Sat. Oct 16th, 2021


The earnings season for the second quarter begins with an S&P 500 index close to all-time highs and high earnings expectations. JP Morgan, Citigroup and Goldman made strong gains last week. Next week, the first Dividend Aristocrats, such as PPG, Johnson & Johnson and IBM, will report on their second-quarter results. Stock prices could jump or fall depending on the gap between earnings expectations and actual figures reported. Let us look in more detail at the expectations of the first three dividend aristocrats. In addition, we will provide a list of “reporting dates” for the next two weeks.

Dividend aristocrats earnings estimates

On Monday, PPG Industries will announce its results after the commercialization. Last quarter’s earnings were already pretty good and Wall Street is optimistic about this quarter, see the data below.

Earnings in recent quarters
Date of announcement: 15/04/2021
Actual EPS: $ 1.88
EPS surprise: Earned $ 0.33
Real revenue: $ 3.88 million
Surprise income:Beaten by $ 201.97 million

Earnings for the next quarter
Date of announcement: 19/07/2021 (after the market)
EPS estimate: $ 2.19
Estimated revenue: $ 4.32 million
EPS Up reviews (last 90 days): 13
Low EPS reviews (last 90 days): none

On the same day, IBM will also report on Q2-21 results. Given downward revisions to EPS, Wall Street might be a little worried.

Earnings in recent quarters
Date of announcement: 19/04/2021
Actual EPS: $ 1.77
EPS surprise: Earned $ 0.12
Real revenue: $ 17.73 million
Surprise income: Beaten by $ 431.53 million

Earnings for the next quarter
Date of announcement: 19/07/2021
EPS estimate: $ 2.29
Estimated revenue: $ 18.30 million
EPS Up Reviews (last 90 days): 2
EPS download reviews (last 90 days): 9

On Wednesday, Johnson & Johnson (JNJ) will report its results before the market. Let’s look at the last quarter and expectations for this quarter:

Earnings in recent quarters
Date of announcement: 20/04/2021
Actual EPS: $ 2.59
EPS surprise: Sale for $ 0.24
Real revenue: $ 22.32 million
Surprise income: Beaten by $ 308.14 million

Earnings for the next quarter
Date of announcement: 21/07/2021 (previous marketing)
EPS estimate: $ 2.29
Estimated revenue: $ 22.56 million
EPS Up Reviews (last 90 days): 4
Low EPS reviews (last 90 days): 10

Dividend Aristocrats announces upcoming earnings

Don’t be surprised when estimates are exceeded again. Historically, this has been a trend when we look at the difference between end-of-quarter estimates and actual estimates reported.

  • 2Q2020 12.6%
  • 3Q2020 15.5%
  • 4Q2020 13.2%
  • 1T-2121 28.7%

Source: FactSet

The following are the most important gains for various dividend aristocrats in the next two weeks:

Other sources of dividend investment ideas

The list of dividend aristocrats is not the only way to quickly find companies that regularly pay rising dividends.

  • The list of dividend kings is even more exclusive than dividend aristocrats. It is made up of less than 20 companies with more than 50 years of consecutive dividend increases.
  • MoneyInvestExpert’s defensive aristocrats are a top-10 selection based on the performance of dividend aristocrats to outperform the market in the long run.
  • Portfolio lists like the Berkshire Hathaway portfolio or the Bill Gates portfolio can be a source.
  • For European investors, there is also the list of European dividend aristocrats.
  • Dividend champions are not necessarily members of the S&P 500 index, they have increased their dividend for 25 or more consecutive years.
  • Over 100 years of dividend, the list of stocks that pay more than 100 years of dividend can be an inspirational list.

Alongside selecting the right dividend stocks, the important principles for successful long-term investing are Discipline, Diversification, Defensive, and indeed Dividend. Read more in our free ebook.

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