Dividend Increase: ABT

Abbott Laboratories (ABT) is increasing its quarterly dividend by 57.1% (that's not a typo), from $0.14 to $0.22 per share, putting the company on track for its 42nd consecutive year of dividend growth (news release). ABT was removed from the Dividend Champions list after it split into two companies -- the other being AbbVie (ABBV) -- but management considers its dividend growth streak to still be intact: "This will mark the 42nd consecutive year that Abbott has increased its dividend payout and demonstrates Abbott’s continued commitment to increasing its return of cash to shareholders while investing for long-term growth." Given that I own 45 shares of ABT, my quarterly dividend increases from $6.30 to $9.90 and my yield on cost becomes 3.46%. The extra $14.40 in annual dividend income raises my forward 12-month dividend total to $2,919. Thus far this year, there have been dividend increases for 28 of the 31 stocks in my portfolio. This dividend increase is not included in that total; it actually counts as the first increase for 2014 because it takes effect with the February payment.