6 Expected Dividend Increases In January 2024

Time to enter the new year in style! We love dividend increases because your passive income grows without lifting a finger. We are watching the news every single day to see what stocks announced a dividend increase to determine if our income grew! In this article, we are going to feature 6 expected dividend increases in January 2024. You can bet that we will be tweeting out when each of these 6 increases happens.

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 2023, with high inflation, bank runs, and other major events, 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 3rd 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 a company’s five-year average dividend growth rate!

Clearly, as you all are learning, we are passionate about dividend and dividend growth!

Expected Dividend Increases in January 2024

There are going to be some heavy-hitting dividend stocks that announce dividend increases in January. There will be several Dividend Kings (50+ consecutive annual dividend increases) and Dividend Aristocrats (25+ consecutive annual dividend increases). Let’s dive right in and start learning about the 6 stocks.

Dividend Stock #1: Cincinnati Financial (CINF)

We are starting this party off with a Dividend King. Cincinnati Financial is a staple in the insurance sector and has a strong track record of increasing its dividend. The company has increased its dividend for over 6 decades with a strong, high-single digit average dividend growth rate. Last year, CINF delivered a strong dividend increase despite the rising interest rate environment and several economic headwinds. I wasn’t expecting a strong increase until a month ago. Insurance companies have large investment portfolios that are critical to a company’s bottom line. With the S&P 500’s strong December and a rosy economic forecast for 2024 (by many analysts), I’m curious if that will change the management team’s dividend expectations for 2024.

• Dividend Yield: 2.95% (as of 12/26)
• Consecutive Dividend Increases: 63 years
• 2023 Dividend Increase: 8.7%
• 5-Yr Average Dividend Growth Rate: 7.19%
• Expected Timing of Dividend Announcement: End of the Month

Dividend Stock #2: Kimberly-Clark (KMB)

Time to head over to the consumer staples sector and feature another Dividend King. Kimberly-Clark owns many big-name brands that you can recognize throughout your house. The list includes Cottonelle, Huggies, Kotex, Kleenex, Scott, Andrex, WypAll, and Pull-Ups. These are just several of many brands amassed by the company that has been in business for over 150 years. I love the dividend history but have never purchased Kimberly-Clark because of the company’s low dividend growth. Their five-year average dividend growth rate is awful and 2023’s dividend increase was below this average! I’m not expecting anything above the company’s average when they announce their dividend increase in January.

• Dividend Yield: 3.93% (as of 12/26)
• Consecutive Dividend Increases: 51 years
• 2023 Dividend Increase: 1.7%
• 5-Yr Average Dividend Growth Rate: 3.37%
• Expected Timing of Dividend Announcement: End of the Month

Dividend Stock #3: Archer-Daniels-Midland (ADM)

Ah, a Dividend Aristocrat that is almost a Dividend King. The company has a very low P/E Ratio and payout ratio. We love ADM because of its role in the food sector. They are a critical process of the food chain and are also major players in the fuel sector. A recipe for success that should lead to strong dividend growth for years to come. I’m not expecting a 12.5% dividend increase like last year. However, I am expecting an above-average dividend increase closer to 8% in 2024.

• Dividend Yield: 2.52% (as of 12/26)
• Consecutive Dividend Increases: 48 years
• 2023 Dividend Increase: 12.5%
• 5-Yr Average Dividend Growth Rate: 6.08%
• Expected Timing of Dividend Announcement: End of the Month

Dividend Stock #4: Air Products and Chemicals, Inc. (APD)

Transparently, I do not know much about this Dividend Aristocrat. Per Google, “Air Products and Chemicals, Inc. is an American international corporation whose principal business is selling gases and chemicals for industrial uses.” They are a major player in a sector that is critical to the success of our country’s industrial power. What I do like about APD is the company’s dividend yield (2.5%+) and strong dividend growth rate (10% on average). That is an excellent dividend yield and growth combination. In 2024, I’m expecting another 8-10% dividend increase in line with the company’s average.

• Dividend Yield: 2.57% (as of 12/26)
• Consecutive Dividend Increases: 40+ years
• 2023 Dividend Increase: 8%
• 5-Yr Average Dividend Growth Rate: 10.11%
• Expected Timing of Dividend Announcement: End of the Month

Dividend Stock #5: Comcast (CMCSA)

Comcast is making headlines in December. Not due to anything the company is doing. Rather, Comcast is getting mentioned as another potential bidder in the Warner Bros. Discovery (WBD) and Paramount (PARA, PARAA) merger discussions. It is rumored that Comcast may purchase one of the two companies to add to its NBC Universal portfolio. Dividend growth is difficult to forecast for Comcast due to headwinds facing the industries in which it operates. Comcast is insulated because of the company’s strength in multiple segments. The question is, will the diversification allow the company to maintain high-single digit dividend growth in 2024?

• Dividend Yield: 2.64% (as of 12/26)
• Consecutive Dividend Increases: 14 years
• 2023 Dividend Increase: 7.4%
• 5-Yr Average Dividend Growth Rate: 9.41%
• Expected Timing of Dividend Announcement: End of the Month

Dividend Stock #6: Consolidated Edison (ED)

Last, but definitely not least, is one of our Top 5 Foundation Dividend Stocks! That’s right, we are discussing Consolidated Edison. We love ConEd because of the company’s role in the utility sector and its strong, reliable, and consistent dividend growth history. The growth may not be the highest; however, you can always rely on a dividend increase from this utility company. They are on the verge of becoming a Dividend King as well. In 2024, we are expecting a dividend increase in line with the company’s 5-year average dividend growth rate.

• Dividend Yield: 3.61% (as of 12/26)
• Consecutive Dividend Increases: 48 years
• 2023 Dividend Increase: 2.5%
• 5-Yr Average Dividend Growth Rate: 2.53%
• Expected Timing of Dividend Announcement: Middle/End of the Month

Summary

There we have it. 6 expected dividend increases in January 2024. What surprised me about this list is the number of companies that are Dividend Kings or are on the verge of becoming a Dividend King.

From this list, I own 3 of the stocks: Cincinnati Financial, Archer Daniels Midland, and Consolidated Edison. My wife and I are looking forward to receiving increases from each. Fingers crossed they shock us with a strong dividend increase above its average!

How many of the companies with dividend increases expected in January do you own? What other dividend increases have you received lately?

Bert

Original Post

Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.