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.
The need for the electronics and gear to set up a “work from home” office has been a huge tailwind for this leading retailer. Best Buy Inc. (NYSE: BBY) is the top specialty retailer of consumer electronics. The company operates about 1,000 stores in the United States, primarily big-box Best Buy locations, and over 200 stores in Canada and Mexico.
The company also offers a variety of high-margin services, through its Geek Squad and Magnolia home theater channels, as well as connected health and emergency services for seniors through its purchase of GreatCall.
Shareholders currently receive a 2.92% dividend. The company is expected to lift the $0.70 per share dividend to $0.80. BofA Securities has a Buy rating and a $175 price target on Best Buy stock. The consensus target is just $124.10, and shares traded early Monday at $95.15.
This stock has been on fire, so investors need to be careful when looking for an entry point. Domino’s Pizza Inc. (NYSE: DPZ) is the number one pizza delivery company in the world, with roughly 13,000 stores in 50 states and more than 70 countries. The company’s system is more than 97% franchised, and 59% of the stores are located internationally.
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