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 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%. That is, 10% for the increase in stock price and 3% for the dividends paid.
Four top companies are expected to raise their dividends this week, so we screened our 24/7 Wall St. research universe and found that all their stocks are rated Buy at some of the top firms on Wall Street. While it is always possible that not all these companies 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 also important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Accenture
This is a great way for investors to play information technology segment. Accenture PLC (NYSE: ACN) provides consulting, technology and outsourcing services worldwide.
The company’s Communications, Media & Technology segment provides professional services for clients to accelerate and deliver digital transformation, develop industry-specific solutions and enhance efficiencies and business results for communications, media, high-tech, software and platform companies.
The Financial Services segment offers services for profitability pressures, industry consolidation, regulatory changes and the need to adapt continually to new digital technologies for banking, capital market and insurance industries.
Its Health & Public Service segment provides consulting services and digital solutions to help clients deliver social, economic, and health outcomes for health care payers and providers, government departments and agencies, public service organizations, educational institutions and nonprofit organizations.
Shareholders currently receive a 1.06% dividend. The company is expected to raise the dividend from $0.88 per share to $0.95.
BofA Securities has a $379 target price on Accenture stock. The Wall Street consensus target is just $338.06, and the shares closed trading on Monday at $332.29.
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