After years of a very low interest rate environment, those rates have trended much higher over the past 12 months. Yet, many investors still turn 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 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%: 10% for the increase in stock price and 3% for the dividends paid.
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Five top large-cap companies that are Wall Street favorites are expected to raise their dividends this week. Their stocks are all rated Buy at some of the top firms on Wall Street. While it is always possible that not all five do indeed raise their dividends, top analysts expect them to, and 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.
American Tower
This wireless tower company is a top pick on Wall Street and an acknowledged industry leader. American Tower Corp. (NYSE: AMT), one of the largest global real estate investment trusts, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 225,000 communications sites.
The company reported mixed results for the year in late February, but with continued growth, and an ongoing need for cellular towers increasing at an incredible rate, this market leader is a solid buy now.
Investors receive a dividend of 3.20%. The payout is expected to increase by two cents per share to $1.58.
BofA Securities has a $240 target price on American Tower stock. The consensus target is $246.81, and Friday’s closing share price was $202.50.
24/7 Wall St.Dick’s Sporting Goods
This popular retailer is heading into its busiest time of the year, with spring right around the corner. Dick’s Sporting Goods Inc. (NYSE: DKS) operates as a sporting goods retailer primarily in the eastern United States. It provides hardlines, including sporting goods equipment, fitness equipment, golf equipment and hunting and fishing gear products, as well as apparel, footwear and accessories.
Dick’s also owns and operates Golf Galaxy, Field & Stream, and other specialty concept stores; e-commerce websites; and GameChanger, a youth sports mobile app for scheduling, communications and live scorekeeping. As of May 1, 2021, it operated 730 Dick’s Sporting Goods stores.
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Shareholders currently receive a 1.52% dividend. The company is expected to lift the dividend in a big way to $0.5375 from $0.4875.
Cowen’s price target is $166, and Dick’s Sporting Goods stock has a $137.35 consensus target. Friday’s closing print was $132.11.
General Dynamics
Like other major defense contractors, General Dynamics Corp. (NYSE: GD) looks poised to deliver solid numbers and guidance. It is engaged in business aviation, land and expeditionary combat vehicles and systems, armaments, munitions, shipbuilding and marine systems, and information systems and technologies.
Major products include Virginia-class nuclear-powered submarine and Ohio-class replacement, Arleigh Burke-class Aegis, Abrams M1A2 tank, Stryker 8-wheeled assault vehicle, medium-caliber munitions and gun systems, and tactical and strategic mission systems.
General Dynamics stock investors receive a 2.21% dividend, and the $1.26 per share dividend is expected to increase to $1.36.
Citigroup has set its price target at $283. That is well above the $269.68 consensus target and Friday’s close at $231.04.
24/7 Wall St.Oracle
Despite a strong run, this top software stock is still offering a good entry point. Oracle Corp. (NYSE: ORCL) develops, manufactures, markets, sells, hosts and supports database and middleware software, application software, cloud infrastructure, hardware systems and related services worldwide.
The company licenses its Oracle Database software to customers, which is designed to enable reliable and secure storage, retrieval and manipulation of various forms of data. Its Oracle Fusion Middleware software aims to build, deploy, secure, access and integrate business applications, as well as automate their business processes.
Last year, Oracle and Cerner closed an agreement for the former to acquire the latter through an all-cash tender offer for $95 per share, or approximately $28.3 billion in equity value. Cerner is a leading provider of digital information systems used within hospitals and health systems to enable medical professionals to deliver better health care to individual patients and communities.
The current dividend yield is 1.48%, and the expected increase is from $0.32 per share to $0.38.
The $116 Mizuho price objective compares with a $92.83 consensus target and an $89.25 close for Oracle stock on Friday.
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Qualcomm
This stock has traded sideways since November and could be poised to break out when things settle down. Qualcomm Inc. (NASDAQ: QCOM) engages in the development and commercialization of foundational technologies for the wireless industry worldwide.
The Qualcomm CDMA Technologies segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, application processing, multimedia and global positioning system products.
The Qualcomm Technology Licensing segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and OFDMA-based 5G standards and their derivatives.
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