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Tuesday, September 30, 2014

Dividend Increases, September 16-30, 2014

Twice a month, I report on dividend increase announcements for stocks in my watch list, a subset of David Fish's CCC stocks (Champions, Contenders, and Challengers) and a few non-CCC holdings in DivGro. I find this to be a useful way to identify dividend growth candidates, because companies that increase their dividends regularly show confidence in future earnings growth.

Another reason for monitoring dividend increases is to track the yield on cost (YoC) of stocks I own. When dividends are increased, I make YoC adjustments and update DivGro's projected annual dividend income. 

This month, three of DivGro's holdings announced dividend increases. MSFT increased its quarterly dividend by 3¢ per share, or nearly 11%. MCD announced a more modest increase of 4.94%, while PMT is increasing its dividend by 3.39%.

Below is the table of dividend increases announced in the last two weeks of September, sorted by the last column, %Increase. Dividend amounts are annualized.

Dividend Increases: September 16-30, 2014


(Aug 29)

Lockheed Martin Corporation LMT 182.78 5.32 6.003.28% +12.78
Microsoft Corporation MSFT 46.36 +10.71
Accenture Plc ACN 81.32 1.86 2.042.51% +9.68
The First of Long Island Corporation FLIC 34.45 1.04 1.123.25% +7.69
McDonald's Corporation MCD 94.81 3.24 3.403.59% +4.94
W.P. Carey Inc WPC 63.77 3.60 3.765.90% +4.44
PennyMac Mortgage Investment Trust PMT 21.43 2.36 2.4411.39% +3.39
Previous post: Dividend Increases: September 1-15, 2014

I own shares in MCDMSFT, and PMT:

• Microsoft Corporation (MSFT) growth 12 yrs | yield 2.67% @ $46.36 | 5-yr CAGR 16.1%
Software giant MSFT declared a new quarterly dividend of 31¢ per share, payable to shareholders of record on November 20. The dividend will be paid on December 11. The increase adds $9.60 to DivGro's projected annual dividend income while YoC increases to 3.90%.

• McDonald's Corporation  growth 39 yrs | yield 3.59% @ $94.81 | 5-yr CAGR 13.9%
On Thursday, September 18, MCD announced an increase of its quarterly dividend to 85¢ a share, an increase of nearly 5%. The dividend is payable on December 15 to shareholders of record on December 1.  Because I bought my shares of MCD after the dividend increase announcement, no adjustments to YoC and projected annual dividend income are needed at this time.

PennyMac Mortgage Investment Trust | growth 5 yrs | yield 11.39% @ $21.43 | 5-yr CAGR n/a
The Board of Trustees of specialty finance company PMT declared a cash dividend of 61¢ per share, an increase of just more than 3%. The dividend is payable on October 30, to shareholders of record on October 10. The increase adds $9.60 to DivGro's projected annual dividend income. YoC is now 11.65%.

Three other dividend increases announced in this period top 7%:

• Lockheed Martin Corporation (LMT) growth 12 yrs | yield 3.28% @ $182.78 | 5-yr CAGR 21.2%
LMT is a global enterprise engaged in the research, design, development, manufacture and integration of advanced technology systems. On September 25, the company declared a dividend of 150¢ per share, payable on December 26 to shareholders of record on December 1. The new dividend represents an increase of nearly 13%. 

• Accenture Plc (ACN) | growth 10 yrs | yield 2.51% @ $81.32 | 5-yr CAGR 28.3%
Founded in 1989 and based in Dublin, Ireland, ACN is engaged in providing management consulting, technology and outsourcing services. On Friday, September 26, ACN increased its semiannual dividend to 102¢ per shareThe dividend is payable on November 17 to shareholders of record on October 17.

• The First of Long Island Corporation (FLIC) | growth 19 yrs | yield 3.25% @ $34.45 | 5-yr CAGR 9.9%
FLIC is a one bank holding company providing financial services through its wholly owned subsidiary, The First National Bank of Long Island. The bank offers a variety of deposit products with a range of interest rates and terms. FLIC will pay a quarterly dividend of 28¢ per share on October 15 to shareholders of record on October 1.

Please note: These stocks are not recommendations. Readers are advised to do their own research before buying shares.

Full Disclosure: Long MCD, MSFT, PMT

Do you own shares of any of these companies (or do you plan to buy any of them)?


  1. Great list of dividend increases. I'll tell you what, LMT has been just on FIRE and I am not surprised at all to their double digit increase. This recent correction is opening up some nice doors.

    Hope all is well.

    1. Thanks for stopping by, DividendVet! I own LMT in an income portfolio (not DivGro) and I'm up 134% (without dividends!). It has been a GREAT performer! Maybe I should look at it for DivGro...



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