Dividend Increases Q1 2014
Here’s a list of some recent dividend increases:
Avista (AVA) raised annual dividend per share from $0.305 to $0.3175 (4.1% increase), increasing annual dividend from $181.70 to $189.15. Dividend CAGR: 4.1%
Bemis (BMS) raised annual dividend per share from $0.26 to $0.27 (3.9% increase), increasing annual dividend from $52.35 to $54.36. Dividend CAGR: 3.85%
Cisco (CSCO) raised annual dividend per share from $0.17 to $0.19 (11.8%), increasing annual dividend from $71.58 to $80.00. Dividend CAGR: 11.8%
Coca-Cola (KO) raised annual dividend per share from $0.28 to $0.305 (8.9%), increasing annual dividend from $94.33 to $102.75. Dividend CAGR: 8.9%
While some of the raises are small, they are all above the current level of inflation. As of today, my estimated annual dividend is $1,972 or $164/month.
To put these dividend increases in perspective, Bemis raised its dividend by 3.9%. This is still above inflation, but significantly below what the historic dividend increase rate is for all the stocks in my portfolio. If I assume that my portfolio will increase dividends by 3.9% over the course of the next few years, the increase on year 1 will be $76; on year 2 it will be $80; on year 3 it will be $83. By year 3 my annual dividends will have increased to $2,212 or $184/month. And, this is assuming an annual increase far lower than I anticipate with no additional contribution of capital. While I haven’t been able to invest much recently due to educational expenses, once I’m able to invest again, the additional money will allow the annual increases to snowball.
Full disclosure: Long AVA, BMS, CSCO, KO