companies General Dynamics And Raytheon Expected To Announce Dividend Increases In March

Harvesting Dividends profile picture
Harvesting Dividends


  • Four companies, including Analog Devices, TJX Companies, and Sherwin-Williams, announced 10%+ increases in the latter half of February.
  • March will be a quiet month for dividend growth stocks with only a few companies announcing annual increases.
  • Among them will be two aerospace and defense companies, along with home goods company Williams-Sonoma.

Those of you who follow this series of articles know that I track the dividend increases of a variety of long-term dividend growth companies. Back in the middle of February, I provided predictions for 14 long-term dividend growth companies that have historically announced annual payout increases in the second half of the month.

In addition to the companies that I provided predictions for, there were other companies that announced dividend increases in the second half of February:

- Drug manufacturer Perrigo (PRGO) announced its 17th year of dividend growth, increasing its annual payout by 7% to $0.90. Perrigo now sports a forward yield of 1.8%.

- Xcel Energy (XEL) announced a 6% increase to $1.72 and now has a forward yield of 2.8%. The utility has grown dividends for 16 years.

- Also extending its streak to 16 years was Waste Management (WM). The company's 6% increase to $2.18 gives it a forward yield of 2.0%.

- Healthcare REIT National Health Investors (NHI) announced a 5% increase to $4.41. National Health extended its dividend growth history to 17 years and now has a forward yield of 5.4%.

There were many other companies that announced dividend increases during the latter half of February. Seeking Alpha author FerdiS provides a rundown in his articles.

Before I provide my predictions for March, we'll take a look at how well I did with my predictions from the second half of February (you can see the original article here):

(All yields are based on stock prices at the market close on Friday, February 28th.)

Results for the 14 Dividend Increase Predictions from the Second Half of February

Analog Devices (ADI)

Prediction: 7.4 - 10.2% increase to $2.32 - $2.38

Actual: 14.8% increase to $2.48

Forward yield: 2.27%

The chip designer and manufacturer beat my expectations

This article was written by

Harvesting Dividends profile picture
I'm an individual investor looking to grow my wealth over the long term. I've tried many different styles of investing over the last 25 years and have found that buying dividend growth stocks and reinvesting the dividends is one of the easiest ways to grow wealth over the long term. Over the years, I've owned stocks, options, ETFs, treasury notes, and mutual funds. I operate a blog, HarvestingDividends.com, that provides information on the S&P Dividend Aristocrats and other dividend growth stocks.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in ANY OF THESE STOCKS over the next 72 hours. 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.

I hold no positions in the stocks mentioned in this article, but I may take a position in any of them in the near future. Also, my parents bought shares in Walmart nearly 40 years ago and have been collecting dividends ever since.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (6)

Balthazar-B profile picture
@Harvesting Dividends, since $UTX declined to increase its dividend with the February announcement, as would have been expected otherwise, it would not be surprising if $RTN does not announce an increase, and instead for the three new companies to announce their starting dividends at the same time, just prior to new stock distributions.
Harvesting Dividends profile picture
Interesting theory. I hope that the combined company keeps the dividend streak going. $RTN usually announces at the end of March; it'll be interesting to see what they do.

Thanks for the comment!

Balthazar-B profile picture
FWIW, my guess. $RTN annual dividend of $3.77 will be added to the annual $UTX dividend of $2.94, and the total of $6.71 will be divvied among the new companies in as-yet-unknown proportions (probably influenced strongly by target payout ratios for each company). And the higher yields may be tilted towards Otis and Carrier so as to discourage investors dumping those shares and buy UTC/RTX with the proceeds. Hard to predict whether the aggregate of the entities will get a dividend increase or not or when.

While in theory the $UTX breakup is prior to and separate from the $RTN merger, my hunch is that in the end, the dividends will all magically add up as per the above guess.
xKaotic profile picture
NHI and ESS are two of the most under rated and under mentioned REITs out there. Hope it stays that way. Nice increases coming from many of the insurers as well.
GD Thursday, above 10%. I Hope!
GD is very undervalued, and at that dividend I am seriously considering overallocating if we see some market consolidation at these levels.
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