The second half of 2023 has officially begun. June ended with a bank's worth of gains, at least from a dividend increase perspective. Now, it is time to make sure July delivers, too. In this article, we will look ahead and discuss the 7 expected dividend increases in July 2023.

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. In 2023, with high inflation, bank runs, and other major events, 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 3rd 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.

Actual Dividend Increases in June 2023

Before jumping ahead to July, let’s summarize the 4 dividend increases we expected to see in June. Did these companies deliver on expectations?

1. Kroger (KR): 11.5% dividend increase
2. Target (TGT): 1.9% dividend increase
3. Caterpillar (CAT): 8.3% dividend increase
4. UnitedHealth Group (UNH): 13.9% dividend increase

The fun didn’t just stop with the increases listed above. We also posted a video covering the 7 dividend increases that were featured through the month. The biggest surprise was Shell’s 15% dividend increase. The oil stock has continued to rebound after its dividend cut at the onset of the pandemic.

Further, since it was the last month of the quarter, we were able to review the dividend increases from two of our favorite dividend focused funds. VYM announced a 3.4% dividend increase compared to Q2 2023 while SCHD’s dividend actually decreased 6% compared to Q2 2022.

Lastly, Let’s not forget about what happened on the last Friday of June. After the banks released the results of their stress tests, some of the largest banks announced solid dividend increases. J.P Morgan (5%), Citi (4%), Wells Fargo (16.7%), and others spiced up their dividends. It was great for bank investors to receive positive news to end a tough quarter.

Now that the dust has settled, let's review some of the BIG BANK dividend increases announced over the last few hours:

1.) $JPM: 5.0%
2.) $C: 3.9%
3.) $WFC: 16.7%
4.) $MS: 9.7%
5.) $GS: 10.0%
6.) $STT 9.5%

LIKE THIS TWEET if you own one of the banks above!

— Dividend Diplomats (@DvdndDiplomats) June 30, 2023

Expected Dividend Increases in July 2023

Now, on to the fun part. Let’s look ahead to July. The following dividend stocks are expected to announce dividend increases in July! Let us know how many you own. Dividend Yields are as of 6/30/2023.

Dividend Stock #1: Stanley, Black and Decker (SWK)

We are excited for this dividend increase. Over the last year, my wife has amassed a position of 41.3 shares. Any kind of dividend increase is going to have a material impact on our dividend income.

SWK’s 2022 dividend increase was pathetic due to headwinds from a slowing economy. Now that SWK’s stock price is rebounding and back in the $90s per share area, will the company reward shareholders with a strong dividend increase? Or will they announce another prudent, small increase? I’m definitely pulling for the former.

• Dividend Yield: 3.41%
• Consecutive Dividend Increases: 54 Years
• 2022 Dividend Increase: 1.2%
• Five-Year Average Dividend Growth Rate: 4.89%
• Expected Timing of Dividend Announcement: End of Month

Dividend Stock #2: Cummins (CMI)

Next up on the list is Cummins. I have a very small position in Cummins, while Lanny has a much large stake in the company. This stock has been on a tear over the last few years.

I would see the stock as a buy when CMI’s dividend yield is over 3%. Now, we have a long way to go before the company enters this buy zone once again. Cummins’ dividend growth has been consistent lately. Their dividend increase is typically high, usually a single digit. This year, I’m expecting to see the same once again.

• Dividend Yield: 2.56%
• Consecutive Dividend Increases: 17 Years
• 2022 Dividend Increase: 8.2%
• Five-Year Average Dividend Growth Rate: 7.7%
• Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #3: J.M Smuckers (SJM)

It tastes so good, it has to be Smuckers. Despite a small sale in my portfolio (2 shares last month), we still hold a solid Smuckers position in my wife’s portfolio. Thus, we are set to benefit from a dividend increase.

Food stocks are interesting and are currently in a weird situation with inflation and potential changes to consumer demand. Therefore, I’m tampering expectations for the current dividend increase, and I would expect a low single digit dividend increase.

• Dividend Yield: 2.76%
• Consecutive Dividend Increases: 19 Years
• 2022 Dividend Increase: 3%
• Five-Year Average Dividend Growth Rate: 5.51%
• Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #4: The Hershey Company (HSY)

This is the one stock I’ve always wanted to own but have never found the right time to buy. Hershey's has one of the most iconic brands, and the company is on the way to becoming a Dividend Aristocrat. The company will take one more step here in July when they announce a dividend increase. I’m expecting a dividend increase in line with the company’s five-year average dividend growth rate.

• Dividend Yield: 1.66%
• Consecutive Dividend Increases: 13 Years
• 2022 Dividend Increase: 14.9%
• Five-Year Average Dividend Growth Rate: 9.57%
• Expected Timing of Dividend Announcement: End of Month

Dividend Stock #5: Walgreens Boots Alliance (WBA)

I was on the fence about including Walgreens. This Dividend Aristocrat is really struggling right now. Last week, Walgreens announced terrible guidance and major cost cutting initiatives. Now, Walgreens is set to close 450 stores in an effort to reduce costs.

I doubt the company announces anything larger than a .5% dividend increase this month (like last year). Transparently, I wouldn’t be shocked if they announce a dividend cut instead of dividend increase this month. Sadly, since we are shareholders, we will be watching this dividend increase closely.

• Dividend Yield: 6.74%
• Consecutive Dividend Increases: 30 Years
• 2022 Dividend Increase: .5%
• Five-Year Average Dividend Growth Rate: 3.74%
• Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #6: Cintas (CTAS)

This corporate uniform and supply company appears set to announce a dividend increase in July. I’m not overly familiar with the stock. Despite a 20% average dividend growth rate, the company has remained off my radar due to its low dividend yield and high valuation. I’m hoping Cintas shocks us all with another 20% dividend increase in July.

• Dividend Yield: .93%
• Consecutive Dividend Increases: 11 Years
• 2022 Dividend Increase: 21%
• Five-Year Average Dividend Growth Rate: 23%
• Expected Timing of Dividend Announcement: End of Month

Dividend Stock #7: Mondelez (MDLZ)

Last, but definitely not least, we are heading back to the food and snack sector. Mondelez has some of the most iconic international brands out there. Plus, the company has a pretty tasty dividend growth rate. This one will be interesting. It may be hard to announce another double-digit dividend increase in this economic environment. However, I’m going to go out on a limb and say the company can do it.

• Dividend Yield: 2.11%
• Consecutive Dividend Increases: 9 Years
• 2022 Dividend Increase: 10%
• Five-Year Average Dividend Growth Rate: 11.84%
• Expected Timing of Dividend Announcement: End of Month

Summary

There we have it, 7 dividend increases expected in July 2023 with one dividend king and other great dividend growth stocks. The one I am looking the forward to the most is Stanley, Black and Decker since we have amassed such a large position in the company. Still, though, I’m always happy to see every other company grow their income. Why? Because we are all on this journey to financial freedom together.

So, how many of the 7 dividend stocks do you own on this list? What other dividend increases in July are you expecting?

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