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Income Investing

May 2020 US Dividend Increases

Companies that still grew their dividends despite the worst economy since the Great Depression.

Corporate executives have an ability to send ‘signals’ to the market about the health of their organization. One such signal is dividend policy.

In particular, if a company increases its dividend – particularly in a bad economic environment – it signals management’s confidence in the company’s future prospects. It also indicates the company has the cash to continue paying its dividend.

If I’m going to invest in a company right now, I want to know that the company’s executives are confident. While I wouldn’t rely on this single factor to make an investing decision, I believe it provides good corroborating evidence for an investing thesis that might already exist.

May of 2020 was one of the worst months ever for the US economy. Yet there are a handful of large cap US companies that are increasing their dividends, which I have listed below:

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May Dividend Increases (US Companies with Market Cap >$10b)

CompanyTickerNew Div% RaiseYield
CloroxCLX$1.114.72%2.20%
MedtronicMDT$0.587.41%2.37%
ChubbCB$0.784.00%2.97%
NetEaseNTES$1.1613.73%1.17%
American TowerAMT$1.101.85%1.91%
Northrop GrummanNOC$1.459.85%1.77%
Koninklijke PhilipsPHG$0.962.74%2.10%
Cardinal HealthCAH$0.491.02%3.69%
Franco NevadaFNV$0.264.00%0.70%
Microchip TechnologyMCHP$0.370.14%1.72%
KKR & CoKKR$0.148.00%2.00%
Pembina PipelinePBA$0.151.89%7.93%
FactSet Research SystemsFDS$0.776.94%1.20%
Ameriprise FinancialAMP$1.047.22%3.87%
TE ConnectivityTEL$0.484.35%2.76%
Thomson ReutersTRI$0.3832.40%2.19%
Expeditors Intl of WashingtonEXPD$0.524.00%1.40%
Baxter IntlBAX$0.2511.36%1.11%
PepsiCoPEP$1.027.07%3.11%

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