Investing

2 of Wall Street's Favorite Stocks Likely to Raise Their Dividends This Week

Lee Jackson

Published: June 3, 2024 10:50 am

24/7 Insights

• Companies that consistently raise dividends often have strong balance sheets.
• Dividend stocks offer dependable passive income.
• Access 2 legendary, high-yield dividend stocks Wall Street loves.

After almost 15 years of a low-interest rate environment, which has reversed significantly over the past two years, many investors continue to turn to equities for their potential for growth and solid and dependable dividends. These dividends, known for their reliability, help provide an income stream, equating to total return.

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. 

This week, we have identified two top Wall Street favorites expected to increase their dividends. Our research within the 24/7 Wall St. universe reveals that reputable Wall Street firms rated these stocks as Buy. While there’s always a chance that these companies will not raise their dividends, leading analysts anticipate they will so based on their past dividend payout increases.

Tootsie Roll

Source: robtek / Getty Images

Everybody has had one of the tasty candies this legacy company has made for over 100 years. Tootsie Roll Industries Inc. (NYSE: TR) engages in the manufacture and sale of confectionery products in the United States, Canada, Mexico, and internationally.

It sells its products under these popular brands:

• Tootsie Roll
• Tootsie Fruit Rolls
• Frooties
• Tootsie Pops
• Tootsie Mini Pops
• Child’s Play
• Caramel Apple Pops
• Charms
• Blow-Pop
• Charms Mini Pops
• Cella’s
• Dots
• Junior Mints
• Charleston Chew
• Sugar Daddy
• Sugar Babies
• Andes
• Fluffy Stuff
• Dubble Bubble
• Razzles
• Cry Baby
• NIK-L-NIP
• Tutsi Pop

The company sells its products directly to wholesale distributors of

• Candy food groceries and supermarkets
• Variety stores
• Dollar stores
• Chain grocers
• Drug chains
• Discount chains
• Cooperative grocery associations
• Mass merchandisers,
• Warehouse and membership club stores
• Vending machine operators
• e-commerce merchants
• The United States military, and fund-raising charitable organizations

Investors are currently receiving a 1.19% yield. The company is expected to raise the dividend to $0.10 from $0.874.

5 Best Dividend Stocks to Buy in June

UnitedHealth Group

Source: Wolterk / iStock Editorial via Getty Images

This is a company where a whopping 45% of the fund managers have bought shares. UnitedHealth Group Inc. (NYSE: UNH) operates through four segments:

• UnitedHealthcare
• Optum Health
• Optum Insight
• Optum Rx

The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for:

• National employers
• Public sector employers
• Mid-sized employers
• Small businesses, and individuals health care coverage
• Health and well-being services to individuals age 50 and older 
• Medicaid plans
• Children’s health insurance and health care programs
• Health and dental benefits
• Hospital and clinical services
• Health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage

The Optum Health segment provides care delivery, care management, wellness and consumer engagement, and health financial services patients, consumers, care delivery systems, providers, employers, payers, and public-sector entities.

Its Optum Insight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations.

The Optum Rx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, infusion, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. 

Shareholders are currently paid a 1.52% yield. The company is expected to raise the dividend to $2.07 from $1.88.

Two top companies, all rated Buy across Wall Street, are expected to raise their dividends to 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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