After years of a low interest rate environment, many investors have turned to equities not only for the growth potential but also for 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.

We always like to remind our readers about the impact total return can have 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 the 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 companies are expected to raise their dividends this week, so we screened our 24/7 Wall St. research universe and found that the stocks of all five 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, and generally 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.

Bonanza Creek Energy

This stock is way off the radar but offers solid upside potential. Bonanza Creek Energy Inc. (NYSE: BCEI) engages in the extraction of oil and associated liquids-rich natural gas. It is focused on the Niobrara and Codell formations in the Denver-Julesburg Basin.

The company’s primary oil and liquids-weighted assets are located in the Wattenberg Field in Colorado. As of December 31, 2020, the company had proved reserves of 118.2 million barrels of oil equivalent. The company announced in May that it entered a definitive agreement with Extraction Oil & Gas to merge in an all-stock deal of equals, wherein shareholders of both companies will have equal percentage shareholdings in the combined entity. Notably, the deal, which is valued at $2.6 billion, is expected to complete in the third quarter of 2021.

The merged entity, renamed as Civitas Resources, will be regarded as the largest pure-play oil and gas company in the Denver-Julesburg Basin of Colorado. In fact, a majority of the companies’ operations are based in this basin, spreading across the Front Range and parts of Wyoming and Nebraska.

Shareholders currently receive a 3.64% annual dividend. The company is expected to raise the dividend to $0.40 per share from $0.35.

Truist Securities has a massive $60 price target, but the Wall Street consensus target is even higher at $62.17. The shares were trading early Monday near $37.30.

This is a solid technology play that is due to report earnings this week. Broadridge Financial Solutions Inc. (NYSE: BR) provides investor communications and technology-driven solutions for the financial services industry worldwide.
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Its Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote-processing services. It offers ProxyEdge, an electronic proxy delivery and voting solution, and it also distributes regulatory reports and corporate action/reorganization event information, as well as tax reporting solutions. It provides end-to-end platform for content management, composition and multi-channel distribution of regulatory, marketing and transactional information, as well as mutual fund trade processing services.

In addition, this segment offers financial reporting document composition and management solutions; SEC disclosure and filing services; registrar, stock transfer and record-keeping services; customer communication solutions; cloud-based marketing and customer communication tools; and customer and account data aggregation and reporting services. It also creates sales and educational content, including seminars and a library of financial planning topics, and mutual fund trade processing services.

The Global Technology and Operations segment offers desktop productivity tools, data aggregation, performance reporting, portfolio management, order capture and execution, trade confirmation, margin, cash management, clearance and settlement, asset servicing, reference data management, reconciliations, securities financing and collateral optimization, compliance and regulatory reporting and accounting.

Shareholders now receive a 1.33% annual dividend. That dividend is expected to rise to $0.61 per share from $0.575.

The Truist Securities price target is $175, while the consensus target is $175.37. The shares were trading at $173.45 early Monday.

Martin Marietta

This remains a favorite across Wall Street, especially with a large infrastructure package in the works on Capitol Hill. Martin Marietta Materials Inc. (NYSE: MLM) is a natural resource-based building materials company, supplying aggregates and heavy-side building materials to the construction industry in the United States and internationally.

The company offers crushed stone, sand and gravel products; ready mixed concrete and asphalt; paving products and services; and Portland and specialty cement used in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility and environmental industries.

Martin Marietta also manufactures and markets magnesia-based chemical products for the industrial, agricultural and environmental applications, as well as dolomitic lime primarily for customers in the steel and mining industries. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production and other environmental applications.

The company remains upbeat, not just on 2021 construction demand, but also noted that many states with its greatest exposure were well positioned for housing and public nonresidential construction growth.

The current dividend yield is 0.62%, and the company is expected to raise the dividend to $0.60 per share from $0.57.

The $405 Morgan Stanley price target is well above the $385.70 consensus target. The stock was up Monday in early trading around $368.60.

This medical device company is based in Ireland, and it offers a very solid idea for growth stock investors looking to add health care stocks. Steris PLC (NYSE: STE) provides infection prevention and other procedural products and services worldwide.
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Its Healthcare segment offers cleaning chemistries and sterility assurance products, including accessories for gastrointestinal procedures, washers, sterilizers, and other pieces of capital equipment for the operation of a sterile processing department. It offers equipment used directly in the operating room, including surgical tables, lights and connectivity solutions, as well as equipment management services.

Steris also provides capital equipment installation, maintenance, upgradation, repair and troubleshooting services; preventive maintenance programs and repair services; instrument and endoscope repair and maintenance services; and custom process improvement consulting and outsourced instrument sterile processing services. These products and services are offered to acute care hospitals and other health care settings.

Its Applied Sterilization Technologies segment provides contract sterilization and testing services for medical device and pharmaceutical manufacturers through a network of approximately 50 contract sterilization and laboratory facilities.

The Life Sciences segment designs, manufactures and sells consumable products, such as formulated cleaning chemistries, barrier and sterility assurance products, steam and vaporized hydrogen peroxide sterilizers and washer disinfectors.

Shareholders currently receive a 0.74% dividend. The anticipated increase in the dividend is from $0.40 per share to $0.43.

Needham has set a $233 price target. The consensus target is $228.40, and the stock traded near $216.00 on Monday.

Tyson Foods

This is the ultimate consumer staples type play for worried investors. Tyson Foods Inc. (NYSE: TSN) operates as a food company worldwide. It processes live fed cattle and live market hogs; fabricates dressed beef and pork carcasses into primal and subprimal meat cuts, as well as case ready beef and pork, and fully-cooked meats; raises and processes chickens into fresh, frozen and value-added chicken products; and supplies poultry breeding stock. It also sells specialty products, such as hides and meats.

Tyson also manufactures and markets frozen and refrigerated food products, including ready-to-eat sandwiches, flame-grilled hamburgers, Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks and processed meats under the Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells and Gallo Salame brands. The company also offers its products under Tyson and BP brands.

It sells its products through its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, live markets, international export companies and domestic distributors that serve restaurants and foodservice operations, such as plant and school cafeterias, convenience stores, hospitals and other vendors, as well as through independent brokers and trading companies.

The company currently pays a 2.50% dividend. The $0.445 per share is expected to rise to $0.47.

Argus has a $92 price target. The consensus target is just $83.50. The stock popped over 6% to $75.75 after Monday’s very solid second-quarter report.

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These five top stocks are rated Buy across Wall Street, and the companies are expected to lift the dividends they pay to shareholders soon. Not only is increasing dividends and returning capital to investors important, 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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