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Dividend Growth Stocks Set to Raise Their Dividends in June

Famous Dividend Growth Stocks

Many companies are bestowing savings from lower tax rates onto employees and shareholders this year. News stories abound of employees receiving wage increases and bonuses, while shareholders benefit from bigger-than-normal share repurchase announcements and dividend hikes. Here are a few famous companies with dividend growth stocks that increase their dividend payouts annually in June:

Dividend Growth Stock #1: FedEx (FDX – yield 0.8%)

FedEx raises its dividend annually during the second week in June. The dividend yield isn’t big, but the dividend growth rate is superb! FedEx increased its dividend payout by 25% to 60% in each of the last four years. The current quarterly payout is $0.50 per share.

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Rising dividends are just one of the great reasons to own FDX, which is an undervalued large-cap growth stock. Earnings per share (EPS) grew 20.7% and 13.9% in 2016 and 2017 (May year-end), and are expected to grow 22.0% and 16.0% in 2018 and 2019. Wow! The 2018 price/earnings ratio (P/E) is moderate at just 16.6.

FDX has been loosely trading between 230 and 255 since the stock market fell in early February. There’s upside resistance near 275, where FDX might rest before gathering steam for its next run-up.

FDX Dividend Growth Stock

Dividend Growth Stock #2: Lowe’s (LOW – yield 1.9%)

Watch for Lowe’s Companies to announce their annual dividend increase somewhere between Memorial Day weekend and the first week in June. Lowe’s increased its dividend payout by 17% to 28% in each of the last four years. The current quarterly payout is $0.41 per share.

With home prices rising, the economy booming and home resales in short supply, many Americans are choosing to stay put and renovate their current homes. As a result, Lowe’s is expected to see profits grow 24.6% and 12.2% in 2019 and 2020 (January year-end). The 2019 P/E is just 15.4, indicating that the stock is undervalued.

LOW fell throughout February, then settled into a sideways trading pattern between 83 and 88. Buy LOW now before the rebound begins. There’s 27% upside as LOW eventually climbs back to its January high of 107.

LOW Dividend Growth Stock

Dividend Growth Stock #3: UnitedHealth Group (UNH – yield 1.3%)

UnitedHealth Group raises its dividend during the first week in June. The company increased its dividend payout by 20% to 34% in each of the last four years. The current quarterly payout is $0.75 per share. UnitedHealth Group is on a multi-year growth spurt, with EPS expected to grow 25.4% and 13.1% in 2018 and 2019. The 2018 P/E is 18.6.

UNH is well on its way to a full recovery from this year’s stock market correction. The stock will likely rest when it retraces its January high of 247, and then continue upward this year.

UNH Dividend Growth Stock


Crista Huff is the lead analyst of Cabot Undervalued Stocks Advisor, where she combines a strict fundamental methodology with technical analysis, to identify growth and value stocks whose charts are turning bullish.