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.

Company #2: AT&T (T):  Now, this is the frustrating non-dividend increase. AT&T passed on announcing a dividend increase in December. The company stated that it would provide an update on the company’s capital allocation strategy at the end of January 2021. That is why I was expecting AT&T to announce a dividend increase. Maybe the company was waiting for its year-end results to announce something major to shareholders. At least, that was my thought.

Instead, another month went by without a dividend increase. AT&T still has time to maintain its title as a Dividend Aristocrat by announcing, and paying, a larger dividend at some point in 2021. However, time is ticking. Eventually, management will need to make a decision.

Dividend Increases Expected in February 2021

February 2021 has been an insane month already. Time has flown by and I am a few days late on writing this article, unfortunately. January was a spectacular month for dividend investors. Many great companies announced, as you saw above. February is also set to be another strong month for dividend investors. However, since I am a few days late, a few of the companies on this list have already announced their dividend increase. Therefore, in this section, I will show the companies that have already announced a dividend increase in February and the remaining, expected dividend increases.

Companies that Have Already Announced a Dividend Increase in February 2021

Company #1: 3M Company (MMM): 3M is one of my favorite dividend stocks. That is why I am always excited for February. Each year, the company announces a dividend increase at the beginning of the month. The Dividend King has always delivered for me. With strong dividend increases from others, I was definitely excited to see what 3M had in store for us.

Unfortunately, after seeing the press release, I left disappointed. 3M announced a minimal dividend increase.  3M announced a pathetic .68% increase in its quarterly dividend. Ugh, that is not at all what I was expecting. Nothing is worse than when an investment’s dividend increase doesn’t even cover inflation.

Company #2: Unilever (UL):  One of the best consumer staple dividend stocks out there. Unilever is right up my alley, as it has some of the strong brand names out there.  Ironically, despite their strong yield and dividend history, I have never actually purchased shares of UL. Instead, I have opted for Procter & Gamble, on of our Top 5 Foundation Dividend Stocks.

Unilever jumped out of the gate in February and announced a 6.1% increase in its quarterly dividend. Love seeing that dividend increase, especially after reading about the dud of a dividend hike we received from 3M.

Company #3: Kansas City Southern (KSU): Lanny and I are both shareholders of Norfolk Southern (NSC). NSC decided to forgo a dividend increase in January. Therefore railroad stocks were completely off our radar.

Imagine how shocked I was when I read that Kansas City Southern increased its dividend 22.7% at the beginning of February. That is such an insane dividend increase that we had to feature it in this article, despite the fact that we are no shareholders.

Company #4: eBay (EBAY) – This is a fun one for the two of us. eBay is a great website to sell stuff around your and make a dollar or two. It is a fantastic avenue for those looking to side hustle and grow their income. That is why we were so pumped to see that the company announced a 12.5% dividend increase at the beginning of February.

Company #5: Capital One Financial (COF): The banking sector continues to deliver insane dividend increases to shareholders.  Every bank has reported earnings. The dividend increases and share buybacks that have been announced are unbelievable. Banks have a lot of capital to put to work. Capital One did not disappoint.  Capital One delivered a 300% dividend increase to its shareholders. You read that right…300%.

Expected Dividend Increases in February 2021

That was a long list right? Man, a lot of companies have already announced a dividend increase in February. The craziest part is that I easily could have included 5 more! But YOU don’t have enough coffee for that. So now, let's cover the companies that still have not announced a dividend increase in February…yet! Get ready. This list is going to feature some FANTASTIC dividend growth stocks.

Company #1: Coke (KO): The Dividend King of Dividend Kings right here. One of the most iconic American brands are set to announce a dividend increase in February. Could it be any more fitting than announcing an increases in February, during the super bowl.

• Consecutive Dividend Increases: 58 years
• 5-Yr Average Dividend Growth Rate: 4.45%
• Expected Timing of Dividend Announcement: End of the Month

Company #2: Pepsi (PEP): – Let’s not forget about Coke’s arch-rival Pepsi. They are also set to announce their dividend increase in February. We prefer owning Pepsi over Coke due to the company’s diversified product lines. Soda and snacks? Pepsi and Doritos? Can you think of a better combo?

• Consecutive Dividend Increases: 49 years
• 5-Yr Average Dividend Growth Rate: 7.84%
• Expected Timing of Dividend Announcement: Middle of the Month

Company #3: Genuine Parts Company (GPC): – This Dividend King is another personal favorite of mine. The company dominates a critical sector, the secondary auto parts market. People will always need cars. As we know, cars are expensive and always require SOME KIND of repair, right?  I couldn’t be happier that we started a position in GPC in my wife’s portfolio last year. We are pumped for this dividend increase.

• Consecutive Dividend Increases: 64 years
• 5-Yr Average Dividend Growth Rate: 5.15%
• Expected Timing of Dividend Announcement: Middle of the month

Company #4: T.Rowe Price Group (TROW): I told you that there were a lot of fantastic companies this month. T.Rowe Price is another company set to announce a dividend increase in February. T.Rowe is a major player in the asset management sector. The company has a strong balance sheet (no debt) and a great fund family that offers investors some great, low cost investment options.

• Consecutive Dividend Increases: 34 years
• 5-Yr Average Dividend Growth Rate: 11.73%
• Expected Timing of Dividend Announcement: Middle of the month

Company #5: Walmart (WMT): –  Walmart is going toe to toe with Amazon. The company has one major advantage…its store footprint. Walmarts are ALWAYS crowded. Typically, when I go, I see long checkout lines with jam-packed carts. It is no wonder the company dominates. Further, their successful rollout of Walmart Plus gives shoppers a true competitor to Amazon Prime…for a lower price. The only con with Walmart is that the company has a very low dividend growth rate.

• Consecutive Dividend Increases: 47 years
• 5-Yr Average Dividend Growth Rate: 1.96%
• Expected Timing of Dividend Announcement: Middle of the month

Company #6: United Parcel Services (UPS):  When the pandemic struck, UPS was ready to help. Consumer shopping habits have always been trending towards online shopping. However, the pandemic accelerated this trend. Now, UPS trucks are everywhere in your neighborhood. I know I personally see them outside multiple times per day, delivering packages to all my neighbors. The company’s stock price has reacted positively as well and continues to climb. Now, lets see if the dividend follows this trend as well.

• Consecutive Dividend Increases: 11 years
• 5-Yr Average Dividend Growth Rate: 6.71%
• Expected Timing of Dividend Announcement: Middle of the month

Company #7: Home Depot (HD): – Another benefactor of the pandemic. Home Depot has seen a surge in sales due to the fact that people are using their travel budgets towards those home improvement projects.  Home Depot is my home improvement store of choice as well. While I don’t own HD stock, I am excited to see if the company announces another 20% dividend increase.

• Consecutive Dividend Increases: 11 years
• 5-Yr Average Dividend Growth Rate: 20.5%
• Expected Timing of Dividend Announcement: End of the month

Company #8: Cisco (CSCO): – Last, but definitely not least, Cisco systems. Cisco was a favorite company of mine in 2020. When the price fell, I took advantage of an opportunity to build a position for my wife and I in the network security giant. So you bet that we are PUMPED UP for the company’s dividend increase. Last month, Intel announced an increase that was larger than their five-year average. I would love to see Cisco do the same.

• Consecutive Dividend Increases: 9 years
• 5-Yr Average Dividend Growth Rate: 11.7%
• Expected Timing of Dividend Announcement: Middle of the month

Summary

Man oh man. I am getting pumped up just reading through this list. So many great dividend stocks are set to announce a dividend increase in February. So everyone, let's buckle up and watch our passive income grow!

What dividend increases are you expecting to receive this month? How many of the above companies do you own? What dividend increases did you receive last month?