8 Dividend Increases Expected In December 2020

We are cruising towards the end of 2020. What a year it has been. The stock market continues to climb towards record highs, with the prospect of a vaccine and more stimulus around the corner. The positive news, along with another strong earnings season, has had a direct impact on dividend payouts and more importantly, dividend increases. That is why we love dividend increases and spend so much time reviewing them!

With a new month coming, you know what that means? The next installment in our monthly dividend income summary series. Each month, we predict the expected dividend increases and review last month’s actual results. November was an INSANE month for dividend increases. Hopefully, December will be even crazier!

Dividend News and Dividend Increases in November 2020

Before looking ahead to the upcoming dividend increases, I like to discuss the actual dividend increases from the previous month. I stated earlier that November was a crazy month for dividend investors. You are about to see why shortly.

In this section of the article, I will discuss dividend increases, and changes, from November. 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 Surprise “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.

Let’s dive in and review some dividend increases.

Featured Dividend Increases

TJ Maxx (TJX) – This could have been classified as a featured and surprise dividend increase!  TJ Maxx delivered some amazing news for dividend investors. At the onset of the pandemic, TJX suspended its dividend to preserve capital. The move was prudent at the time and one that most investors understood.  Management made several statements as well, citing their desire to reinstate the dividend as soon as possible.

The time to reinstate their dividend came in November.  TJ Maxx reinstated its dividend. However, the company did not stop there. To put the cherry on top, TJ Maxx announced a 13% dividend increase. Not only did the company reinstate its dividend; the company reinstated its dividend at a higher rate.  How freaking awesome is that!

TJ Maxx dividend Increase

Nike (NKE): The apparel giant with some of the most iconic shoes (Jordans) and athletes under its umbrella (LeBron), delivered a strong 12% dividend increase to investors. This dividend increase was hard to estimate entering the month. Why? Retail stores shut down due to the pandemic.  To counteract that point, people have been working out at home and were still requiring new shoes, equipment, and other items. I could have seen the dividend increase go both ways for Nike. Clearly, Nike was able to push through store closures and still announce a dividend increase in line with its five-year average!

McCormick (MKC): Last month, we talked about McCormick’s consistent dividend increase history. The company’s five-year average dividend growth rate was 9.2% entering the month and the company’s 2019 dividend increase was 8.8%. As dividend investors, we respect the consistency. Especially when the increase is close to double digits annually.  In November, you guessed it, MKC announced a strong dividend increase in line with its history. MKC increased its quaterly dividend by 9.7%.

Surprise Dividend Increases and Announcements

Costco (COST): Costco rocked the investing world in the middle of November. No, the company did not announce a dividend increase. Instead, Costco announced a $10 per share special dividend! That alone will result in a $4+ billion payout to shareholders.

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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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