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 like to remind 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%. That is, 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 at some of the top firms on Wall Street. While it is always possible that not all of them do indeed raise their dividends, top analysts expect them to. 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.
Insurance companies tend to do well regardless of the economy, and this sector giant may be an outstanding pick for investors. It was one of the analyst’s top picks for 2021. Allstate Corp. (NYSE: ALL) is the largest publicly traded personal lines insurance company, with about 12% of the personal lines market (one in eight households).
Allstate is primarily a direct writer. Besides a full array of personal lines P/C products (preferred, standard and nonstandard auto insurance, and homeowners’ insurance), the company also offers life insurance and annuity products.
Shareholders currently receive a 2.57% dividend. The insurance giant is expected to raise the dividend nicely, to $0.92 per share from $0.81. The recent UBS upgrade of Allstate stock included a target price hike to $149 from $126. The consensus target is $131.92. The shares traded early Tuesday at $125.10.
While off-the-radar for some investors, this top stock is a solid value idea for the rest of 2022 and beyond. Danaher Corp. (NYSE: DHR) designs, manufactures and markets professional, medical, industrial and commercial products and services worldwide. The company operates through three segments.
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Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.