Tuesday, February 16, 2021

Dividend Increase #22 & #23 of 2021 - UPS & PEP

 


Wednesday, February 10th the Board of Directors of United Parcel Service Inc. (UPS) announced a quarterly dividend increase of from $ 1.01 to $ 1.02 per share that’s payable March 10, 2021 to holders of record February 22, 2021. This represents a 0.99% increase over the last quarterly dividend.

 

Commitment to the dividend is one of UPS’s core principles and a hallmark of the company’s financial strength. UPS has either maintained or increased its dividend each year since going public in 1999.

 

With current price $ 163.39 (Friday's close), this raise brings their dividend yield to 2.50%.

 

UPS is a Dividend Contenders with a 12 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 5.2, 6.8, 6.7 and 7.9 (Dividend Champions.xls)

 

 

Since I own 65 shares of UPS, this will increase my portfolio's projected annual net dividend income by $ 1.94.

 

This increase was a big disappointment, my expectation was around five percent.

 

This is the second dividend increase I've received from UPS since initiating a position in May 2019. During this period, the quarterly dividend has risen modestly from $ 0.96 to $ 1.02 or 6.25 percent.

 

This increase raises my YOC to 4.05%.

 

 

 

 

 


Thursday, February 11th the Board of Directors of PepsiCo, Inc. (PEP) announced a quarterly dividend increase of from $ 1.0225 to $ 1.075 per share, effective with the dividend expected to be paid in June 2021. This represents the Company’s 49th consecutive annual dividend per share increase.

 

With current price $ 133.87 (yesterday's close), this raise brings their dividend yield to 3.21%.

 

PEP is a Dividend Champions with a 49 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 5.0, 8.3, 7.8 and 7.8 (Dividend Champions.xls)

 

 

Since I own 100 shares of PepsiCo, this will increase my portfolio's projected annual net dividend income by $ 15.65.

 

The dividend increase was in line with my expectations.

 

This is the 7th dividend increase I've received from PEP since initiating a position in February 2014. During this period, the quarterly dividend has risen nicely from $ 0.66 to $ 1.075, or 62.9 percent.

 

This increase raises my YOC to 5.52%.

 

 

Summary of 2021 Dividend Increases / Cuts

 

 

Click here to see my portfolio holdings.

 

You can follow the development of my dividends here.

 

Full Disclosure: Long UPS, PEP

 

Thanks for stopping by!

 

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