6 Dividend Increases Expected In December 2021

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Dividend Diplomats
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Summary

  • Dividends are the foundation of our goal to reach financial freedom. We continuously invest in dividend growth stocks to grow our passive income.
  • If the goal is to produce a passive income stream that will one day cover our expenses, making sure that income stream grows is critical.
  • The goal is to invest for the long term and buy companies that have demonstrated their ability to grow earnings, and its dividend, in good times and bad.

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The holiday season is upon us. Exit Thanksgiving and enter Hanukkah and Christmas! 2021 has been an exciting year for dividend growth investors. Companies continue to announce strong dividend increases and show why dividends are back in 2021. We are obsessed with dividend increases. That is why each month, we look ahead and write about the companies that are set to announce dividend increases in the coming months. Here is the latest installment of the expected dividend increases article! We feature 6 expected dividend increases in December 2021.

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!

If the goal is to produce a passive income stream that will one day cover our expenses, making sure that income stream grows is critical. Without growth, your dividend income stream will lose purchasing power to inflation. Inflation is typically between 2%-3% annually; although, it has been higher the last few months (4.2% in April and over 3% in May). Therefore, if you cannot achieve average dividend growth of at least that percentage, your income stream will be able to cover less, and less, over time.

That is why dividend growth is a major deciding factor in all of our stock purchase decisions. It is the 3rd 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 a company’s five-year average dividend growth rate!

Actual Dividend Increases in November 2021

Before we look ahead to December, let’s take a look at some of the dividend increases announced in the month of November. Hopefully you were fortunate enough to own one (or several) of the following dividend growth stocks that we featured in our article last month!

  • Hormel (HRL) – 6.1% dividend increase
  • Nike (NKE) – 10.9% dividend increase
  • McCormick & Co. (MKC) – 8.8% dividend increase
  • Lancaster Colony (LANC) – 6.7% dividend increase
  • Emerson Electric (EMR) – 2% dividend increase

In addition to the featured stocks, it is also worth noting that Mastercard (MA) announced a 11.4% dividend increase on the last day of the month (instead of announcing in December) and Canadian Banks delivered shareholders some incredible news. Each of the Big 6 Canadian Banks announced 10%+ dividend increases at the end of November (and beginning of December). That’s what dividend investing is all about. A major congrats if you own a Canadian Bank and received a huge dividend increase.

Dividend Increases Expected in December 2022

Now, with November behind us. Let's look ahead to the 6 expected dividend increases in 2021. Are you as excited as we are to see your dividend income grow?

Company #1: Abbott Laboratories (ABT) – Let’s start this party off in style. Abbott spun off AbbVie (ABBV) several years ago (early 2010s). The former combined company was a Dividend Aristocrat and has a long-term dividend growth track record. Post spin-off, neither Abbott nor AbbVie have disappointed. Despite its low dividend yield, Abbott has a double-digit percent 5 year dividend growth rate. This was capped off with an insane 25% dividend increase last year. I’m sure the dividend growth investing community would love a repeat performance in December 2021.

ABT Dividend Increase last year – 25%

ABT Five-year average DGR – 11.8%

Expected timing of Dividend Increase Announcement – Middle of the month

Company #2: Pfizer (PFE) – This will be an exciting month for the pharmaceutical sector. The next 3 stocks on this list are all from the same sector. Pfizer will be fascinating. After its Viatris (VTRS) spin-off, Pfizer was set to lower the dividend payment to offset the loss of earnings and cash flow. Then... the opposite happened. Pfizer decided to maintain its dividend post spin-off! So us Pfizer shareholders received a secret dividend increase due to a lack of dividend reduction. Now, let's see what Pfizer can do a year post spin-off and with the additional revenue from the COVID vaccine and booster.

PFE Dividend Increase last year – 2.6%

PFE Five-year average DGR – 5.4%

Expected timing of Dividend Increase Announcement – Middle of the month

Company #3: Bristol Myers Squibb (BMY) – Bristol Myers Squibb quietly announced a high single digit percent dividend increase last year. The company’s year has been less than stellar. Over the last week, the company’s stock price is down nearly 8%. With a 3.5% dividend yield, Bristol Myers Squibb presents an interesting investment opportunity for those looking to exposure to the sector. It will be interesting to see if they announce another strong dividend increase, or if the increase reverts closer to the company’s five-year average dividend growth rate this December.

BMY Dividend Increase last year – 8.9%

BMY Five-year average DGR – 5.27%

Expected timing of Dividend Increase Announcement – Middle of the month

Company #4: Eli Lilly (LLY) – The last of the pharmaceutical companies featured in this article is Eli Lilly. Unlike, Bristol Myers Squibb, Eli Lilly’s stock price has been on an absolute tear in 2021. It is up over 66% the last 52 weeks. It will be fascinating to see if the company’s great results translate to a strong dividend increase. Last year’s 14.9% increase was pretty awesome, so I’m going on a limb and stating that there is a chance we see a 20% dividend increase. That’s my expectation, now let's see if the company delivers.

LLY Dividend Increase last year – 14.9%

LLY Five-year average DGR – 10.88%

Expected timing of Dividend Increase Announcement – Middle of the month

Company #5: Enbridge (ENB) – The Canadian All-Star is closing in on becoming a Dividend Aristocrat. ENB has increased its dividend for 19 consecutive years, and that streak should become 20 years this month. Enbridge is a very popular stock in the dividend growth investor community. I would imagine that there are going to be plenty of people that are monitoring this announcement closely. Can’t wait to see how many bloggers receive an increased dividend total on our Twitter feed. With a rebound in the price of crude, I would expect this year’s increase to be in line with the five-year average dividend growth rate.

ENB Dividend Increase last year – 3.1%

ENB Five-year average DGR – 9.58%

Expected timing of Dividend Increase Announcement – Beginning of the month

Company #6: Franklin Resources (BEN) – Last on this list, we are going to head over to the asset management and brokerage sector. Franklin Resources has a strong track record of increasing its dividend. The company has increased its dividend for 41 consecutive years. Benjamin Franklin’s dividend history is fun to look at. Every few years, the company announces a special dividend. The last special dividend was in 2018. I wonder if management will get an “itch” to not only reward shareholders with a regular dividend increase, but a special dividend as well.

BEN Dividend Increase last year – 3.7%

BEN Five-year average DGR – 9.24%

Expected timing of Dividend Increase Announcement – Middle of the month

Summary

Man oh man, dividend investing is great. Every month, we are surprised by what Mr. Market and these long-term, dividend growth stocks bring us. The goal is to invest for the long term and buy companies that have demonstrated their ability to grow earnings, and its dividend, in good times and bad. As we close out 2021, let's all remember the great progress we have made. Then, let's pivot towards 2022 and focus on doing whatever it takes to reach financial freedom. Remember….every dollar counts on your journey towards financial freedom.

How many dividend increases are you expecting in December? Did you receive any of the dividend increases listed in this article last month? Were there others that you expected this month or received last month that were not featured in this article?

Bert

Original Post

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

This article was written by

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14.65K Followers
Two guys who love Investing, Dividends, Frugality, Passive Income & attempting to Reinvest Our Dividends to one day achieve Financial Freedom! Follow us on your journey towards a work-free life! http://www.dividenddiplomats.com
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