Each month we take a look at some notable payout changes by some of the dividend stocks followed by the Joule Financial Dividend Growth Model. Below are the standouts from the month of September.

McDonald’s (MCD)

Raised By: 14.8%

New Dividend: $1.16/qtr

McDonald’s has been a long-time favorite of dividend investors, and rightfully so, since the company has increased its dividend payments now for over 40 years. This year saw a double-digit raise by the company which boosted their dividend over 14% and provides a current forward yield of 2.8%. As the stock price has marched higher over the last ten years the dividend has managed to do the same, providing an annualized increase of more than 8% each year.

 

Microsoft (MSFT)

Raised By: 9.5%

New Dividend: $0.46/qtr

Microsoft has set itself apart in the technology crowd by paying a growing dividend for fourteen years now. This year’s increase was another favorable nod to dividend-focused investors in the company who will see 9% growth in their income on their shares. While the forward yield of 1.6% is somewhat low in comparison to other dividend names out there the ten year annualized dividend increase of 13% provides investors some level of confidence that the company is focused on continually increasing that dividend over time.

 

JPMorgan Chase (JPM)

Raised By: 42.8%

New Dividend: $0.80/qtr

Banks were the standout sector this month in terms of dividend changes and JPMorgan Chase stood out from the crowd. Dividend investors in this company will see their payouts increase by over 40% this quarter due to the company’s substantial dividend raise. Looking back historically, the company has managed to raise its dividend by approximately 7% annually over the last decade. However, the company’s dividend growth history goes back only 7 years due to the impact the financial crisis and bank bailouts had specifically on the financial sector. With the company’s 2.8% forward yield at the new dividend amount, income investors will likely be looking at this name going forward.

 

U.S. Bank (USB)

Raised By: 23.3%

New Dividend: $0.37/qtr

U.S. Bank was another fine example of the growing dividends in the financial sector. While the company’s ten year dividend growth is actually negative at -1.4% it is exclusively the result of the financial crisis. With many of the systemic liquidity issues now a decade behind and the bank being one of the many cleared to continue raising its dividend, investors should continue to see payouts increase in the future. With a forward yield of 2.8% and a healthy outlook for the financial sector in the near term it’s likely U.S. Bank will be on income investors radar for the end of the year and into next few.

 

Verizon Wireless (VZ)

Raised By: 2.1%

New Dividend: $0.6025/qtr

Telecoms are often overlooked in terms of their dividend growth potential. However, even though their increases typically just mark time with inflation, 2.7% over the last decade in Verizon’s case, it provides investors with a source of income that can keep up with the spending needs over time. With its current 4.5% forward yield the company will naturally attract the eyes of those seeking current income rather than income growth. However, the compounding nature of even 2% annual increases should warrant a look by dividend growth investors as well.

 

Daniel Czulno serves as portfolio manager for the Joule Financial Dividend Growth Model. This model seeks to provide investors income from dividends that grows over time more than inflation. For more information on the Joule Financial Dividend Growth Model please CONTACT US.
As of the time this article was published clients and/or employees of Joule Financial owned positions in JPM, MCD, MSFT, & VZ.
All data accurate as of the date of publication. Sources: MorningstarDividend.com