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 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.
Four 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 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 is a backdoor way for more conservative investors to have a technology play in their portfolio. CDW Corp. (NASDAQ: CDW) provides integrated information technology (IT) solutions to business, government, education, and health care customers in the United States, the United Kingdom and Canada.
The company offers discrete hardware and software products, as well as integrated IT solutions, including on-premise, hybrid and cloud capabilities across data center and networking, digital workspace, security and virtualization. Its hardware products comprise notebooks/mobile devices, network communications, desktop computers, video monitors, enterprise and data storage and other hardware. Its software products include application suites, security, virtualization, operating systems and network management.
CDW also provides field services, managed services, warranties, configuration services, partner services and telecom services.
Shareholders currently receive a 0.85% yield. The company is expected to raise the $0.40 per share dividend to $0.42.
Credit Suisse has a $210 price target on CDW stock, while the consensus target is $204.44. The stock was trading on Tuesday near $187 a share.
With store traffic returning to normal, and the holidays coming up, this long-time fragrance producer has some outstanding upside potential. Estee Lauder Companies Inc. (NYSE: EL) is one of the world’s leading manufacturers and marketers of prestige skincare, makeup, fragrance and hair care products.
The company’s products are sold in over 130 countries. Brands include Estee Lauder, Clinique, MAC, La Mer, Bobbi Brown, Jo Malone, Origins, Bumble & Bumble, Smashbox, Tom Ford, Aveda, Too Faced and Aramis.
Shareholders currently receive a 0.65% yield. The dividend is expected to go from $0.53 per share to $0.58.
Morgan Stanley’s $365 price target is in line with the $364.88 consensus target. Estee Lauder stock traded near $316 on Tuesday.