Dividend Increase: HCP

HCP, Inc. (HCP) is increasing its quarterly dividend by 3.8%, from $0.525 to $0.545 per share, putting the company on track for its 29th consecutive year of dividend growth (news release). Given that I own 115 shares of HCP, my quarterly dividend increases from $60.38 to $62.68 and my yield on cost becomes 5.50%. The extra $9.20 in annual dividend income raises my forward 12-month dividend total to $4,269.

Dividend Increase: CNI

Canadian National Railway (CNI) is increasing its quarterly dividend by 16.3%, from C$0.215 to C$0.25 per share, putting the company on track for its 18th consecutive year of dividend growth (news release). Given that I own 40 shares of CNI, my quarterly dividend (before tax withholding) increases from $8.60 to $10.00 and my yield on cost becomes 2.65%. The extra $4.76 in annual dividend income (after tax withholding) raises my forward 12-month dividend total to $4,259.

Dividend Increase: NVS

Novartis (NVS) is increasing its annual dividend by 6.5%, from CHF 2.30 to CHF 2.45 per share, putting the company on track for its 17th consecutive year of dividend growth in its home currency of Swiss francs (news release). Due to exchange rate fluctuations, it is difficult to determine the exact amount of the forthcoming dividend, which is usually paid in April. However, the exchange rate is better now than it was at this time last year (i.e., CHF is stronger), so the effective dividend increase in USD will likely be slightly higher than 6.5%.

Dividend Increase: ARCP

American Realty Capital Properties (ARCP) is increasing its monthly dividend by 6.4%, from $0.07833 to $0.08333 per share, in light of the pending closing of its merger with Cole Real Estate Investments (news release). Given that I own 170 shares of ARCP, my monthly dividend increases from $13.32 to $14.17 and my yield on cost becomes 7.72%. The extra $10.20 in annual dividend income raises my forward 12-month dividend total to $4,033.

Dividend Increase: NSC

Norfolk Southern (NSC) is increasing its quarterly dividend by 3.8%, from $0.52 to $0.54 per share, putting the company on track for its 13th consecutive year of dividend growth (news release). This increase comes just two quarters after the company's previous increase, announced in July 2013. Given that I own 95 shares of NSC, my quarterly dividend increases from $49.40 to $51.30 and my yield on cost becomes 3.21%. The extra $7.60 in annual dividend income raises my forward 12-month dividend total to $4,023.

Dividend Increase: O

Realty Income (O) is increasing its monthly dividend by 0.2%, from $0.1818542 to $0.1821667 per share, which represents the company's 74th dividend increase since 1994 (news release [PDF]). Effective with January's payment, this counts as a dividend increase for 2014. Given that I own 110 shares of O, my monthly dividend increases from $20.00 to $20.04 and my yield on cost becomes 5.61%. The extra $0.48 in annual dividend income keeps my forward 12-month dividend total at $3,912.

Dividend Increase: T

AT&T (T) is increasing its quarterly dividend by 2.2%, from $0.45 to $0.46 per share, putting the company on track for its 30th consecutive year of dividend growth (news release). Given that I own 55 shares of T, my quarterly dividend increases from $24.75 to $25.30 and my yield on cost becomes 6.70%. The extra $2.20 in annual dividend income raises my forward 12-month dividend total to $3,912.

Dividend Increase: VTR

Ventas (VTR) is increasing its quarterly dividend by 8.2%, from $0.67 to $0.725 per share (news release). The dividend increase is effective with the December payment and represents the second increase in 2013 (there was an 8.1% increase back in February). Given that I own 40 shares of VTR, my quarterly dividend increases from $26.80 to $29.00 and my yield on cost becomes 5.17%. The extra $8.80 in annual dividend income raises my forward 12-month dividend total to $3,861.

Dividend Increase: BDX

It turns out I did not have to wait long for the last dividend increase of 2013 to be announced:

Becton, Dickinson and Company (BDX) is increasing its quarterly dividend by 10.1%, from $0.495 to $0.545 per share, putting the company on track for its 42nd consecutive fiscal year of dividend growth (news release). Given that I own 25 shares of BDX, my quarterly dividend increases from $12.38 to $13.63 and my yield on cost becomes 3.06%. The extra $5.00 in annual dividend income raises my forward 12-month dividend total to $3,503.

In summary, 32 of the 33 stocks in my portfolio had dividend increases that took effect in 2013, with the lone holdout being INTC. The mean and median dividend increases were 11.7% and 10.1%, respectively, with a total of 18 double-digit percent increases. For comparison with last year, 24 of the 25 stocks in my portfolio (at the time) had dividend increases that took effect in 2012, with mean and median increases of 10.4% and 8.5%, with a total of 12 double-digit percent increases. Overall, I think this shows that my portfolio continues to maintain a strong rate of organic dividend growth.

Dividend Increase: HRL

Hormel Foods (HRL) is increasing its quarterly dividend by 17.6%, from $0.17 to $0.20 per share, putting the company on track for its 48th consecutive year of dividend growth (news release). Given that I own 100 shares of HRL, my quarterly dividend increases from $17.00 to $20.00 and my yield on cost becomes 2.84%. The extra $12.00 in annual dividend income raises my forward 12-month dividend total to $3,498. This is the second dividend increase among the stocks in my portfolio that takes effect in 2014. There have been dividend increases for 31 of the 33 stocks in my portfolio in 2013; an increase from BDX should be announced any day now and there will be no increase from INTC this year.

Dividend Increase and Stock Split: VFC

VF Corporation (VFC) is increasing its quarterly dividend by 20.7%, from $0.87 to $1.05 per share, putting the company on track for its 41st consecutive year of dividend growth (news release). Given that I own 10 shares of VFC, my quarterly dividend increases from $8.70 to $10.50 and my yield on cost becomes 2.90%. The extra $7.20 in annual dividend income raises my forward 12-month dividend total to $2,932. Thus far this year, there have been dividend increases for 29 of the 31 stocks in my portfolio.

The company also announced a 4-for-1 stock split that will take effect by the end of the year. Once that happens, I will own 40 shares of VFC at an adjusted cost basis of $36.25 per share.

Dividend Increase: KMI

Kinder Morgan, Inc. (KMI) is increasing its quarterly dividend by 2.5%, from $0.40 to $0.41 per share (news release). This is the fourth increase from KMI this year, resulting in an overall increase of 13.9% in 2013. Given that I own 165 shares of KMI, my quarterly dividend increases from $66.00 to $67.65 and my yield on cost becomes 4.45%. The extra $6.60 in annual dividend income raises my forward 12-month dividend total to $2,925. Thus far this year, there have been dividend increases for 28 of the 31 stocks in my portfolio.

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.

Dividend Increase: UTX

United Technologies (UTX) is increasing its quarterly dividend by 10.1%, from $0.535 to $0.589 per share, putting the company on track for its 20th consecutive year of dividend growth (news release). Given that I own 25 shares of UTX, my quarterly dividend increases from $13.38 to $14.73 and my yield on cost becomes 3.30%. The extra $5.40 in annual dividend income raises my forward 12-month dividend total to $2,904. Thus far this year, there have been dividend increases for 28 of the 31 stocks in my portfolio.

Dividend Increase: MCD

McDonald's (MCD) is increasing its quarterly dividend by 5.2%, from $0.77 to $0.81 per share, putting the company on track for its 38th consecutive year of dividend growth (news release). Given that I own 50 shares of MCD, my quarterly dividend increases from $38.50 to $40.50 and my yield on cost becomes 3.63%. The extra $8.00 in annual dividend income raises my forward 12-month dividend total to $2,776. Thus far this year, there have been dividend increases for 25 of the 29 stocks in my portfolio.

Dividend Increase: MSFT

Microsoft (MSFT) is increasing its quarterly dividend by 21.7%, from $0.23 to $0.28 per share, putting the company on track for its 11th consecutive year of dividend growth (news release). The company also announced a new $40 billion share repurchase program. Given that I own 115 shares of MSFT, my quarterly dividend increases from $26.45 to $32.20 and my yield on cost becomes 4.14%. The extra $23.00 in annual dividend income raises my forward 12-month dividend total to $2,768. Thus far this year, there have been dividend increases for 24 of the 29 stocks in my portfolio.

Dividend Increase: PM

Philip Morris International (PM) is increasing its quarterly dividend by 10.6%, from $0.85 to $0.94 per share, putting the company on track for its 6th consecutive year of dividend growth (news release). Given that I own 50 shares of PM, my quarterly dividend increases from $42.50 to $47.00 and my yield on cost becomes 5.58%. The extra $18.00 in annual dividend income raises my forward 12-month dividend total to $2,745. Thus far this year, there have been dividend increases for 23 of the 29 stocks in my portfolio.

Dividend Increase: ITW

Illinois Tool Works (ITW) is increasing its quarterly dividend by 10.5%, from $0.38 to $0.42 per share, putting the company on track for its 39th consecutive year of dividend growth (news release). Given that I own 40 shares of ITW, my quarterly dividend increases from $15.20 to $16.80 and my yield on cost becomes 3.93%. The extra $6.40 in annual dividend income raises my forward 12-month dividend total to $2,514. Thus far this year, there have been dividend increases for 21 of the 28 stocks in my portfolio.

Dividend Increase: UNP

Union Pacific (UNP) is increasing its quarterly dividend by 14.5%, from $0.69 to $0.79 per share (news release). A previous increase was announced in November 2012 but was effective with the January 2013 payment, so this is the second increase that takes effect in 2013. Given that I own 10 shares of UNP, my quarterly dividend increases from $6.90 to $7.90 and my yield on cost becomes 2.99%. The extra $4.00 in annual dividend income raises my forward 12-month dividend total to $2,507. Thus far this year, there have been dividend increases for 20 of the 28 stocks in my portfolio. (UNP had already been included in the total due to its previous increase.)

Dividend Increase: NSC

Norfolk Southern (NSC) is increasing its quarterly dividend by 4.0%, from $0.50 to $0.52 per share, putting the company on track for its 12th consecutive year of dividend growth (news release). Given that I own 95 shares of NSC, my quarterly dividend increases from $47.50 to $49.40 and my yield on cost becomes 3.09%. The extra $7.60 in annual dividend income raises my forward 12-month dividend total to $2,439. Thus far this year, there have been dividend increases for 20 of the 28 stocks in my portfolio.