Investing

UBS Dividend Ruler Stocks Keep Raising Payouts: 4 to Buy Now

Medtronic

This company is based in Ireland after its merger with Covidien two years ago. Medtronic PLC (NYSE: MDT) is a medical devices giant, and many on Wall Street saw its historical merger with Covidien, probably one of the largest in the med tech industry, as a momentous event, leading to the creation of a unique company that combines the extensive and innovative abilities of both companies. The combined company officially has joint forces of over 85,000 employees in more than 160 countries.

Top analysts feel that the contributions from Medtronic’s three growth drivers, which they cite as therapy innovation, globalization and services/solutions, should support a 5% or greater constant currency top-line growth this year and beyond.

UBS noted this:

Medtronic delivered a 7% dividend increase – the 40th consecutive year of rising dividends for the company. Over the past four decades, Medtronic has increased its dividend at a 17% compound annual growth rate.

Investors receive a 2.2% dividend. UBS has a $95 price target. The consensus target is $92.42, and shares were last seen at $84.30.

UTC

This very diversified company with large government contract exposure is also on the UBS Bellwether list of high-conviction stock picks. United Technologies Corp. (NYSE: UTX) is an industrial that provides high-technology products and services to aerospace industries and building systems worldwide. Its segments are UTC Climate, Otis, Controls & Security, UTC Aerospace Systems and Pratt & Whitney.

Many Wall Street analysts believe the company is strategically positioned to benefit from two megatrends in the long-term: urbanization and commercial aerospace. The company received good news recently as the military and foreign buyers are set to increase purchase of the F-135 Jets. UTC’s Pratt & Whitney division, which builds the F135 engine for the military, earns a superb 22.5% profit margin on its products.

The analysts noted:

The company hiked its quarterly payout by 6% to $0.70. Chairman and CEO Greg Hayes noted: “Today’s announcement to increase our dividend reflects our ongoing commitment to remain disciplined in our capital allocation and deliver value to shareowners through our long-term growth strategy.”

Investors receive a 2.3% dividend. The $135 UBS price target compares with the consensus estimate of $127.90. The stock traded Tuesday at $118.30.

While not cheap, these stock still present among the best ideas for growth and income accounts now. In addition, there is every reason to believe they will continue raising cash dividends to shareholders on a regular and timely basis.