After years of a low interest rate environment, which now is trending higher, many investors have turned to equities, not only for the growth potential but also for the 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. While interest rates are rising, these companies still make sense for investors looking for solid growth and income potential.
[in-text-ad]
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.

Five large-cap companies that are Wall Street favorites are expected to raise their dividends this week. We screened our 24/7 Wall St. research universe and found that all 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, generally 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.

Ashland Global

This company will likely hold up very well in a recession, and it posted stellar earnings last month. Ashland Global Holdings Inc. (NYSE: ASH) provides additives and specialty ingredients worldwide. It offers its products to customers in a range of consumer and industrial markets, such as architectural coatings, construction, energy, food and beverage, nutraceuticals, personal care and pharmaceutical.

Its Life Sciences segment offers pharmaceutical solutions, including controlled-release polymers, disintegrants, tablet coatings, thickeners, solubilizers and tablet binders; nutrition solutions, such as thickeners, stabilizers, emulsifiers and additives; and nutraceutical solutions comprising products for weight management, joint comfort, stomach and intestinal health, sports nutrition and general wellness, as well as custom formulation, toll processing and particle engineering solutions.

The Personal Care & Household segment provides a range of nature-based, biodegradable and performance ingredients; solutions for toothpastes, mouthwashes and rinses, denture cleaning and care for teeth; and household supplies nature-derived rheology ingredients, biodegradable surface wetting agents, performance encapsulates and specialty polymers.
The Specialty Additives segment offers rheology modifiers, foam control agents, surfactants and wetting agents, pH neutralizers, advanced ceramics used in catalytic converters, environmental filters, ingredients for the manufacturing of ceramic capacitors, plasma display panels and solar cells, ingredients for textile printing, thermoplastic metals and alloys for welding.
[in-text-ad]
The Intermediates and Solvents segment produces 1,4 butanediol and related derivatives, including n-methylpyrrolidone.

Investors currently receive a 1.20% dividend. The company is expected to raise the dividend to $0.325 per share from $0.30. Mizuho has a Wall Street high $135 price target. The consensus target is $124.89, and shares traded early Monday at $100.85.

Insperity

While somewhat off the radar, this is an idea that makes sense for investors now. Insperity Inc. (NYSE: NSP) provides human resources (HR) and business solutions to improve business performance for small and medium-sized businesses.

The company offers its HR services through its Workforce Optimization and Workforce Synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers’ compensation, government compliance, performance management and training and development services.

Insperity also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; personnel record management services; and employer liability management services, as well as solutions for middle market.

In addition, the company offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; time and attendance; performance management; organizational planning; recruiting; employment screening; retirement; and insurance services.

Investors receive a 1.98% dividend. Insperity is expected to lift the $0.45 per share dividend to $0.50. The Roth Capital target price of $158 is well above the $127.33 consensus target. The shares traded on Monday at $93.85.

This company has a low 6% of foreign sales and remains a top retail pick across Wall Street. Lowe’s Companies Inc (NYSE: LOW) is a leading home improvement retailer, with more than 2,000 stores in the United States and Canada. The company has tempered its new store opening plans and is focusing investments on technology and e-commerce capabilities, in addition to improving its retail store productivity.
[in-text-ad]
Lowes offers products for maintenance, repair, remodeling and home decorating. It provides home improvement products under the categories of kitchens and appliances; lumber and building materials; tools and hardware; fashion fixtures; rough plumbing and electrical; lawn and garden; seasonal living; paint; home fashions; storage and cleaning; flooring; millwork; and outdoor power equipment. The company also offers installation services through independent contractors in various product categories.

Top analysts have felt for some time that the company’s tool rental business, which is a $1.5 billion revenue opportunity, is a strong catalyst for multiple expansion.

Shareholders now receive a 1.73% dividend, but the $0.80 per share dividend is expected to increase to $0.96. UBS recently lowered its $250 price objective to $240. The $251.92 consensus target for Lowe’s Companies stock is higher, but shares traded at $186.50 Monday morning.

Medtronic

This medical technology giant is a solid pick for investors looking for a safe position in the health care sector. Medtronic PLC (NYSE: MDT) develops, manufactures, distributes and sells device-based medical therapies to hospitals, physicians, clinicians and patients worldwide. It operates in four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group and Diabetes Group.

The company announced in 2020 that Blackstone’s life sciences division will invest $337 million into the research and development of its diabetes device technologies. Under the terms of the agreement, Medtronic will receive funding for four diabetes R&D programs over the next several years. Medtronic’s engineering, clinical and regulatory teams will conduct the development work for the programs.

Medtronic stock currently comes with a 2.46% dividend. The payout is expected to rise to $0.68 a share from $0.63. The $122 Bernstein target price is lower than the $123.68 consensus target. The stock traded at $103.55 on Monday.

With top fragrances and clothing lines, this is always a solid price for investors. Ralph Lauren Corp. (NYSE: RL) designs, markets and distributes lifestyle products in North America, Europe, Asia and elsewhere.
[in-text-ad]
The company offers apparel, including a range of men’s, women’s and children’s clothing and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, umbrellas, and belts, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, lighting, tabletop, floor coverings, and giftware; and fragrances.

The company sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, Chaps, and Club Monaco brands; women’s fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, Ralph Collection, and Big Pony Women’s brand names; and men’s fragrances under the Polo Blue, Safari, Purple Label, Polo Red, Polo Green, Polo Black, Polo Supreme, Polo Sport, and Big Pony Men’s brand names.

Ralph Lauren sells its products to department stores, specialty stores and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops and its digital commerce sites. The company directly operates 548 retail stores and 650 concession-based shop-within-shops, and it operates 139 Ralph Lauren stores and 143 Club Monaco stores and shops through licensing partners.

Investors receive a 2.95% dividend. The $0.45 per share dividend is expected to increase to $0.50. Credit Suisse has set a $130 price objective. The consensus target is $132.91, and Ralph Lauren stock recently traded at $92.25.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

These five top blue chip 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 shows that the company is doing well and has the earnings and cash flow strength to increase the payouts.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.