Latest Dividend Increases December 2018

Dividend increases are a wonderful thing and the main drive why we do dividend investing. The secret is to find the right balance of high yield stocks like AT&T (T) with a rather slow dividend increase per year and lower yield stocks like Cisco Systems (CSCO), which have a yearly increase rate of around 10%.

This year was kind of special when it came to dividend increases. On the one hand I saw huge increases from Altria Group (MO) or AbbVie (ABBV), on the other hand I also saw no dividend increases from General Mills (GIS) or Greene King. The good thing is, that I did not experienced any dividend cut this year. As I mentioned in my previous post, in the future I will look more into stocks with a higher increase potential, which of course do not have such a high yield.

So nevertheless the year ended with two expected dividend increases, which were rather small.

AT&T (T)

AT&T increased their dividend the 34th year in a row, from an yearly dividend of 2.00 USD to 2.04 USD. This is the typical increase of AT&T and I was not expecting more. Actually I am quite happy, that the increase was only 4 cent as I think they really should concentrate more on reducing their debt level.

With that increase T offers now an outstanding yield of 7.81%, which is really great for a company with such a long strike of dividend increases. In total that increase adds 3.49 EUR before tax to my annual dividend income.

Pfizer (PFE)

The second company was Pfizer, also a company with a long dividend history. Unfortunately they cut their dividend 8 years ago, but have increased it since then every year. This years’ increase was 5.88% to now an annual dividend of 1.44 USD. It seems that their dividend increase policy sticks to the plan of increasing the dividend by 8 cents per year.

PFE now offers a yield of 3.43%, which is not so bad for the health sector. In total that increase adds 2.94 EUR before tax to my annual dividend income.

In total the increases do not have a huge impact on my annual dividend income, but I was not expecting it either and honestly an increase is better than now increase.

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Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in ...

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