Tuesday, October 18, 2016

Visa dividend hike 18% !

Visa today announced a hike of their quarterly dividend payable in December from 14 cents to 16.5 cents. That is a 17.9% hike. Earlier this year I predicted a 15% hike so this increase is very welcomed.

Visa is my 4th largest position right now. Although it has a low yield I am betting on the super long term. Over time I think their yield % will grow and their dividend increase will be rapid until their business becomes a slow grower like a old blue chip. By then my position in V should have nicely grown to keep up with the huge dividend hikes.

Mastercard has also done incredibly well this year. They have boosted their dividend paid in February  of this year to 19 cents from the previous 16 cents. This is 18.8%, very similar to Visa.

This year the largest dividend hikes are from Reynoilds 28% (large increase due to their merger with Lorillard), TJX 24%, Mastercard 19%, and Visa 18% (comparing new quarter payout vs previous quarter payout ).


Right now my portfolio averages 9.26% dividend hike for 2016 and an average yield of 2.71% for an average dividend income increase for this year of 12% (I reinvest all my dividends). This 12% increase in income assumes I do not contribute any of my own money further into investments. My income is growing at a much faster rate due to my periodic contributions.

I am still waiting for Starbucks and Becton Dickinson to announce their hikes this year. I predict Starbucks at 15% and BDX at 10%.

Below I chart my dividend increase table for all my current positions. None of my positions decreased their dividend this year.

Company Ticker Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Raise 2016 yr, Comments
Reynolds American Inc RAI 0.3600 0.4200 0.4200 0.4600 27.78% raised twice
TJX Companies Inc TJX 0.2100 0.2600 0.2600 23.81%
Mastercard Inc MA 0.1900 0.1900 0.1900 18.75%
Visa Inc V 0.1400 0.1400 0.1400 0.1650 17.86%
Home Depot Inc HD 0.6900 0.6900 0.6900 16.95% from .59
Hormel Foods Corporation  HRL 0.2900 0.1450 0.1450 16.00% split, raise from .25
Starbucks Corporation SBUX 0.2000 0.2000 0.2000 15.00% estimate until announced
Ross Stores Inc ROST 0.1350 0.1350 0.1350 14.89%
Nike Inc NKE 0.3200 0.1600 0.1600 0.1600 14.29% split, raise from .28
Medtronic, Inc. MDT 0.3800 0.3800 0.4300 0.4300 13.16%
NextEra Energy Inc NEE 0.8700 0.8700 0.8700 12.99%
The J. M. Smucker Company SJM 0.6700 0.6700 0.7500 11.94%
Stryker Corporation SYK 0.3800 0.3800 0.3800 0.3800 10.14% from .345
Becton Dickinson and Co BDX 0.6600 0.6600 0.6600 10.00% estimate until announced
General Mills, Inc. GIS 0.4400 0.4600 0.4800 9.09% raised 2x this yr!
C R Bard Inc BCR 0.2400 0.2400 0.2600 8.33% usuall pay 2/5/8/11
Abbott Laboratories ABT 0.2600 0.2600 0.2600 8.33%
3M Co MMM 1.1100 1.1100 1.1100 8.29%
WEC Energy Group, Inc WEC 0.4950 0.4950 0.4950 8.20% Was .4575 last yr
Automatic Data Proc, Inc ADP 0.5300 0.5300 0.5300 0.5300 8.16% from .49
Dominion Resources, Inc D 0.7000 0.7000 0.7000 8.10%
Altria Group Inc MO 0.5650 0.5650 0.5650 0.6100 7.96%
McCormick & Company MKC 0.4300 0.4300 0.4300 0.4300 7.50%
Aqua America, Inc WTR 0.1780 0.1780 0.1913 7.47%
PepsiCo PEP 0.7025 0.7025 0.7525 0.7525 7.12%
Johnson & Johnson JNJ 0.7500 0.8000 0.8000 6.67%
Xcel Energy Inc XEL 0.3200 0.3400 0.3400 0.3400 6.25%
Air Products & Chemicals, Inc APD 0.8100 0.8600 0.8600 6.17%
The Coca-Cola Co KO 0.3500 0.3500 0.3500 6.06%
Church & Dwight CHD 0.3600 0.3600 0.3600 5.88%
McDonald's Corporation MCD 0.8900 0.8900 0.8900 0.9400 5.62%
Realty Income Corp O 0.1910 0.1985 0.1985 0.1990 0.1990 0.1990 0.1995 0.1995 0.2015 5.00% y/y
Kimberly-Clark KMB 0.8800 0.9200 0.9200 0.9200 4.54%
Kraft Heinz Co KHC 0.5750 0.5750 0.5750 0.6000 4.35%
Clorox Co CLX 0.7700 0.7700 0.8000 3.90%
Southern Co SO 0.5425 0.5600 0.5600 3.23%
Colgate-Palmolive Co CL 0.3800 0.3900 0.3900 2.63%
Verizon Communications Inc VZ 0.5650 0.5650 0.5650 0.5775 2.21%
AT&T Inc T 0.4800 0.4800 0.4800 2.13%
Philip Morris International Inc PM 1.0200 1.0200 1.0200 1.0400 1.96%
Procter & Gamble Co PG 0.6629 0.6695 0.6695 1.00%

5 comments:

  1. Loved seeing that hike from V. Like you I've got SBUX and BDX in my portfolio and fully expect 10%+ raises from both. Just curious if your average dividend raise is a simple average or a weighted one. A weighted one gives a better picture of what your income actually increased. Anyways all the best and it looks like you've had a fantastic year thus far.

    ReplyDelete
    Replies
    1. The number I gave above was the simple average. So you are right I should take a weighted one.

      Here's what I get with the weighted dividend increase since some of my positions are super large.

      Overall Portfolio Dividend Increase: 9.61%
      Overall Portfolio Dividend Yield: 2.73%

      9.61 + 2.73 = 12.34%

      It's actually quite close to the simple average method.

      Delete
    2. That's awesome that the weighted average is even higher than the simple average. And a 9% growth rate is awesome. Keep up the good work.

      Delete
  2. Young Div -

    Loved seeing the news from Visa, such a big spike and was bigger than last year, so that is always a GREAT sign. Congrats and pumped for the next year's div increase already haha.

    -Lanny

    ReplyDelete
  3. Hello

    TXN has recently raised its quarterly dividend by 32% and its forward yield today is 2.81%. My YOC is 4.5%. Don't you think TXN is better for V?

    ReplyDelete