After years of a low-interest rate environment, which has reversed in a big way over the last 18 months, many investors continue to turn to equities not only for growth potential but also for solid and dependable dividends that help provide an income stream. This equates to total return, one of the most influential investment strategies.
We always 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%—10% for the increase in stock price and 3% for the dividends paid.
Four 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’s always possible that not all of the four do indeed raise their dividends, top analysts expect them to, and generally, the data is based on past increases in the firm’s dividend payouts.
ABM Industries
This company has traded solidly over the last month and is breaking a downtrend line from last June. ABM Industries Incorporated (NYSE: ABM) provides integrated facility, infrastructure, and mobility solutions internationally and internationally.
The company operates through the following segments:
- Business & Industry
- Manufacturing & Distribution
- Education,
- Aviation
- Technical Solutions
The company offers janitorial, facilities engineering, and parking services for commercial real estate properties, including corporate offices for high-tech clients, sports and entertainment venues, and traditional hospitals and non-acute healthcare facilities; provides vehicle maintenance and other services to rental car providers.
ABM Industries also offers integrated facility services, engineering, and other specialized services in manufacturing, distribution, and data center facilities.
In addition, the company delivers custodial and landscaping and grounds for
- Public school districts
- Private schools
- Colleges
- Universities
Further, it supports airlines and airports with services comprising passenger assistance, catering logistics, air cabin maintenance, and transportation services.
Additionally, the company provides electric vehicle power design, installation, maintenance, and microgrid systems installations.
Investors are currently receiving a substantial 2.02% dividend. The company is expected to raise the dividend to $0.24 from $0.22.
American Tower
This wireless tower company is a top pick on Wall Street and is acknowledged as an industry leader. American Tower Corporation (NYSE: AMT | AMT Price Prediction) is one of the largest global owners and operators of wireless and broadcast communications towers.
The American Tower portfolio includes approximately 219,000 U.S., Latin America, India, Europe, and Africa sites. The company’s core business primarily leases space on its wireless towers to wireless carriers, government agencies, and broadband data providers.
On a multiple basis, the company trades cheaper than the competition, and many top analysts around Wall Street feel the growth potential for the company remains among the best in the industry.
Investors are paid a solid 3.14% dividend. The company is expected to raise the dividend to $1.70 per share from $1.62.
WD-40 Company
With a product that is one of the most widely used worldwide for many tasks, it is a consistent favorite across Wall Street. WD-40 Company (NASDAQ: WDFC) develops and sells maintenance products, as well as homecare and cleaning products, in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
The company provides multi-purpose maintenance products that include
- Aerosol sprays
- Non-aerosol trigger sprays
- Precision pens
- Liquid-bulk form products under the WD-40 Multi-Use brand name
- Specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand, and bike-specific products.
It also offers multi-purpose and specialty drip oils, spray lubricant products, other specialty maintenance products under the 3-IN-ONE brand name, and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name.
WD-40 provides automatic toilet bowl cleaners under the 2000 Flushes brand name;
- Aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand
- Room and rug deodorizers under the Carpet Fresh brand name
- Carpet and household cleaners and rug and room deodorizers under the 1001 brand
- Heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia
- Automatic toilet bowl cleaners under the X-14 brand name.
It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supplies, sports retailers, and independent bike dealers.
Investors are currently paid a 1.39% dividend, which is expected to be bumped to $0.93 from $0.89.
WEC Energy Group
Trading well off the 52-week high, this is a solid total return play for conservative investors to look at. Through its subsidiaries, WEC Energy Group, Inc. (NYSE: WEC) provides regulated natural gas and electricity and renewable and nonregulated renewable energy services in the United States.
The company operates through six segments:
- Wisconsin
- Illinois
- Other States
- Electric Transmission,
- Non-Utility Energy Infrastructure
- Corporate and Other
It generates and distributes electricity from coal, natural gas, and oil, as well as hydroelectric, wind, solar, and biomass sources; provides electric transmission services; offers retail natural gas distribution services; transports natural gas; and generates, distributes, and sells steam.
As of December 31, 2022, it operated approximately
- 35,600 miles of overhead distribution lines
- 36,100 miles of underground distribution cables
- 430 electric distribution substations
- 514,800 line transformers
- 52,000 miles of natural gas distribution mains
- 1,100 miles of natural gas transmission mains
- 2.4 million natural gas lateral services
- 500 natural gas distribution and transmission gate stations
- 68.2 billion cubic feet of working gas capacities in underground natural gas storage fields
Four top companies are rated Buy across Wall Street and are expected to lift the dividends they pay shareholders. Not only is increasing dividends and returning capital to investors necessary, but it also shows that the company is doing well and has the earnings and cash flow strength to increase the payouts.
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