Investing

4 Buy-Rated Blue Chip Stocks With Dividend Hikes Due This Week

Courtesy of Starbucks

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 large-cap 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.

American Express

This stock has had a solid year but still trades at a reasonable level. American Express Co. (NYSE: AXP) provides charge and credit payment card products and travel-related services worldwide. Its products and services include payment and financing products network services accounts payable expense management products and services, and travel and lifestyle services.

The company’s products and services also comprise merchant acquisition and processing, servicing and settlement, point-of-sale marketing and information products and services for merchants, and fraud prevention services, as well as the design and operation of customer loyalty programs. It sells its products and services to consumers, small businesses, midsized companies and large corporations through mobile and online applications, third-party vendors and business partners, direct mail, telephone, in-house sales teams and direct response advertising.

Shareholders currently receive a 0.98% yield. Amex is expected to raise the dividend to $0.46 per share from $0.43.

Morgan Stanley has a $195 price target on the financial giant. The consensus target for American Express stock is $183.63. The shares were trading near $177 on Monday.

General Mills

General Mills Inc. (NYSE: GIS) manufactures and markets branded consumer foods worldwide. The company offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, bakery flour, frozen pizza and pizza snacks, snack bars, fruit and salty snacks, ice cream, nutrition bars, wellness beverages, and savory and grain snacks, as well as various organic products, including frozen and shelf-stable vegetables.

The company also supplies branded and unbranded food products to the North American foodservice and commercial baking industries, and it manufactures and markets pet food products, including dog and cat food.
General Mills markets its products under the Annie’s, Betty Crocker, Bisquick, Blue Buffalo, Blue Basics, Blue Freedom, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, Fiber One, Food Should Taste Good, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto’s, Go-Gurt, Gold Medal, Golden Grahams, Häagen-Dazs, Helpers, Jus-Rol, Kitano, Kix, Lärabar, Latina, Lucky Charms, Muir Glen, Nature Valley, Oatmeal Crisp, Old El Paso, Oui, Pillsbury, Progresso, Raisin Nut Bran, Total, Totino’s, Trix, Wanchai Ferry, Wheaties, Wilderness, Yoki and Yoplait trademarks.

Shareholders currently receive a 3.46% yield. The company is expected to raise the $0.51 per share dividend to $0.53.

Deutsche Bank’s $65 price target on General Mills stock is higher than the $63 consensus target. The stock was trading just north of $60 a share early Monday.

Honeywell International

This top industrial stock could be poised for an incredible end to 2021 and beyond, if global growth picks up. Honeywell International Inc. (NYSE: HON) is a New-Jersey-based diversified, global technology and manufacturing company with operations are organized under four business groups: Aerospace, Home & Building Technologies, Safety & Productivity Solutions, and Performance Materials & Technologies.

The company is also a premier supplier of avionics, power and control systems for the aerospace industry. The analysts recently attended the company’s Honeywell Building Technologies Investor Showcase at the segment’s Atlanta headquarters.

Shareholders now receive a 1.70% yield. Honeywell’s dividend hike is expected to be from $0.93 per share to $0.98.

The $253 Barclays price target is the highest on Wall Street. The consensus price objective is $243.62, and Honeywell International stock was spotted near $219 on Monday.

Starbucks

Shares of the ubiquitous retail giant have traded down some recently and are offering a very solid entry point. Starbucks Corp. (NASDAQ: SBUX) operates as a roaster, marketer and retailer of specialty coffee worldwide. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, juices and bottled water.

The company also licenses its trademarks through licensed stores, and grocery and national foodservice accounts. The company offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos, Starbucks VIA, Seattle’s Best Coffee, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers and Starbucks Discoveries Iced Café Favorites brand names.

Shareholders are currently paid a 1.58% yield. The dividend is expected to rise to $0.50 per share from $0.45.

Jefferies has a Wall Street high $145 price target, while the consensus target is $131.11. The stock was trading near $114 a share on Monday.


These four top stocks are rated Buy across Wall Street, and the companies are expected to lift the dividends they pay to shareholders. 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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