Tuesday, February 16, 2021

Three recent dividend increases (TROW, CSCO and BBL)

A few days ago I wrote about four recent dividend increases. The pace of raises continues with a few new raises! Of course I am happy with these raises, especially after a somewhat sobering 2020 in terms of dividend growth. So let's take a look at the raises.

T. Rowe Price

On February 9 T. Rowe Price (TROW) declared a $1.08/share quarterly dividend, which is a whopping 20% increase from its prior dividend of $0.90. Last year TROW increased its dividend by a massive 18% as well. I received five dividend raises since my purchase of TROW back in 2016. The quarterly dividend payment has exactly doubled since that time! My return on investment is currently around 20% per annum so I am not complaining.


On the same day Cisco (CSCO) declared a $0.37/share quarterly dividend, which is modest 2.8% increase from its prior dividend of $0.36. I recently purchased shares in Cisco its my first dividend raise. It's not big raise but its one nonetheless. We'll see what happens next year!


Today BHP released their financial results for the half-year ended 31 December 2020. The results definitely looked solid with increasing earnings and margins, higher cashflow and shareholder returns and lower debt. They declared a dividend of $1,01 per share (which is $2,02 for the BBL shares). This is an increase of more than 50% compared to its March payment last year.


Together these raises increased my forward annual dividend income by roughly €30. Based on my portfolio's dividend yield of 3,9% I have to invest € 770 to get this kind of dividend income, but now I get it for free! Rock on!

No comments:

Post a Comment