5 Dividend Increases Expected In October 2020

Another month is in the books. We are now in the final quarter of 2020, the craziest investing year of my career! Luckily, the third quarter was filled with plenty of dividend increases.  For those of you that are new followers, each month we summarize the dividend increases from the previous month and predict the ones set to be announced in the next month. Now, sit down, grad a cup of coffee, and read about the dividend increases expected in October 2020.

Dividend News and Dividend Increases in September 2020

Before looking ahead to the upcoming dividend increases, I like to discuss the actual increases from the previous month. September was an active month for dividend investors. In fact, there was a lot of great news!

To have some fun, I wanted to change the format of this section from previous monthly articles. Rather than simply list each dividend increase, I will split the dividend increases into different, self-identified categories.  The categories are:

  1. Featured Dividend Increases – This section will summarize the increases for some of the companies listed in last month’s article
  2. Surprise Dividend Increases – This section will cover dividend increases that came out of left field!
  3. The Suprise “No Dividend Increase Announcement” – This section will feature any companies that did not announce a dividend increase as expected
  4. The Best of the Rest – This section will briefly list any remaining dividend increases that have not been covered.

Featured Dividend Increases

In last month’s article, we featured 6 dividend increases expected in September. With the quality of names expected to announce, I was not expecting too many negative headlines from the group. The majority of the companies delivered dividend increases in line with expectations. Let’s kick this party off.

Lockheed Martin (LMT– Lockheed Martin is a company that has a stock price that always seems to increase. The company dominates the aerospace and defense sector. With our growing military budget, Lockheed has a consistent stream of revenue and earnings. LMT’s earnings growth over the last decade has been impressive. The earnings growth has translated to dividend investors as well. The company’s 5 year average dividend growth rate is right around 10%.

So what did Lockheed do in September? You bet they delivered a dividend increase to investors. Lockheed increased their quarterly dividend $.20 per share, to $2.60 per share from $2.40 per share. That was an 8.33% dividend increase. The dividend increase was slightly below their average; however, in my mind, it is right in line with their historical performance. Lockheed has now increased their dividend for 18 consecutive years. The company is closing in on becoming a Dividend Aristocrat (25+ years of dividend increases).

Microsoft (MSFT– Microsoft has had an eventful 2020.  The company’s stock price has….EXPLODED. Further, August and September were eventful due to the company’s pursuit of TikTok’s U.S. operations. Ultimately, the company lost the bidding war  to Oracle. While I’m not exactly sure how Oracle and TikTok will fit (I don’t know if Oracle does either), there is defitely value in the company’s immense platform and reach. Despite the loss, I am sure Microsoft will be just fine. In fact, they are on to their next project.

Shortly after the TikTok bid was rejected, Microsoft announced a 9.8% dividend increase. Just like Lockheed, the dividend increase in line with their average. Microsoft’s 5 year average dividend increase is 10.5%. Consistency is key for this softweare company!

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Disclaimer: I do not recommend any decision to the reader or any user, please consult your own research. Thank you.

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