November is about to be a SPECTACULAR month of dividend increases. We have 9 expected dividend increases in November, including several Dividend Kings! In this article, we will discuss the 9 companies in detail, along with summarizing some of October’s featured dividend increases.

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!

Read: 5 Reasons WHY Dividend Investing is the EASIEST Form of Passive Income

If the goal is to produce a passive income stream that will one day cover our expenses, making sure that income stream GROWS is critical. Without growth, your dividend income stream will lose purchasing power to inflation. In 2022, this is a major problem, because inflation in 2022 continues to SOAR!

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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!

We cover dividend news extensively on our Youtube Channel. Each week, we discuss the major dividend increases from the week before. Clearly, as you all are learning, we are passionate about dividend and dividend growth!

Actual Dividend Increases in October 2022

Before we look ahead to an exciting month of dividend increases, let’s look back and see if the 5 featured dividend stocks from last month’s article delivered strong dividend increases!

Our article last month featured 5 expected dividend increases projected for October. Here were the results.

1. 1. AbbVie (ABBV): 5% dividend increase
   2. Exxon Mobil (XOM): 3.4% dividend increase
   3. Rockwell Automation (ROK): 5.4% dividend increase
   4. AEP (AEP): 6.4% dividend increase
   5. McDonalds (MCD): 10.1% dividend increase (They made us wait a little; however, it was worth it for a 10.1% dividend increase)

Still, above and beyond the stocks listed above, there were other EXCELLENT dividend increases that were announced as well. We’dd be fools if we didn’t list a few other companies that we did not feature last month, right?

• Visa (V): 20% dividend increase….I cannot believe I missed this  dividend increase in last month’s article. For all the companies to leave out….Visa. They continue to crush it from the dividend increase front. Their dividend yield may be low, but the dividend increases are mighty.
• Westrock (WRK): 10% dividend increase. We both have owned Westrock for years. We couldn’t be happier that this dividend stock announced a 10% dividend increase.

Dividend Increases Expected in November  2022

Dividend Stock #1:  Hormel (HRL): We are starting this party off with a Dividend King (a company that has increased its dividend for 50+ years). Hormel has a brand portfolio that is best in class, and can be found in almost all of your pantries and throughout the grocery store. When times are great, or when times are tough, you’ll be looking to buy Hormel’s products.  The company is the model of consistency, especially in terms of dividend increases. We should expect another high single digit dividend increase for the consumer staple giant.

• • • Consecutive Dividend Increases: 55+ years
    • 2021 Dividend Increase: 8.3%
    • 5-Yr Average Dividend Growth Rate: 8.87%
    • Expected Timing of Dividend Announcement: End of Month

Dividend Stock #2:  Emerson Electric (EMR): This will most likely be one of the first dividend increases of the month. Emerson does not mess around. They increase their dividend right out of the gate.  This dividend king is known for many things; however, strong dividend growth is not one of them. In fact, their dividend growth over the last several years has been pathetic. There are reports the company plans to sell off some units and slim down. Hopefully they will make some moves that will allow them to report strong earnings growth and begin hiking their dividend in a meaningful way each year!

• • • Consecutive Dividend Increases: 64+ years
    • 2021 Dividend Increase: 2.0%
    • 5-Yr Average Dividend Growth Rate: 1.2%
    • Expected Timing of Dividend Announcement: Beginning of Month

Dividend Stock #3: McCormick & Company (MKC): Just in time for Thanksgiving. I couldn’t think of a more appropriate dividend stock to announce a dividend increase at the end of November. This Dividend Aristocrat, which is known for its mouth watering spices, will deliver shareholders’ dividend income stream a nice little kick this month. MKC has a solid dividend history. In particular, I love the high single digit average dividend growth rate for this consumer staple giant. I just wish they had a higher dividend yield (1.87%).

• • • Consecutive Dividend Increases: 35+ years
    • 2021 Dividend Increase: 8.8%
    • 5-Yr Average Dividend Growth Rate: 9.50%
    • Expected Timing of Dividend Announcement: End of Month

Dividend Stock #4:  Becton Dickinson and Company (BDX): Ladies and gentleman….we are going to have a NEW DIVIDEND KING on our hands after Becton Dickinson and Company announces a dividend increase at the beginning of November. This club is exclusive, for a reason. Its not every day we get to see a new member. Based on how 2022 is going, we’re not expected BDX to announce a dividend increase significantly different from their five-year average growth rate. My guess is between 4% – 5%.

• • • Consecutive Dividend Increases: 49+ years
    • 2021 Dividend Increase: 4.8%
    • 5-Yr Average Dividend Growth Rate: 4.7%
    • Expected Timing of Dividend Announcement: Beginning of Month

Dividend Stock #5:  Dover Corporation (DOV): Wow. November really is the month of Dividend King dividend increases. Dover may not be a household dividend king, like Johnson & Johnson or Procter Gamble. However, their 65+ years of dividend increases are one of the longest dividend increase streaks out there. 2021’s dividend increase was uncharacteristically low. It’ll be fascinating to see if the low dividend growth is their new norm or if Dover will revert back to their five-year average dividend growth rate. My prediction is that they will increase their dividend 4% – 5% this year.

• • • Consecutive Dividend Increases: 65+ years
    • 2021 Dividend Increase: 2.0%
    • 5-Yr Average Dividend Growth Rate: 6.7%
    • Expected Timing of Dividend Announcement: Beginning of Month

Dividend Stock #6:  Merck &  Company (MRK): Let’s change sectors entirely. AbbVie kicked off the pharmaceutical dividend increase party in October with a 10% dividend increase (as we noted above). Now, it is Merck’s turn. Merck is having a stellar 2022. The company’s stock price is up over 30% year to date. That’s incredible, given how poorly the broader market has performed. I could easily see Merck announcing a double-digit percent dividend increase to reward shareholders for the strong year. I’m going to predict a 10% – 12% dividend increase. Lets see how it goes.

• • • Consecutive Dividend Increases: 11+ years
    • 2021 Dividend Increase: 6.2%
    • 5-Yr Average Dividend Growth Rate: 9.01%
    • Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #7:  ADP (ADP): Time to talk payroll and payroll processing. Please everyone, don’t run for the door, given this isn’t the most exciting of topics. ADP provides a critical process for both large and small companies. Once you sign up for ADP’s payroll services, it is not easy to switch. It is the kind of company that I would like to evaluate further to see if they are an undervalued dividend stock to buy, by running them through our stock screener!  I’m guessing ADP will announce a 6% – 8% dividend increase this year. Like last year, it will be slightly below their five-year average.

• • • Consecutive Dividend Increases: 11+ years
    • 2021 Dividend Increase: 6.2%
    • 5-Yr Average Dividend Growth Rate: 9.01%
    • Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #8:  Nike (NKE): The swoosh. Just do it. Michael Jordan. LeBron James. Do I need to say anything else about this dividend stock? We are pumped up to see what Nike has in store for its investors. Nike consistently delivers double-digit dividend increases to their shareholders. Will they do it again? My prediction is a 10% dividend increase. It would be awesome if they surprised us all and crushed that expectation, right?

• • • Consecutive Dividend Increases: 9+ years
    • 2021 Dividend Increase: 10.9%
    • 5-Yr Average Dividend Growth Rate: 11.12%
    • Expected Timing of Dividend Announcement: Middle of Month

Dividend Stock #9: Mastercard (MA): There is a caveat here, and there is a reason Mastercard is last on the list. MA announces its dividend either at the beginning of December or the last day of November. So this dividend increase could easily b e kicked out to December as well. However, last month, Visa delivered a strong 20% dividend increase. Now, lets see what potential tricks Mastercard has up its sleeve.  Usually, these two stocks move in tandem together and deliver similar dividend increases. It wouldn’t shock me at all if Mastercard also announces a 20% dividend increase…or even decides to one up their rival with a larger one.

• • • Consecutive Dividend Increases: 11+ years
    • 2021 Dividend Increase: 11.4%
    • 5-Yr Average Dividend Growth Rate: 17.37%
    • Expected Timing of Dividend Announcement: End of Month

Summary

November will be a busy month indeed. 9 companies are expected to announce a dividend increase in November. Further, every month, there seem to be a few surprise dividend increases that we are not expecting. Let’s see just how many strong dividend increases we will receive in November.  From this list, I only own 1 of the stocks. Outside of Emerson Electric, this is going to be a quiet month!

How many of the 9 dividend stocks do you own? Are you looking forward to the expected dividend increases in November? Further, how many dividend increases did you receive in October?!

Bert