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 that 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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Five top large-cap companies that are Wall Street favorites 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 by some 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.

CSX

This is a solid play on an improving economy and supply chain. CSX Corp. (NASDAQ: CSX) provides rail-based freight transportation services and is one of America’s largest railroad companies.

The company’s services includes rail services, such as transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It transports chemicals, agricultural and food products, automotive, minerals, forest products, fertilizers and metals and equipment, as well as coal, coke and iron ore to electricity-generating power plants, steel manufacturers and industrial plants, and it exports coal to deepwater port facilities.

The company offers intermodal transportation services through a network of approximately 30 terminals transporting manufactured consumer goods in containers and its drayage services include the pickup and delivery of intermodal shipments. It serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products from rail to trucks, which includes plastics and ethanol.

The company operates approximately 19,500 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia and the Canadian provinces of Ontario and Quebec, as well as owns and leases approximately 3,539 locomotives.

Shareholders currently receive a 1.07% dividend. The company is expected to lift the dividend to $0.105 from $0.093.

Deutsche Bank has a $41 price target on CSX stock, while the consensus target is $39.96. The shares were trading early Monday at $34.00.

With consumers that have money to spend and the country open again, the venerable motorcycle maker is a great bet for the rest of 2022 and beyond. Harley-Davidson Inc. (NYSE: HOG) manufactures and sells custom, cruiser and touring motorcycles. The company operates in two segments, Motorcycles and Related Products and Financial Services.

Its Motorcycles and Related Products segment designs, manufactures and sells Harley-Davidson motorcycles, including cruiser, touring, standard, sportbike and dual models, as well as motorcycle parts, accessories, general merchandise and related services. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels in the North America, Latin America, Europe and elsewhere.

The Financial Services segment provides wholesale financing services, such as floor plan and open account financing of motorcycles, and parts and accessories. It offers retail financing services, including installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale protection products, comprising motorcycle insurance, extended service contracts and motorcycle maintenance protection. This segment also licenses third-party financial institutions that issue credit cards bearing the Harley-Davidson brand.

Investors now receive a yield of 1.69%. The expected hike in the dividend is to $0.21 per share from $0.15.

The BofA Securities price target is $70, well above the $51.70 consensus target. Harley-Davidson stock traded at $36.20 Monday morning.

Monolithic Power Systems

This off-the-radar play has remained a favorite over the years at Truist. Monolithic Power Systems Inc. (NASDAQ: MPWR) designs, develops and markets integrated power semiconductor solutions and power delivery architectures for consumer, industrial, computing and storage, and communications market segments.

The company offers direct current (DC) to DC converter integrated circuits used to convert and control voltages of various electronic systems, such as portable electronic devices, wireless LAN access points, computers, monitors, automobiles and medical equipment.

The company also provides lighting control integrated circuits for backlighting that are used in systems, which provide the light source for LCD panels in notebook computers, monitors, car navigation systems and televisions, as well as for general illumination applications. In addition, it offers alternating current (AC)/DC offline solutions for lighting illumination applications and AC/DC power conversion solutions for various end products that plug into a wall outlet.

Shareholders now receive a 0.61% dividend. The company is expected to lift the dividend to $0.70 per share from $0.60.

The $613 Truist price target compares to the $583.50 consensus target on Monolithic Power Systems stock. Shares changed hands at $401.30 early Monday.

Rexford Industrial Realty

This company could really take off if the current economic expansion is sustained, and it is a member of the BofA Securities US 1 list of top stock picks. Rexford Industrial Realty (NYSE: REXR) is a real estate investment trust focused on owning and operating industrial properties throughout Southern California infill markets. It owns 232 properties with approximately 27.9 million rentable square feet and manages an additional 20 properties with approximately 1.0 million rentable square feet.

The company has plans to grow its portfolio and earnings through market rent and occupancy growth, and a large pipeline of acquisitions in the same region.

Rexford Industrial Realty stock investors currently receive a dividend of 1.33%. The $0.240 per share dividend is expected to rise to $0.265.

The BofA Securities price target of $90, compares with the $84.38 consensus target. At one point on Monday, the share price was $71.80.

T. Rowe Price

This money management and mutual fund giant is a great addition for inventors looking for conservative financial ideas. T. Rowe Price Group Inc. (NASDAQ: TROW) is a publicly owned investment manager.

It provides its services to individuals, institutional investors, retirement plans, financial intermediaries and institutions. It launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe. It employs fundamental and quantitative analysis with a bottom-up approach.

T. Rowe Price utilizes in-house and external research to make its investments. It employs socially responsible investing with a focus on environmental, social and governance issues. It makes investment in late-stage venture capital transactions and usually invests between $3 million and $5 million.

The current dividend yield is 2.92%. A huge raise is expected, with the dividend going to $1.22 per share from $1.08.

The T. Rowe Price stock’s price target at BMO Capital Markets is $198. The consensus target is lower at $167.45, and shares were trading at $152.80.

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Five top blue-chip companies that all are rated Buy across Wall Street and 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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