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, 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 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%: a 10% for the increase in stock price and 3% for the dividends paid.
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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 are rated Buy at some of the top analysts. While it is always possible that not all of them do indeed raise their dividends, analysts expect them to, and the data is based generally on past increases in the firm’s dividend payouts.

It is important to remember, though, that no single analyst report should be used in making a buying or selling decision.

Four Corners Property Trust

This is a great idea for investors looking for income and an inflation hedge. Four Corners Property Trust Inc. (NYSE: FCPT) engages in the owning, acquisition and leasing of properties for use in the restaurant and food-service related industries. Its Real Estate Operations segment consists of rental revenues generated by leasing restaurant properties. The Restaurant Operations segment comprises the Kerrow Restaurant operating business.

Four Corners Property posted better-than-expected third-quarter revenues of $50.71 million for the quarter ended September 2021. Revenue was just under $43 million a year ago. The company has topped consensus revenue estimates in each of the past four quarters.

Shareholders currently receive a 4.50% yield. The company is expected to raise the dividend to $0.33 per share from $0.3175.

Evercore ISI has a $34 price target, while the consensus target is $32.50. Early Monday, shares were trading near $28.50.

McCormick

Those who spend time cooking in the kitchen use the products this company makes all the time. McCormick & Co. Inc. (NYSE: MKC) manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry.

The company’s Consumer segment offers spices, herbs and seasonings, as well as desserts. This segment markets its products under the McCormick, French, Frank’s RedHot, Lawry’s, Gourmet Garden, Club House, and OLD BAY brands in the Americas; Ducros, Schwartz, Kamis, Drogheria & Alimentari, and Vahiné brand names in Europe, the Middle East and Africa; McCormick and DaQiao brands in China; and McCormick, Aeroplane and Gourmet Garden brand names in Australia. It also markets regional and ethnic brands, such as Zatarain’s, Stubb’s, Thai Kitchen and Simply Asia.

The company also supplies its products under the private labels. This segment serves retailers, including grocery, mass merchandise, warehouse clubs, discount and drug stores and e-commerce retailers, directly and indirectly through distributors or wholesalers.

Shareholders currently receive a 1.62% yield. The dividend is expected to increase to $0.37 per share from $0.34.

The Credit Suisse price target on McCormick stock is $98. The consensus target is $88.29, and the shares were trading near $84.50 Monday morning.

This remains a leading health care stock for conservative investors. Merck & Co. Inc. (NYSE: MRK) offers therapeutic and preventive agents to treat cardiovascular issues, type 2 diabetes, asthma, nasal allergy symptoms, allergic rhinitis, chronic hepatitis C virus, HIV-1 infection, fungal infections, intra-abdominal infections, hypertension, arthritis and pain, inflammatory, osteoporosis, male pattern hair loss and fertility diseases.
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The company also provides neuromuscular blocking agents for use in surgery, anti-bacterial products for skin and skin structure infections, cholesterol modifying medicines, non-sedating antihistamine and vaginal contraceptive products.

Merck stock investors currently receive a 3.19% yield. The company is expected to boost raise the $0.65 per share dividend to $0.70.

The $105 SVB Leerink target price is a Wall Street high. The consensus target is $95.78, and the shares traded on Monday above $81.

South Jersey Industries

This off-the-radar stock has very solid total return potential. South Jersey Industries Inc. (NYSE: SJI) engages in the provision of energy-related products and services. It operates through the following segments:

• The SJG Utility Operations segment consists of natural gas distribution to residential, commercial and industrial customers in southern New Jersey.
• The ETG Utility Operations segment consists of natural gas distribution to residential, commercial and industrial customers in northern and central New Jersey.
• The ELK Utility Operations segment consists of natural gas distribution to residential, commercial and industrial customers in Maryland.
• The Wholesale Energy Operations segment includes the activities of South Jersey Resources Group and South Jersey Exploration.
• The Retail Electric Operations segment consists of electricity acquisition and transportation to commercial, industrial and residential customers.

The current payout is a massive 5%. The $0.315 per share dividend is expected to rise to $0.0325.

Maxim’s $31 price objective compares with the consensus $28.30 target and a share price shy of $25 Monday morning.

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