Dividend Increases Expected In February 2021

2021 is off to a crazy start. As a dividend investor, I couldn’t be happier that companies continue their trend of strong dividend increases that started at the end of 2020. The dividend increase news took a back seat to WallStreetNews, however. All investors were fixated on the madness that was taking place with GameStop, Bed Bath & Beyond, and other stocks. Since I invest in dividend stocks, I was happily watching this action from the sideline and continuing to find undervalued dividend stocks to buy. Instead, I was spending my time researching dividend stocks and dividend increases!

Since there have been so many dividend increases this month, I must change the format of the article for this month. Otherwise, this article could be 10,000 words long. Instead, I will briefly summarize the dividend increases from January 2021 and discuss a few surprises and observations. Then, we will jump right into February 2021. Let’s just say the first week of February was CRAZY and there have already been a TON of companies that increased its dividend.

Dividend News and Dividend Increases in January 2021

With the dividend increases coming in hot and heavy to start the year, I featured some of the significant dividend increases from the previous month. While I wish I could list out every dividend increase, the reality is, I can’t. However, if you ever want to keep up to date on more dividend increases, I strongly suggest that you stop by our YouTube Channel. Typically, every week, we produce a video summarizing the major dividend increases from the previous week.

Featured Dividend Increases in January 2021

The following companies featured last month increased its dividend in January 2021:

Company #1: Cincinnati Financial (CINF):  5% dividend increase

Company #2: Kimberly Clark (KMB): 6.5% dividend increase

Company #3: Archer Daniels Midland (ADM): 2.8% dividend increase

Company #4: Air Products and Chemicals, Inc (APD):  11.9% dividend increase

Company #5: Intel (INTC):  5.5% dividend increase

From the list above, only Archer Daniels Midland was a surprise. Why? Not because the company announced a large dividend increase. Rather, they were a surprise due to the timing of the dividend increase. Typically, ADM announces a dividend increase at the beginning of February. However, in 2020 and 2021, the company has announced a dividend increase in the last week of January. Is this the start of a new trend for ADM? Or has it simply been a fluke? We will have to wait until January 2022 to find out.

Companies that DID NOT Increase Its Dividend In January 2021

Sadly, not every dividend stock that I featured in last month’s article announced a dividend increase. In fact, two high profile companies did not increase their dividend.

Company #1: Chevron (CVX):  My expectations were low for Chevron. Chevron and Exxon are two of the major oil companies that did not cut its dividend in 2020 after the price of crude oil plummetted. Oil companies continue to struggle and try to find their way, despite a slight rebound in the price per barrel of oil. Therefore, it is not surprising that Chevron opted to maintain its dividend at its current level, rather than raise its dividend.

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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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