7 Dividend Increases Expected In January 2022

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.
• Without growth, your dividend income stream will lose purchasing power to inflation.

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Ladies and gentleman, it is time to kick off 2022 in style! We have 7 dividend increases expected in January 2022. As passionate dividend growth investors, we are always monitoring the newswire for dividend increases. Each month, we summarize the dividend increases expected in the coming month. There are some heavyweights this month. So get ready, with your cup of coffee. It is time to discuss the 7 dividend increases expected in January 2022.

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, as we all know, it is very high currently. 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!

We cover dividend news extensively on our YouTube Channel. Each week, we discuss the major dividend increases from the week before. Heck, each month, we even bring this article to life and cover the major expected dividend increases of the coming month.

Actual Dividend Increases in January 2022

Before looking ahead to January, let’s take a look at some of the dividend increases in December. We always love seeing ours, and your, passive income grow. Hopefully you were fortunate enough to own one (or several) of the following dividend growth stocks that we featured in our article last month!

• Abbott Laboratories (ABT): 4.4% dividend increase, $5B share repurchase program
• Pfizer (PFE): 2.6% dividend increase
• Bristol Myers Squibb (BMY): 10.2% dividend increase, $15B share repurchase program
• Eli Lilly (LLY): 15.3% dividend increase
• Enbridge (ENB): 3% dividend increase
• Franklin Resources (BEN): 3.6% dividend increase

The biggest shock of the month, however, was not from one of the six companies list above that were featured in last month’s article. Instead, it came from CVS Pharmacy (CVS). CVS’s dividend growth is back baby! The company announced a huge 10% dividend increase. This is the first dividend increase since the company’s Aetna merger. After the merger, management stated they will maintain their dividend at its current level to focus on paying down debt. Now, with a better balance sheet, management is finally comfortable with its dividend. That means more dividend income and more cash in our pockets!

Dividend Increases Expected in January 2022

The dividend increases in December were wild. Plus, there were countless others that we didn’t get a chance to share above. 2021 was a wild year for dividend investing. Hopefully, 2022 will pick up right where we left off. Speaking of 2022, now let/s look ahead to the expected dividend increases in January 2022. We are about to feature 7, excellent dividend growth stocks that should grow their dividend payments.

Dividend Stock #1: Cincinnati Financial (CINF) – One of my favorite dividend stocks in my portfolio. We haven’t owned it for a while, actually. In fact, we initiated a position at the beginning of the pandemic. When the company’s stock price plummeted in April/May 2020, I jumped on the opportunity to add this Dividend King that typically trades at a high P/E Ratio. Since the purchase, the company’s stock price has climbed. Hopefully, the dividend increase resembles Aflac’s (AFL) double-digit percent dividend increase instead of following last year’s 5% increase. Let’s start this year off strong!

• Consecutive Dividend Increases: 60 years
• 2021 Dividend Increase: 5%
• 5-Yr Average Dividend Growth Rate: 6.56%
• Expected Timing of Dividend Announcement: End of the Month

Company #2: Kimberly-Clark (KMB) – A consumer staple giant on the verge of becoming a Dividend King. I do love consumer staple giants, as evidenced by our recent Unilever video and stock purchases that were made thereafter. It was actually surprising that Kimberly-Clark announced a 6.5% dividend increase, especially when so many other consumer staple stocks announced lower than average dividend increases. Think KMB can kick it up a notch and cross a 10% dividend increase this year?

• Consecutive Dividend Increases: 46 years
• 2021 Dividend Increase: 6.5%
• 5-Yr Average Dividend Growth Rate: 4.39%
• Expected Timing of Dividend Announcement: End of the Month

Company #3: Archer-Daniels-Midland (ADM) – For many years, ADM announced its dividend increase the first two weeks of February. Over the last two years, ADM has actually announced its dividend increase at the end of January. Let's see if they make it a three peat in 2022. ADM plays such a major role in our lives, whether we realize it or not. Their role in processing foods, oilseeds, wheat, corn, and other commodities cannot be underestimated. Their 2021 dividend increase was a disappointment; so it's time to over-correct in the other direction.

• Consecutive Dividend Increases: 46 years
• 2021 Dividend Increase: 2.8%
• 5-Yr Average Dividend Growth Rate: 4.29%
• Expected Timing of Dividend Announcement: End of the Month

Company #4: Air Products and Chemicals, Inc. (APD) – Wow, another Dividend Aristocrat. There are some big time dividend growth stocks set to increase its dividend this month. APD is a quiet Dividend Aristocrat. Since the business isn’t consumer facing, you don’t appreciate the company’s size and total revenue. The company’s dividend yield is nearly 2% at the moment. The 2% dividend yield with a double digit average dividend growth rate is exactly the combination we like to see. I don’t see any reason why APD won’t continue with another strong dividend increase in January.

• Consecutive Dividend Increases: 38 years
• 2021 Dividend Increase: 11.9%
• 5-Yr Average Dividend Growth Rate: 11.52%
• Expected Timing of Dividend Announcement: Middle of the Month

Company #5: Intel (INTC) – Intel. Ah, yes. Intel. The legacy technology stock that had a roller coaster 2021. The company’s stock price sank, presenting a great buying opportunity for my wife and I. Now, we both own pretty healthy positions in this tech stock that is investing heavily in operations to solve the supply chain issues hampering sales this year. You can bet that we are going to be keeping a close eye on this dividend stock’s dividend announcement. Because of the headwinds, I’m not expecting a dividend increase greater than the company’s five year average dividend growth rate. We shall see, and hopefully I’m surprised.

• Consecutive Dividend Increases: 6 years
• 2021 Dividend Increase: 5.3%
• 5-Yr Average Dividend Growth Rate: 6.01%
• Expected Timing of Dividend Announcement: End of the Month

Company #6: Comcast (CMCSA) – The telecommunications giant is set to announce its dividend increase in January. The company that has gone head to head with AT&T (T) over the years. Comcast is one of the largest cable, internet, and wireless communication providers. Don’t forget the company’s content portfolio, including NBC, Telemundo, Oxygen, Bravo, and Universal Studios. It is a company built for the streaming wars, although it’ll be interesting to see if they pivot in a similar manner as AT&T or if they will hold strong with this strategy.

• Consecutive Dividend Increases: 14 years
• 2021 Dividend Increase: 8.7%
• 5-Yr Average Dividend Growth Rate: 12.82%
• Expected Timing of Dividend Announcement: End of the Month

Company #7: Consolidated Edison (ED) – Last, but definitely not least... one of our top 5 foundation dividend stocks. We love this company and both have hefty positions in the utility giant. The company has a solid dividend yield and an average dividend growth rate. It is pretty much exactly what you would expect from a utility company. Consistent dividend growth coupled with operating in a sector you can’t live without. Sign me up!

• Consecutive Dividend Increases: 46 years
• 2021 Dividend Increase: 3.4%
• 5-Yr Average Dividend Growth Rate: 2.96%
• Expected Timing of Dividend Announcement: End of the Month

Summary – Expected Dividend Increases In January 2022

So there we have it, the 7 great dividend growth stocks expected to announce a dividend increase this coming month. What’s crazy is that this month features 4 Dividend Aristocrats and 1 Dividend King. There is some serious dividend royalty set to announce a dividend increase. Hopefully... you own one, or several, of the companies on this list. This month, I actually own 4: CINF, ADM, INTC, and ED. So you bet I’m freaking excited about the coming month!

How many dividend increases are you going to receive this month? How many stocks on this list do you own? Are you ready to crush it in 2022?

Bert

Original Post

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