Mostly Modest Dividend Increases To Continue In October, But Cintas And Prosperity Bank Will Lead The Pack

Summary

• September's dividend increases were mostly as I expected – in the low to mid single digits.
• Lockheed and Microsoft were the leaders, with increases just shy of 10%.
• October brings more of the same, but with potential outsized boosts from Cintas and Prosperity Bank.

This is the latest in my series of articles where I provide predictions of annual dividend increases for a variety of long-term dividend growth companies. Back at the end of August, I provided predictions for 9 dividend growth companies that have historically announced annual payout increases in September. Here, at the beginning of October, I provide my predictions for another 11 companies that historically have increased their dividends over the course of the month.

Before I offer the predictions for October's stocks, here are how my predictions from September came out (you can see the original article with my predictions here):

(All yields are based on stock prices at the market close on Friday, October 2nd.)

Results for the Dividend Increase Predictions from September

BancFirst Corporation (BANF)

Prediction: 4.7 - 7.8% increase to $1.34 - $1.38

Actual: 6.3% increase to $1.36

Forward yield: 3.22%

With the early September announcement, the Oklahoma-based bank holding company extended its dividend growth streak to 23 years.

Brady Corporation (BRC)

Prediction: 0 - 2.3% increase to $0.87 - $0.89

Actual: 1.1% increase to $0.88

Forward yield: 2.11%

Packaging company Brady Corporation continued its streak of small dividend increases into its 35th year of dividend growth.

Honeywell (HON)

Prediction: 0 - 3.3% increase to $3.60 - $3.72

Actual: 3.3% increase to $3.72

Forward yield: 2.25%

The diversified industrial manufacturer's 10th year of dividend growth was impacted by hits to sales and earnings in the first half.

Lockheed Martin Corporation (LMT)

Prediction: 8.3 - 10.4% increase to $10.40 - $10.60

Actual: 8.3% increase to $10.40

Forward yield: 2.73%

The aerospace and defense behemoth's boost in its 18th year of dividend growth was about half its long-term average, but it's a welcome increase this year.

McDonald's (MCD)

Prediction: 0 - 2.0% increase to $5.00 - $5.10

Actual: Announcement deferred

Analyst’s Disclosure:I am/we are long HON, LECO. 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 may take a position in any of the stocks mentioned in this article in the near future. Also, I owned RPM about 20 years ago and I'm still kicking myself for selling my position.