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 8 expected dividend increases in July 2024.
Why do we suspect these companies are going to announce a dividend increase in July? The dividend stocks featured in this article all have a history of announcing their annual dividend increases in July. 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 on your dividend income.
The same consistency applies for dividend increase announcements. For the most part, companies announce their annual dividend increases 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, have announced dividend increases in July in recent history. That is why we are so confident that each of the featured dividend stocks will once again increase its dividend in July.
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 its five-year average dividend growth rate.
Expected Dividend Increases in July 2024
Now, let’s look ahead to July 2024 and review the expected dividend increases in the upcoming month. We are expecting 8 dividend increases.
In this section, we will present two dividend yields: the current dividend yield as of 7/9/24 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: Stanley Black & Decker (SWK)
We are starting this list off with a Dividend King. Stanley Black and Decker has had a tough 2024, down 17.56%, due to weakening consumer demand. In reality, this continues the companies long decrease that started in 2023. Last year, the company announced a tiny 1.25% dividend increase, which was well below its average. With continued top line and bottom line pressure, I’m personally not expecting an increase above the company’s five-year average.
- Current Dividend Yield: 3.99% (as of 7/9/24)
- Forecasted Dividend Yield: 4.16%
- Consecutive Dividend Increases: 55+
- 2023 Dividend Increase: 1.25%
- 5-Yr Average Dividend Growth Rate: 4.18%
- Expected Timing of Dividend Announcement: End of Month
Dividend Stock #2: Cummins (CMI)
Cummins is up 12% year to date. This stock has been a remarkably consistent dividend grower. The stock’s five-year average dividend growth rate is 8%. Last year, the stock’s dividend increase was right in line with its average. Cummins is one of my favorite dividend stocks!
- Current Dividend Yield: 2.49% (as of 7/9/24)
- Forecasted Dividend Yield: 2.69%
- Consecutive Dividend Increases: 18+
- 2023 Dividend Increase: 7.01%
- 5-Yr Average Dividend Growth Rate: 8.08%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #3: J.M. Smuckers (SJM)
Smuckers is a company that I continue to watch closely in 2024. The stock is down over 13% this year. The decrease has caused the stock’s dividend yield to hover close to 4% over the last 3 months. This earnings release will provide shareholders like myself with a lot of great information to determine if it is worth buying more shares or not. Hopefully, within this earnings release, they provide us with a nice dividend increase as well!
- Current Dividend Yield: 3.86% (as of 7/9/24)
- Forecasted Dividend Yield: 4.03%
- Consecutive Dividend Increases: 23+
- 2023 Dividend Increase: 3.92%
- 5-Yr Average Dividend Growth Rate: 4.51%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #4: Hershey’s (HSY)
Hershey’s is one of the hottest stocks in the dividend community. The stock is down nearly $30 per share from its 2024 peak share price ($209.51 in May 2024). The company announced an unusually large dividend increase last year. In fact, the dividend increase was more than double its five-year average dividend growth rate. No wonder this stock, that sports a ~3% dividend yield and 12% average dividend growth rate, is so highly coveted by the dividend investing community!
- Current Dividend Yield: 2.97% (as of 7/9/24)
- Forecasted Dividend Yield: 3.33%
- Consecutive Dividend Increases: 14+
- 2023 Dividend Increase: 32.24%
- 5-Yr Average Dividend Growth Rate: 12.15%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #5: Cintas (CTAS)
Cintas is a stock that, transparently, is not on my dividend stock radar due to its low dividend yield and high valuation. The stock is up nearly 18% in 2024, continuing an insane five year run that has seen the stock price increase 198%. Strong earnings growth has allowed this low dividend yielding stock to announce massive dividend increases each year. We’re looking forward to seeing the percent increase this year!
- Current Dividend Yield: .76% (as of 7/9/24)
- Forecasted Dividend Yield: .92%
- Consecutive Dividend Increases: 35+
- 2023 Dividend Increase: 17.39%
- 5-Yr Average Dividend Growth Rate: 21.37%
- Expected Timing of Dividend Announcement: Middle of Month
Dividend Stock #6: Mondelez (MDLZ)
Mondelez is down 10% in 2024. This is yet another packaged food company that is facing major headwinds in 2024. Mondelez, like Cummins, has a very consistent dividend increase history. The 2023 dividend increase was in line with its five-year average dividend growth rate. The company sports a strong consumer brand portfolio, with big names such as Oreo, Ritz, and CLIF Bars. These are strong brands that can weather tough times. However, will the company still manage to maintain its strong dividend growth in this high inflationary environment? We’re looking forward to finding out.
- Current Dividend Yield: 2.57% (as of 7/9/24)
- Forecasted Dividend Yield: 2.84%
- Consecutive Dividend Increases: 10+
- 2023 Dividend Increase: 10.39%
- 5-Yr Average Dividend Growth Rate: 10.33%
- Expected Timing of Dividend Announcement: End of Month
Dividend Stock #7: Norfolk-Southern (NSC)
This is going to be the most fascinating dividend announcement to watch this month. Norfolk Southern did not increase its dividend last year as a result of the major issues resulting from tragic train derailments. However, the company still has a dividend increase streak since the 2023 annual dividend payout was higher than the 2022 annual dividend payout. Norfolk’s streak will be snapped if the company does not increase its dividend in July or October this year.
- Current Dividend Yield: 2.52% (as of 7/9/24)
- Forecasted Dividend Yield: 2.78%
- Consecutive Dividend Increases: 7+
- 2023 Dividend Increase: 0%
- 5-Yr Average Dividend Growth Rate: 10.22%
- Expected Timing of Dividend Announcement: End of Month
Dividend Stock #8: PPG Industries (PPG)
Last, but definitely not least, PPG Industries. The major paint distributor is down 16% in 2024. As a result, the stock’s dividend yield has eclipsed 2%. The Dividend King has a strong history of increasing its dividend modestly. Let’s see if the company can eclipse its five-year average dividend increase this year (unlike last year).
- Current Dividend Yield: 2.05% (as of 7/9/24)
- Forecasted Dividend Yield: 2.19%
- Consecutive Dividend Increases: 51+
- 2023 Dividend Increase: 4.84%
- 5-Yr Average Dividend Growth Rate: 6.65%
- Expected Timing of Dividend Announcement: Middle of Month
Summary
Here we are. 8 great dividend stocks are expected to announce a dividend increase in July. Of course, there will be other stocks that are expected to announce dividend increases that were not featured on this list. We can’t get to them all! If you know of a stock we left out, please share them in the comment section below.
From the list, I own 4 of the dividend stocks in my dividend stock portfolio: SWK, CMI, SJM and NSC. You better believe that we are going to be watching the news wire closely.
How many dividend stocks from this list do you own? Are you as excited about dividend increases this month as we are?
~The Dividend Diplomats
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