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 company has seen some solid insider buying over the past couple of years. Air Products Inc. (NYSE: APD) provides atmospheric gases, process and specialty gases, electronics and performance materials, equipment, and services worldwide.
The company produces atmospheric gases (including oxygen, nitrogen, argon and rare gases), process gases (such as hydrogen, helium, carbon dioxide, carbon monoxide and syngas) and specialty gases). It makes equipment for the production or processing of gases, comprising air separation units and non-cryogenic generators, for customers in various industries, including refining, chemical, gasification, metals, manufacturing, food and beverage, electronics, magnetic resonance imaging, energy production and refining, and metals.
It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. The company has a strategic collaboration with Baker Hughes to develop hydrogen compression systems.
Shareholders currently receive a 2.16% dividend. The company is expected to lift the dividend to $1.68 per share from $1.50.
Deutsche Bank has a Wall Street leading $340 target price for Air Products and Chemicals stock. The consensus target is $329.64 shares traded at $277.50 early Monday.
Sponsored: Tips for Investing
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