PM Images
We are always on the lookout for dividend increases! Whether it is on our website or social media platforms, we are always sharing dividend increase news. In this article, we are featuring 11 expected dividend increases in February 2024!
Why do we suspect these companies are going to pay a dividend in February? The 11 dividend stocks featured in this article all have a history of increasing its dividend in February. The funny thing about large, blue-chip dividend paying stocks is that they are generally pretty consistent with dividend announcements. Management teams prefer announcing and paying dividends around the same time every quarter. Plus, shareholders like us also enjoy the predictability and consistency of dividend payments. Especially once you retire and live off of your dividend income!
The same consistent applies for dividend increase announcements. For the most part, companies announce their annual dividend increase in the same month every year (Of course, there are always exceptions to the rule). Each of the featured dividend stocks, when reviewing their history, all have announced dividend increases in February in recent history. That is why we are so confident that each of the featured dividend stocks will once again increase its dividend in February.
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! In 2024, with high inflation, buying undervalued dividend stocks that increase your dividend is as crucial as ever.
That is why dividend growth is a major deciding factor in all of our stock purchase decisions. It is the third 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!
Expected Dividend Increases in February 2024
We have a ton of dividend increases to feature in this article. There are 11 expected dividend increases in February 2024. The list is filled with Dividend Kings, Dividend Aristocrats and many other great companies. Let’s stop wasting time and start reviewing the companies that are about to increase the income for us shareholders!
In this section, we will present two dividend yields. The current dividend yield as of 1/28/24 and the forecasted dividend yield. The forecasted dividend yield is the potential future dividend yield for the stock if management announces a dividend increase in line with their five-year average dividend growth rate.
Dividend Stock #1: Coca-Cola (KO)
We are starting this party out with an iconic brand. Warren Buffett’s iconic can of Diet Coke that is always pictured with him. Coca-Cola is a Dividend King and has increased its dividend for over 60 consecutive years. While the company has a long streak of increasing its dividend, the company’s dividend growth has been lackluster over the years. The primary factor has been slow revenue and earnings growth. However, we have seen an increase in revenue over the last year due to skyrocketing inflation and the cost of soda. The question is, will this translate to an above-average dividend increase?
- Current Dividend Yield: 3.10% (as of 1/28/24)
- Forecasted Dividend Yield: 3.20%
- Consecutive Dividend Increases: 61+
- 2023 Dividend Increase: 4.6%
- 5-Yr Average Dividend Growth Rate: 3.36%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #2: 3M Company (MMM)
The 3M Company has been a thorn in all dividend growth investors’ side. The company continues to face massive litigation costs and a massive settlement. The legal issues, combined with slowing sales growth, has led to terrible performance over the last few years. Not only has the stock price suffered, the dividend growth has suffered as well. 2023’s dividend increase was pathetic. It was only .67%.
- Current Dividend Yield: 6.25% (as of 1/28/24)
- Forecasted Dividend Yield: 6.37%
- Consecutive Dividend Increases: 65 Years
- 2023 Dividend Increase: .67%
- 5-Yr Average Dividend Growth Rate: 1.98%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #3: PepsiCo (PEP)
PepsiCo and Coca-Cola compete on the grocery store shelves, and they also compete with dividend increases. They both announce in February. PepsiCo always has an interesting dividend increase cadence. The company announces its dividend increase in February. However, the increase is not effective until their June dividend payment. PepsiCo announced a strong dividend increase in 2023. In fact, the dividend increase was above its five-year average growth rate.
- Current Dividend Yield: 3.01% (as of 1/28/24)
- Forecasted Dividend Yield: 3.21%
- Consecutive Dividend Increases: 51+ Years
- 2023 Dividend Increase: 9.1%
- 5-Yr Average Dividend Growth Rate: 6.63%
- Expected Timing of Dividend Announcement: Beginning of Month
Dividend Stock #4: Genuine Parts Company (GPC)
Genuine Parts Company is one of my favorite holdings. The Dividend King is a dominant player in the secondary auto industry. Unfortunately, as we all know, cars are expensive to own and maintain. Genuine Parts Company will always have a plethora of consumers that need to purchase their products or get their car maintained by an auto shop that purchases GPC’s product.
Genuine Parts Company is down 15% over the last 52 weeks. The company’s price-to-earnings ratio has fallen to ~15x. Not bad for the company.
- Current Dividend Yield: 2.66% (as of 1/28/24)
- Forecasted Dividend Yield: 2.81%
- Consecutive Dividend Increases: 67+ Years
- 2023 Dividend Increase: 6.1%
- 5-Yr Average Dividend Growth Rate: 5.7%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #5: T. Rowe Price (TROW)
T. Rowe Price is a Dividend Aristocrat that we purchased heavily in 2023 for my wife’s dividend stock portfolio. The company’s stock price spent a decent amount of 2023 below $100 per share (prior to the stock market run-up in Q4). This makes sense given the fact that T. Rowe makes money off of fees associated with the company’s Assets Under Management (AUM). If AUM decreases, less revenue is earned. I know that is overly simple; however, it is a quick way to understand why the stock price falls with the market.
The company’s 2023 was awful compared to the company’s recent average. Management announced a prudent 3.85% increase. This was much, much lower than the company’s five-year average growth rate of over 10%!
- Current Dividend Yield: 4.43% (as of 1/28/24)
- Forecasted Dividend Yield: 4.95%
- Consecutive Dividend Increases: 37+
- 2023 Dividend Increase: 3.85%
- 5-Yr Average Dividend Growth Rate: 11.75%
- Expected Timing of Dividend Announcement: Beginning of Month
Dividend Stock #6: Walmart (WMT)
This is our fifth Dividend King on this list. Walmart is the champion of everyday low prices. The shocking thing about Walmart is how much of the grocery market share the company owns. I’ve always associated Walmart with low prices on everything; however, ever since we signed up for Walmart+ a few years ago, it has demonstrated its ability to deliver low-cost groceries to our house. It was an eye-opening experience for me – one that I am happy I embarked on.
My experience doesn’t even account for the fact that Walmarts are everywhere, and often time the primary option for many rural communities. This has allowed the stock to continue to perform (+15% over the last 52 weeks) despite a heavy inflationary period.
The one knock against Walmart is its awful dividend growth. The company consistently increases its dividend $.01 per share per quarter.
- Current Dividend Yield: 1.39%
- Forecasted Dividend Yield: 1.42%
- Consecutive Dividend Increases: 50+ years
- 2023 Dividend Increase: 1.7%
- 5-Yr Average Dividend Growth Rate: 1.85%
- Expected Timing of Dividend Announcement: End of the month
Dividend Stock #7: United Parcel Services (UPS)
Lanny built his UPS position significantly in 2023 and is about to enjoy the fruits of his efforts when the company announces a dividend increase in 2024. UPS is down over 10% over the last 52 weeks, and its current dividend yield is above 4%. The company has faced increased costs from fuel, operations and personnel. In particular, UPS agreed to a hefty pay and benefits increase with the union. All major costs are surely going to impact UPS’ bottom line in 2024 and prevent the company from announcing a dividend increase in line with its average.
- Current Dividend Yield: 4.07% (as of 1/28/24)
- Forecasted Dividend Yield: 4.57%
- Consecutive Dividend Increases: 14+ years
- 2023 Dividend Increase: 6.6%
- 5-Yr Average Dividend Growth Rate: 12.23%
- Expected Timing of Dividend Announcement: Beginning of Month
Dividend Stock #8: Home Depot (HD)
Home Depot is my personal home improvement store of choice. There is nothing wrong with Lowe’s; however, for some reason, I always find myself looking at Home Depot first! Home Depot has showed strong growth over the last year despite headwinds in the market. Consumers continue to face pressure due to inflation. With less money to spend, more home improvement projects are deferred, as a consumer’s cash is directed towards the essentials. Despite all of this, the stock price is up nearly 13% over the last 52 weeks. Home Depot continues to show its resilience.
- Current Dividend Yield: 2.35% (as of 1/28/24)
- Forecasted Dividend Yield: 2.71%
- Consecutive Dividend Increases: 14+ years
- 2023 Dividend Increase: 10%
- 5-Yr Average Dividend Growth Rate: 15.20%
- Expected Timing of Dividend Announcement: End of Month
Dividend Stock #9: Allstate (ALL)
Allstate is not a stock in my portfolio. However, that doesn’t mean that the insurance giant is not a great undervalued dividend growth stock! Allstate is up 23% over the last year! The company is riding strong performance and lower-than-anticipated catastrophic losses. In 2023, Allstate announced a very conservative dividend increase that was less than their five-year average dividend growth rate.
- Current Dividend Yield: 2.25% (as of 1/28/24)
- Forecasted Dividend Yield: 2.57%
- Consecutive Dividend Increases: 13+ years
- 2023 Dividend Increase: 4.7%
- 5-Yr Average Dividend Growth Rate: 14.11%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #10: Cisco Corporation (CSCO)
Cisco has a crazy stock chart over the last 52 weeks. Despite only being up 8% in this time frame, the company’s stock price has been as high as $58.16 per share and as low as $45.56. Talk about a wide range! Cisco is a major, dominant player in cybersecurity and infrastructure. Cybersecurity continues to play a major role in our daily lives. Companies are fighting to use Cisco (or other firms) to fight off relentless cybersecurity attacks and keep you and your data safe. That is why we enjoy having Cisco in our portfolio. Transparently though, the company’s dividend growth has been lacking over the last half-decade. The 2023 increase was below its already low five-year average of 3.45%.
- Current Dividend Yield: 2.99% (as of 1/28/24)
- Forecasted Dividend Yield: 3.09%
- Consecutive Dividend Increases: 12+ years
- 2023 Dividend Increase: 2.65%
- 5-Yr Average Dividend Growth Rate: 3.45%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #11: Sherwin-Williams (SHW)
Ask how. Ask now. Ask Sherwin-Williams. The paint giant is on the verge of becoming a Dividend King. 2023 was an uncharacteristically low dividend increase for this company. In fact, the .83% increase was shockingly lower than their five-year average growth rate. Sherwin-Williams is up over 30% over the last 52 weeks.
- Current Dividend Yield: .80% (as of 1/28/24)
- Forecasted Dividend Yield: .93%
- Consecutive Dividend Increases: 45+ years
- 2023 Dividend Increase: .83%
- 5-Yr Average Dividend Growth Rate: 16.11%
- Expected Timing of Dividend Announcement: Middle of Month
Summary
There we have it. 11 expected dividend increases in February 2024. This list of companies features some high- quality companies. This is definitely one of the strongest months of dividend increases. Hopefully, these companies will set the tone for a strong 2024 and some nice, surprise dividend increases! From the list, I own 7 stocks: MMM, TROW, PEP, GPC, TROW, UPS, and CSCO. You bet I’m excited for this month and cannot wait to see how many announce an increase!
How many from this list do you own? What dividend increases are you expecting in February? Do you expect any surprise dividend increases?
