The first quarter of they year is always a great season to be in. Full year earnings are being published and for many European and US companies this is the time that their dividend proposals are announced. So let’s have a look at several January Dividend Announcements from companies that continue to shower their shareholders with ever-increasing dividends ✨
Dividend Announcements from Noble 30 Members
Let’s start with the Noble 30 members:
Castellum AB announced an annual dividend increase of 6.15% from 6.50 SEK to 6.90 SEK. This is inline with their 10 year compound annual growth rate of 6.43%. The stock currently yields 3.43% with a payout ratio of 55% based on net income from property management. This is their 23rd consecutive dividend increase. The company pays their dividend in two instalments of 3.45 SEK and the first one will go ex-dividend on 26 March 2021.
Diageo Plc announced that their interim-dividend will be increased by 2% to 27.96 pence per share. This means a trailing-twelve-months dividend of 70.23 pence per share at a payout ratio of approximately 75%. It is their 30th consecutive dividend increase and it currently yields 2.38%. The stock will go ex-dividend on 25 February 2021.
Novartis AG announced an annual dividend increase of 1.7% from .295 CHF to 3.00 CHF. This is slightly below their 10 year compound annual growth rate of 2,92%. The stock currently yields 3.73% with a payout ratio of 85% based on IFRS EPS (52% Core EPS). This is their 27th consecutive dividend increase and the stock will go ex-dividend after approval at their annual shareholder meeting on 2 March 2021.
Philips NV announced an annual dividend of 0.85 Euro which is in line with last year’s dividend. This is a bit disappointing, because the company has definitely some room to increase their dividend. They currently have a 65% EPS payout ratio and 42% Free Cash Flow payout ratio. It is their 28th year of not lowering their dividend and it currently yields 1.9%. The stock will go ex-dividend on 10 May 2021. We still have some time to make a decision 😉
Other notable January Dividend Announcements
Let’s look also at some other notable dividend announcements in January. I’ll start from the largest hike until the lowest hike.
LVMH SE announced an annual dividend hike of 25% from 4.80 Euro to 6.00 Euro. But to be fair, LVMH cut their dividend in 2019 from 6.00 Euro to 4.80 Euro after initially proposing a dividend hike. It’s good to see the company get back again to their normal track record of paying growing dividends now that they know that their earnings were strong enough. The stock currently yields 1,19% with a payout ratio o 64.31%. An interim dividend of 2 Euro was already paid in December, hence a final dividend of 4 Euro will go ex-dividend on 15 April 2021
Linde Plc announced an annual dividend increase of 10% to $4.24. This rate is above their 10 year compound annual growth rate of 7,90%. The stock currently yields 1.73% with a payout ratio of 101% based on their twelve-trading-months earnings per share. This is their 28th consecutive dividend increase and the stock will go ex-dividend on 4 March 2021.
Investor AB announced an annual dividend increase of 7,7% to 14 SEK. Last year they only distributed an interim dividend of 9 SEK and withheld paying the final 4 SEK dividend due to the impact of Covid-19. The stock currently yields 2,23% with a payout ratio of 21% based on basic EPS. The first dividend instalment of 10 SEK stock will go ex-dividend on 6 May 2021. The company has also announced a 1:4 stock split at the time of the dividend payout.
Kimberly Clark announced an annual dividend increase of 6.5% from $4.28 to $4.56. The rate is above their 5 year compound annual growth rate of 3.99%. The stock currently yields 3.45% with a payout ratio of 58.3%. This is their 48th consecutive dividend increase and the first quarterly shares will go ex-dividend on 4 March 2021.
Intel Corp announced an annual dividend increase of 5.3% from $1.32 to $1.39. The rate is slightly below their 5 year compound annual growth rate of 6.58%. The stock currently yields 2.5% with a payout ratio of 29.2%. This is their 18th consecutive dividend increase and the first quarterly shares will go ex-dividend on 5 February 2021.
Kone Oyj announced an annual dividend increase of 2.96% from €1.70 to €1.75. On top of that they also announced a special dividend of €0.50. This makes the total dividend payment €2.25 for fiscal year 2020. The stock currently yields 2.71% without the special dividend and 3.5% including it. The payout ratio without the special dividend is 97%. This is their 16th consecutive dividend increase. The shares will go ex-dividend on 3 March 2021.
Archer-Daniels-Midland announced an annual dividend increase of 2.77% from $1.44 to $1.48. The rate is below their 5 year compound annual growth rate of 5.15%. The stock currently yields 2.96% with a payout ratio of 34.5%. This is their 27th consecutive dividend increase and the first quarterly shares will go ex-dividend on 8 February 2021.
And the January Dividend Announcement winner is ….
It’s really impressive that Kone Oyj is able to increase their dividend in such a difficult market due to Covid-19. It isn’t the first time the board of directors are paying a special dividend, but it does show their confidence in their company.
I should probably do a stock analysis for this company any time soon.
Today I have shared with you 11 January dividend announcements. I typically track all dividend announcements that are of interest to me to spot any new opportunities for my portfolio.
Hence, these are not buy recommendations, because it only serves as inspiration. And it inspires me for sure, because I got renewed interest in Kimberly-Clark. I already own a small position and I might average-up in case a nice opportunity presents itself.
European Dividend Growth Investor
DISCLOSURE: I own Novartis and Kimberly Clark.
I’m not a certified financial planner/advisor nor a certified financial analyst nor an economist nor a CPA nor an accountant nor a lawyer. I’m not a finance professional through formal education. I’m a person who believes and takes pride in a sense of freedom, satisfaction, fulfillment and empowerment that I get from being financially competent and being conscious managing my personal money. The contents on this blog are for informational and entertainment purposes only and does not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my blog is appropriate for you or anyone else. By reading this blog, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information provided on this blog.