After years of a low interest rate environment, many investors have turned to equities not only for the growth potential but also for solid and dependable dividends, which help to provide an income stream. What this equates to is total return, which is one of the most powerful investment strategies going.
We like to remind our readers about the impact that total return has on portfolios, because it is one of the best ways to help improve the chances for overall investing success. Again, total return is the combined increase in a stock’s value plus dividends. For instance, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%: a 10% for the increase in stock price and 3% for the dividends paid.
Five top large cap companies that are Wall Street favorites are expected to raise their dividends this week, so we screened our 24/7 Wall St. research universe and found that all are rated Buy by some top analysts. While it is always possible that not all of them do indeed raise their dividends, analysts expect them to, and the data is based generally on past increases in the firm’s dividend payouts.
It is important to remember, though, that no single analyst report should be used in making a buying or selling decision.
This may be an off-the-radar idea for some, but the shares have tremendous upside potential. Apogee Inc. (NASDAQ: APOG) designs and develops glass and metal products and services in the United States, Canada and Brazil.
Its Architectural Framing Systems segment designs, engineers, fabricates and finishes the aluminum frames used in customized aluminum and glass window, curtainwall, storefront and entrance systems, such as the outside skin and entrances of commercial, institutional and multifamily residential buildings. The Architectural Glass segment fabricates coated and high-performance glass used in customized window and wall systems, including the outside skin of commercial, institutional and multifamily residential buildings.
The Architectural Services segment offers full-service installation of the walls of glass, windows and other curtainwall products making up the outside skin of commercial and institutional buildings. The LSO segment manufactures value-added glass and acrylic products for framing and display applications.
The company’s products and services are primarily used in commercial buildings, such as office buildings, hotels and retail centers; and institutional buildings comprising education facilities, health care facilities and government buildings; as well as multi-family residential buildings.
Investors currently receive a dividend of 1.65%. The company is expected to raise the dividend to $0.215 per share from $0.20.
Craig Hallum has a $54 target price, and the consensus price objective is lower at $47.20. The stock traded early in Monday’s trading at $47.15 per share.
The is another perhaps less well-known stock that has delivered solid results for shareholders. Jacobs Engineering Group Inc. (NYSE: J) provides consulting, technical, scientific and project delivery services for the government and private sectors in the United States, Europe, Canada, Asia, Australia, South America, Mexico, the Middle East and elsewhere.
The Critical Mission Solutions segment provides cybersecurity, data analytics, systems and software application integration and consulting, enterprise and mission IT, engineering and design, nuclear, enterprise level operations and maintenance, and other technical consulting solutions.
The People & Places Solutions segment offers data analytics, artificial intelligence and automation, software development, digitally driven consulting, planning and architecture, program management and other technical consulting solutions. The company is also involved in the management and execution of wind-tunnel design-build projects and design-build for water and construction management.
Investors currently receive a dividend of 0.60%. The dividend is expected to rise to $0.23 per share from $0.21
The Barclays price target of $160 is less than the $161.69 consensus target. The stock traded on Monday at $134.60.
This is an ideal stock for growth and income investors looking for a safer, inflation-busting idea for 2022. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income. It is structured as a real estate investment trust (REIT), and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants.
To date, the company has declared 604 consecutive common stock monthly dividends throughout its 51-year operating history and increased the dividend 108 times since its public listing in 1994, garnering it a spot on the S&P 500 Dividend Aristocrats index.
Investors now receive a yield of 4.14%. The $0.246 per share dividend is expected to increase to $0.247.
The $92 Goldman Sachs price target price is well above the $78.71 consensus target and the recent share price of $70.85.
This is a hedge fund favorite that has pulled back recently and is offering an excellent entry point. Shutterstock, Inc. (NASDAQ: SSTK) a technology company, provides content, and tools and services in North America, Europe, and internationally.
It offers image services consisting of photographs, vectors, and illustrations, which is used in visual communications, such as Websites, digital and print marketing materials, corporate communications, books, publications, and others; footage services, including video clips, filmed by industry experts and cinema grade video effects, and HD and 4K formats that are integrated into Websites, social media, marketing campaigns, and cinematic productions; and music services comprising music tracks and sound effects, which are used to complement digital imagery.
The company provides its services under the Shutterstock, Bigstock, Offset, Shutterstock Select, Shutterstock Custom, Shutterstock Editorial, Offset, PremiumBeat brand names, as well as Application programming interface, and Editor and Editor Pro tools to enhance workflow and project management needs, and search capabilities.
Investors are currently paid a dividend of 1.83%. It is expected the company will raise the dividend to $0.52 per share from $0.48.
Needham has a Buy rating on the shares with a $145 price objective. The consensus target across Wall Street is set at $134.75/ The final trade on Friday came in at $98.80.
Those looking to own a jewelry company have just the idea with this top company. Signet Jewelers Limited (NYSE: SIG) engages in the retail sale of diamond jewelry, watches, and other products. It operates through three segments: North America, International, and Other. The North America segment operates jewelry stores in malls and off-mall locations primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, Zales Jewelers, Zales Outlet, Piercing Pagoda, and Peoples Jewelers, as well as operates online through JamesAllen.com.
The International segment operates stores in shopping malls and off-mall locations primarily under the H.Samuel and Ernest Jones brands. The Other segment is involved in the purchase and conversion of rough diamonds to polished stones, as well as the provision of diamond polishing services. As of January 30, 2021, it operated 2,833 stores and kiosks, which include 2,381 locations in the United States and 100 locations in Canada; and 352 stores in the United Kingdom, the Republic of Ireland, and the Channel Islands.
Investors are currently receiving a dividend of 0.79%. The company is expected to raise the dividend to $0.20 per share from $0.18.
UBS has a Buy rating on the jewelry retailing giant and a $140 [+price target. The consensus target was not available. The stock closed Friday at $90.89 down close to 4%.
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These five top companies are expected to lift the dividends they pay to shareholders, and their stocks are rated Buy across Wall Street. Not only is increasing dividends and returning capital to investors important, but it also shows that the company is doing well and has the earnings and cash flow strength to increase the payouts.
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