After years of a low interest rate environment, which now is trending higher, many investors have turned to equities, not only for the growth potential but also for the 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. While interest rates are rising, these companies still make sense for investors looking for solid growth and income potential.
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%. That is, 10% for the increase in stock price and 3% for the dividends paid.
Five large-cap companies that are Wall Street favorites are expected to raise their dividends this week. 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 five do raise their dividends, top analysts expect them to, generally 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.
This company will likely hold up very well in a recession, and it posted stellar earnings last month. Ashland Global Holdings Inc. (NYSE: ASH) provides additives and specialty ingredients worldwide. It offers its products to customers in a range of consumer and industrial markets, such as architectural coatings, construction, energy, food and beverage, nutraceuticals, personal care and pharmaceutical.
Its Life Sciences segment offers pharmaceutical solutions, including controlled-release polymers, disintegrants, tablet coatings, thickeners, solubilizers and tablet binders; nutrition solutions, such as thickeners, stabilizers, emulsifiers and additives; and nutraceutical solutions comprising products for weight management, joint comfort, stomach and intestinal health, sports nutrition and general wellness, as well as custom formulation, toll processing and particle engineering solutions.
The Personal Care & Household segment provides a range of nature-based, biodegradable and performance ingredients; solutions for toothpastes, mouthwashes and rinses, denture cleaning and care for teeth; and household supplies nature-derived rheology ingredients, biodegradable surface wetting agents, performance encapsulates and specialty polymers.
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