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.
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.
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.