That is the newest in my collection of articles the place I present predictions of annual dividend will increase for long-term dividend progress corporations. On the finish of October, I supplied predictions for 13 dividend progress corporations which have traditionally introduced annual payout will increase within the first half of November. On this article I will have a look at one other 13 dividend progress corporations that I count on will announce their annual dividend will increase within the second half of November.

Listed below are the outcomes from my predictions from the primary half of November (as at all times, the unique predictions can be found right here), adopted by my predictions for the dividend will increase that I am anticipating to be introduced within the second half of November. I’ve modified how I am presenting these outcomes to a desk. Suggestions is welcome – let me know should you discover this simpler to learn.

(All yields are based mostly on inventory costs on the market shut on Friday, November tenth.)

Outcomes for Dividend Enhance Bulletins from the First Half of November

Firm	# Years	Prediction % / Annual Price	Precise % / Annual Price	Ahead Yield
Computerized Knowledge Processing, Inc. (ADP)	49	13.0% – 16.0% $5.65 – $5.80	12.0% $5.60	2.45%
Assurant, Inc. (AIZ)	20	4.3% – 7.1% $2.92 – $3.00	2.9% $2.88	1.77%
Atmos Vitality Company (ATO)	40	6.8% – 8.1% $3.16 – $3.20	8.8% $3.22	2.89%
Becton, Dickinson and Firm (BDX)	52	4.9% – 6.6% $3.82 – $3.88	4.4% $3.80	1.62%
Cencora, Inc. (COR)	20	4.1% – 7.2% $2.02 – $2.08	5.2% $2.04	1.03%
Emerson Electrical Co. (EMR)	67	1.0% – 1.9% $2.10 – $2.12	1.0% $2.10	2.43%
Evergy, Inc. (EVRG)	21	3.7% – 5.3% $2.54 – $2.58	4.9% $2.57	5.20%
Huntington Ingalls Industries, Inc. (HII)	12	4.0% – 5.2% $5.16 – $5.22	4.8% $5.20	2.26%
HP Inc. (HPQ)	15	2.9% – 4.8% $1.08 – $1.10	5.0% $1.1024	3.99%
Lancaster Colony Company (LANC)	62	5.9% – 8.2% $3.60 – $3.68	5.9% $3.60	2.15%
Nelnet, Inc. (NNI)	10	5.8% – 7.7% $1.10 – $1.12	7.7% $1.12	1.31%
Roper Applied sciences, Inc. (ROP)	31	13.6% – 15.8% $3.10 – $3.16	9.9% $3.00	0.58%
Snap-on Integrated (SNA)	15	13.5% – 14.8% $7.36 – $7.44	14.8% $7.44	2.76%

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Predictions for Dividend Will increase for the Second Half of November

There are 13 long-term dividend progress corporations I count on to announce their annual will increase in October. First, listed here are my predictions for 2 featured corporations:

Merck & Co., Inc. (MRK) – 13 years of dividend progress

Broadly held Merck is likely one of the best-known drug producers on this planet. The corporate operates two enterprise segments: Pharmaceutical and Animal Well being. Two of the preferred medication which are popping out of the Pharmaceutical phase and that are powering firm gross sales are the most cancers drug KEYTRUDA and HPV vaccine GARDASIL. Gross sales for each of those medication jumped greater than 20% in 2022 and contributed to Merck’s 22% soar in gross sales from 2021 to 2022 and which, in flip, drove adjusted EPS progress to 40% final yr.

Along with organically growing new medication, Merck is regularly buying corporations with desired drug pipelines and partnering with different corporations to collaborate on drug improvement. Whereas this will likely appear apparent, I carry it up as a result of Merck is guiding 2023 EPS to be dramatically decrease than 2022’s EPS. Between acquisitions of two corporations and one-time upfront funds to 2 different corporations, 2023 EPS can be down 70% year-over-year.

Whatever the drop in EPS, Merck’s enterprise continues to broaden and the corporate will proceed its dividend progress report for the foreseeable future. Though Merck’s subsequent enhance will not match its 5-year progress price of 8%, traders can count on a rise within the 5% vary, just like final yr’s.

Prediction: 4.1 – 6.2% enhance to $3.04 – $3.10

Predicted Ahead Yield: 3.00 – 3.06%

NIKE, Inc. (NKE) – 22 years

I barely have to elucidate what Nike does – the corporate has promoted its model so successfully that the “swoosh” speaks for itself. Nike is understood worldwide because the premier athletic sportswear firm. Along with the Nike model, the corporate additionally owns the Jordan Model of athletic sneakers and has a fully-owned subsidiary, Converse. The corporate not solely licenses its manufacturers but in addition operates Nike retail shops and sells via its web site through its NIKE Direct operations.

The corporate has constructed a superb dividend progress historical past. During the last decade, Nike has compounded its dividend at almost 13%, greater than tripling its payout over that point. And final yr’s 11.5% enhance was proper in keeping with the corporate’s 5-year compounded progress price of 11.2%.

The corporate additionally invests its free money move in share buybacks and has retired 60 million shares within the final 5 quarters.

Fiscal 2023, which ended Could thirty first, introduced some challenges for Nike. Whereas revenues had been up 10%, powered by 14% progress within the firm’s wholesaling and direct-to-consumer companies, promoting and different administrative bills rose by 11%, greater than offsetting the income positive aspects. Per share earnings fell 15%, in a uncommon setback for the corporate. And monetary 2024 appears to be extra of the identical – though revenues had been up 2% year-over-year within the first quarter, advertising and marketing and different promoting prices rose by 5%, limiting EPS progress to 1%.

Will the corporate reward traders with one other 10%+ enhance this yr? Nike has some flexibility, and will scale back the quantity of shares it retires to keep up the dividend progress price. The corporate’s earnings final fell in 2020 and on the time Nike continued to spice up its payout by double-digits. I believe that is more likely to occur once more. Buyers ought to see a rise like final yr’s, within the 10 – 12% vary.

Prediction: 10.3 – 13.2% enhance to $1.50 – $1.54

Predicted Ahead Yield: 1.41 – 1.45%

Listed below are my predictions for the 11 different corporations which ought to announce annual will increase within the second half of November:

Firm	# Years	Trade	Prediction (%)	New Annual Price
Agilent Applied sciences, Inc. (A)	12	Healthcare – Diagnostics & Analysis	11.1% – 13.3%	$1.00 – $1.02
The healthcare diagnostics firm elevated its payout final yr by 7%, effectively beneath its 5-year common progress price of 16%. Will Agilent return to its common dividend progress price this yr? Properly, gross sales had been up 8% in 2022, which drove EPS progress of 20%. However the firm is anticipating EPS progress to sluggish to 4% in 2023. I count on that the corporate will return to 10%+ dividend progress, nevertheless it will not be 16% – simply a rise within the low teenagers. Predicted Ahead Yield: 0.92 – 0.94%
American Fairness Funding Life Holding Firm (AEL)	19	Monetary – Insurance coverage	5.6% – 11.1%	$0.38 – $0.40
American Fairness supplies annuities and different retirement merchandise to its clients. After falling 6% in 2022, adjusted EPS has greater than doubled year-over-year within the first 9 months of 2023. Usually, I might count on an organization that’s doubling earnings to announce a really good dividend enhance however American Fairness has boosted its dividend by 2 cents in every of the final 9 years. I count on the corporate will proceed the sample, with the prospect of a barely bigger enhance. Predicted Ahead Yield: 0.71 – 0.74%
Brown-Forman Company (BF.B)	39	Drinks – Wineries & Distilleries	4.0% – 7.0%	$0.85 – $0.882
Distilled spirits firm Brown-Forman owns many manufacturers, together with the well-known Jack Daniels whiskey. Though the corporate is anticipating gross sales and working earnings progress within the mid-single digits in fiscal 2024 – which began on Could 1st – EPS fell by 6% in 2023. So, though Brown-Forman’s dividend enhance final yr was greater than 9%, traders will see a lift nearer to the corporate’s long-term progress price within the mid-single digits. Predicted Ahead Yield: 1.50 – 1.55%
CubeSmart (CUBE)	14	REIT – Industrial	13.3% – 16.3%	$2.22 – $2.28
The self-storage REIT continues to broaden via acquisitions and new developments. The corporate additionally runs a property administration service that it supplies to 3rd events, which can be taking up new clients. CubeSmart has usually boosted its payout by double-digit percentages and, though the corporate is anticipating progress to sluggish to six% in 2023, final yr the corporate posted 20% progress. This can arrange traders for one more enhance within the mid-teens. Predicted Ahead Yield: 6.09 – 6.26%
Hormel Meals Company (HRL)	57	Client – Packaged Meals	3.6% – 5.4%	$1.14 – $1.16
Meals firm Hormel has finished a superb job rising its gross sales and earnings since 2020, however is anticipating a slowdown within the 4th quarter this yr which is able to trigger adjusted EPS to fall 10% from 2022. Dividend progress had been slowing, falling to six% final yr from a mean of 13% over the past decade. The falling earnings will trigger dividend progress to sluggish even additional. Predicted Ahead Yield: 3.51 – 3.57%
Matthews Worldwide Company (MATW)	28	Industrials – Conglomerates	2.2% – 4.3%	$0.94 – $0.96
Matthews Worldwide supplies memorialization merchandise and branding merchandise. The corporate took an earnings hit in 2022 as a result of prices of changing its staff away from its pension plan, together with ending the writing down of property as a result of Russia-Ukraine conflict. Free money move is coming again in 2023 and is predicted to return to 2021 ranges. Given this, traders can count on one other yr – the corporate’s sixth consecutive one – of an annual enhance of two or 4 cents. Predicted Ahead Yield: 2.52 – 2.57%
McCormick & Firm, Integrated (MKC)	24	Client – Packaged Meals	2.6% – 6.4%	$1.60 – $1.66
Taste and spices firm McCormick went via some rocky occasions final yr, as points with its provide chains, Covid in China, and the Russia – Ukraine conflict resulted in a 17% drop in EPS. These points appear to be previously and the corporate is anticipating EPS to develop 5% in 2023. Whereas this would possibly not be sufficient to return the corporate again to the standard dividend progress price of 9%, it must be sufficient for one more 5% enhance like final yr. Predicted Ahead Yield: 2.46 – 2.56%
Motorola Options, Inc. (MSI)	12	Know-how – Communications Tools	11.4% – 13.6%	$3.92 – $4.00
Motorola Options supplies assist for radio communications, video, and command middle improvement for safety purposes. The corporate grew EPS by 13% in 2022 and is one other 12% – 13% progress in 2023. This EPS progress helps Motorola Options’ compounded dividend progress price of 13%; traders can search for one other yr of dividend progress within the low-double digit percentages. Predicted Ahead Yield: 1.26 – 1.29%
Royal Gold, Inc. (RGLD)	22	Supplies – Gold	2.7% – 5.3%	$1.54 – $1.58
With decrease valuable metals manufacturing out of Royal Gold’s properties, earnings are falling. EPS was down 13% in 2022 and one other 4% within the first 9 months of 2023. So, regardless of a pleasant 7% enhance final yr, traders possible will not see something larger than a 5% hike this yr. Predicted Ahead Yield: 1.44 – 1.47%
Spire Inc. (SR)	20	Utilities – Fuel	4.2% – 5.6%	$3.00 – $3.04
Spire is a pure gasoline firm serving clients in Alabama, Mississippi and Missouri. The corporate has a constant report of 5 – 6% dividend progress. In actual fact, it maintained this sample within the face of a 20% drop in EPS final yr. With earnings anticipated to rebound by 6% when the corporate reviews full yr financials in mid-November, traders can count on the sample to proceed. Predicted Ahead Yield: 5.27 – 5.34%
The York Water Firm (YORW)	26	Utilities – Water	3.7% – 4.9%	$0.84 – $0.85
The Pennsylvania-based water utility received approval for a price enhance earlier this yr, which led to an 18% soar in EPS for the primary 9 months of 2023, on high of a 7.7% enhance in 2022. Share depend has elevated, nevertheless, and the corporate has an honest debt load, which means that York Water is more likely to maintain to its longer-term sample of 4% dividend progress. Predicted Ahead Yield: 2.30 – 2.33%

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Abstract

Many corporations use November to announce their annual dividend will increase and this yr isn’t any exception. The primary half of the month noticed some good will increase from a wide range of corporations, together with double-digit boosts from ADP and Snap-on Instruments. Roper Applied sciences simply missed the ten% threshold with a 9.9% enhance to finish its third decade of dividend progress. Utility Atmos Vitality got here in with one other yr of 8 – 9% progress. And there have been three dividend kings – corporations with at the very least half a century of dividend progress on the listing for early November: meals firm Lancaster Colony started its seventh decade of dividend progress with a 6% enhance, healthcare firm Becton, Dickinson prolonged its dividend progress historical past to 52 years with a 4.4% enhance, and Emerson prolonged its streak to 67 years with a small 1% enhance.

The second half of November brings one other 13 corporations that can announce will increase, most of them earlier than Thanksgiving. Double-digit boosts ought to come from sportswear firm Nike, communications firm Motorola Options, REIT CubeSmart, and healthcare diagnostics firm Agilent. Dividend king Hormel Meals ought to lengthen its streak to 58 years with a mid-single digit enhance, whereas utilities York Water and Spire Vitality are available in with mid-single digit will increase.

As we method the vacation season, I need to want all my American readers a contented and pleasing Thanksgiving!