5 Expected Dividend Increases In May 2024

We are always on the lookout for dividend increases. Whether it is on our website or social media platforms, we are always sharing dividend increase news. In this article, we are featuring 5 expected dividend increases in May 2024.

Why do we suspect these companies are going to announce a dividend increase in May? The dividend stocks featured in this article all have a history of announcing their annual dividend increases in May. The funny thing about large, blue-chip dividend-paying stocks is that they are generally pretty consistent with dividend announcements. Management teams prefer announcing and paying dividends around the same time every quarter. Plus, shareholders like us also enjoy the predictability and consistency of dividend payments. Especially once you retire and live on your dividend income.

The same consistency applies for dividend increase announcements. For the most part, companies announce their annual dividend increases in the same month every year. (Of course, there are always exceptions to the rule.) Each of the featured dividend stocks, when reviewing their history, have announced dividend increases in May in recent history. That is why we are so confident that each of the featured dividend stocks will once again increase its dividend in May.

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. If you haven’t figured it out by now, we eat, sleep, and breathe dividends. In 2024, with high inflation, 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 third 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 its five-year average dividend growth rate.

Actual Dividend Increases in April 2024

Last month, we featured 11 dividend stocks that were expected to announce dividend increases in April. Let’s see how the actual dividend increases compared to each stock’s five-year average dividend growth rate.

1.) Johnson & Johnson (JNJ): 4.2% (BELOW 5.75% 5-Year Avg. Growth Rate)

2.) Procter & Gamble (PG): 7% (ABOVE 5.58% 5-Year Avg. Growth Rate)

3.) W.W. Grainger (GWW): 10% (ABOVE 6.46% 5-Year Avg. Growth Rate)

4.) Costco (COST): 13.7% (ABOVE 12.34% 5-Year Avg. Growth Rate)

5.) Apple (AAPL): 4.2% (BELOW 5.63% 5-Year Avg. Growth Rate)

6.) IBM (IBM): 0.6% (BELOW 2.05% 5-Year Avg. Growth Rate)

7.) Sysco (SYY): 2.0% (BELOW 6.24% 5-Year Avg. Growth Rate)

8.) Travelers Companies (TRV): 5% (BELOW 5.37% 5-Year Avg. Growth Rate)

9.) The Southern Company (SO): 2.9% (Below 3.13% 5-Year Avg. Growth Rate)

10.) RTX Corporation (RTX): NOT DECLARED AS OF 5/2/24

11.) Parker-Hannifin (PH):18.2% (ABOVE 14.26% 5-Year Avg. Growth Rate)

Of course, there was a surprise dividend increase. Alphabet (GOOG, GOOGL) announced its first-ever dividend ($.20 per share). In addition, the company also announced a $70 billion share buyback plan. Welcome to the dividend paying club Alphabet.

Expected Dividend Increases in May 2024

Now, let’s look ahead to May 2024 and review the expected dividend increases in the upcoming month. We are expecting 5 dividend increases. Hopefully, more will announce dividend increases than last month. That was very disappointing.

In this section, we will present two dividend yields: the current dividend yield as of 5/2/24 and the forecasted dividend yield. The forecasted dividend yield is the potential future dividend yield for the stock if management announces a dividend increase in line with their five-year average dividend growth rate.

Dividend Stock #1: Cardinal Health (CAH)

Cardinal Health has been on fire over the last 52 weeks. The stock is up 25% over the last year. The appreciation has been phenomenal for the stock. However, the dividend growth has not. In fact, the company’s last five dividend increases average 1%. Will the company’s strong performance allow management to break the negative streak and announce a strong dividend increase?

• Current Dividend Yield: 1.96% (as of 5/2/24)
• Forecasted Dividend Yield: 1.98%
• Consecutive Dividend Increases: 29+
• 2023 Dividend Increase: 1%
• 5-Yr Average Dividend Growth Rate: 1%
• Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #2: Lowe’s Companies (LOW)

Lowe’s Companies has ridden the increase in DIY projects, home improvements, and home construction boom to a 100%+ stock price increase over the last 5 years. Unlike Cardinal Health, Lowe’s has announced strong dividend increases over the same period. The 5-year average dividend growth rate is over 18%. This Dividend King has had no problem rewarding shareholders and sharing its successes with those that have invested in the home improvement stock.

• Current Dividend Yield: 1.93% (as of 5/2/24)
• Forecasted Dividend Yield: 2.28%
• Consecutive Dividend Increases: 60+
• 2023 Dividend Increase: 4.7%
• 5-Yr Average Dividend Growth Rate: 18.04%
• Expected Timing of Dividend Announcement: End of Month

Dividend Stock #3: Medtronic (MDT)

Medtronic is a Dividend Aristocrat that is closing in on its journey to becoming a Dividend King. This has been one of Bert’s favorite dividend growth stocks to buy lately. With that in mind, he will definitely be eagerly anticipating the medical supply company’s upcoming dividend increase.

• Current Dividend Yield: 3.41% (as of 5/2/24)
• Forecasted Dividend Yield: 3.64%
• Consecutive Dividend Increases: 45+
• 2023 Dividend Increase: 1.47%
• 5-Yr Average Dividend Growth Rate: 6.65%
• Expected Timing of Dividend Announcement: End of Month

Dividend Stock #4: Chubb Limited (CB)

The insurance sector has delivered mixed dividend increases in 2024. In fact, several of the actual increases by companies in the sector have been disappointing (as we have covered in previous articles). This stock has been on fire over the last year. However, Cardinal Health’s dividend growth has been lagging.

• Current Dividend Yield: 1.38% (as of 5/2/24)
• Forecasted Dividend Yield: 1.43%
• Consecutive Dividend Increases: 31+
• 2023 Dividend Increase: 1.47%
• 5-Yr Average Dividend Growth Rate: 3.6%
• Expected Timing of Dividend Announcement: End of Month

Dividend Stock #5: LyondellBasell Industries N.V. (LYB)

LyondellBasell is one of our favorite dividend growth stocks. The historical dividend growth rate is very misleading. Why? LYB is known to announce massive special dividends every once in a while. Thus, even though LYB has a 5% average dividend growth rate, the company makes up for it with massive one-time dividend payments. The last special dividend was in 2022. I doubt a special dividend will be announced this year… but there is always a chance.

• Current Dividend Yield: 5.02% (as of 5/2/24)
• Forecasted Dividend Yield: 5.25%
• Consecutive Dividend Increases: 10+
• 2023 Dividend Increase: 5.04%
• 5-Yr Average Dividend Growth Rate: 4.56%
• Expected Timing of Dividend Announcement: End of Month

Summary

There we have it. 5 expected dividend increases in May! We are expecting 3 of the 5 increases since we own shares of Cardinal Health, Medtronic and LyondellBasell Industries. Now, let’s see if these stocks can deliver us some surprise, strong dividend increases!

How many dividend increases are you expecting in May? Were you surprised by any of the April dividend increases?