Investing

2 Sizzling Tech Stocks Highlight Buy-Rated Stocks With Rising Dividends

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 that help to provide an income stream. What this equates to is total return, which is one of the most powerful investment strategies going.

We always like to remind our readers about the impact total return can have 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 the 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%: 10% for the increase in stock price and 3% for the dividends paid.

Three top companies 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 at some of the top firms on Wall Street. While it’s always possible that not all three raise their dividends, top analysts expect them to, and generally the data is based on past increases in the firm’s dividend payouts. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Altria

This maker of tobacco products offers value investors a great entry point now and was hit recently as cigarette sales have slowed. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro.

Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer. In March 2008, it spun off its international cigarette business to shareholders. In December 2018, the company acquired 35% of Juul Labs, and it has purchased a 45% stake in cannabis company Cronus for $1.8 billion.

The company is also rolling out its own heated and vapor products, such as Marlboro HeatSticks and IQOS, both of which are slowly expanding across the country.

Altria has increased its dividend for 50 consecutive years. Shareholders currently receive a 7.11% dividend. The dividend is expected to rise to $0.88 per share from $0.66.

BofA Securities has a $58 target price for Altria stock, and the consensus target is $54.68. Monday morning, shares were trading at $48.85.

Intuit

This company hits all the metrics in the technology sector for accounting needs. Intuit Inc. (NASDAQ: INTU) provides financial management and compliance products and services for consumers, small businesses, self-employed and accounting professionals in the United States and internationally.

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