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.
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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.

Three top 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.

Alexandria Real Estate Equities

This top stock has backed up nicely over the past two months and is offering a nice entry point. Alexandria Real Estate Equities Inc. (NYSE: ARE) is the longest-tenured and pioneering owner, operator and developer uniquely focused on collaborative life science, technology and agtech campuses in AAA innovation cluster locations. It had a total market capitalization of $31.9 billion as of December 31, 2020, and an asset base in North America of 49.7 million square feet.

The asset base in North America includes 31.9 million rentable square footage (RSF) of operating properties and 3.3 million RSF of Class A properties undergoing construction, 7.1 million RSF of near-term and intermediate-term development and redevelopment projects, and 7.4 million square feet of future development projects.

Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and the Research Triangle. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban science and technology campuses that provide innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity and success.
Alexandria also provides strategic capital to transformative companies through its venture capital platform. Its unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns and greater long-term asset value.

Investors currently receive a dividend of 2.73%. The company is expected to raise the $1.15 per share dividend to $1.18. BTIG Research’s $233 price target is higher than the $229.20 consensus target. The stock traded near $166 per share early Tuesday.
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NetApp

This technology stock will report earnings shortly, and analysts across Wall Street are very positive. NetApp Inc. (NASDAQ: NTAP) provides software, systems and cloud services to manage and share data on-premises and in private and public clouds worldwide.

Its cloud storage services include NetApp Cloud Volumes; cloud control solutions, such as NetApp Cloud Manager and NetApp Virtual Desktop Service; cloud services and analytics comprising NetApp Cloud Insights, NetApp Cloud Sync, NetApp Cloud Compliance, NetApp Cloud Tiering, NetApp SaaS Backup, NetApp Cloud Backup, and NetApp Global File Cache; and Cloud Optimization solutions, such as Spot by NetApp, Spot Cloud Analyzer by NetApp, Spot Eco by NetApp, Spot Ocean by NetApp, Spot Wave by NetApp, Spot Elastigroup by NetApp, and NetApp Virtual Desktop Managed Service.

The company’s data storage solutions include NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp FlexPod, NetApp E/EF series, NetApp StorageGRID, NetApp SolidFire, and NetApp HCI; data protection solutions, such as NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and NetApp Data Availability Services; and data management solutions, including NetApp ONTAP Storage Management System, NetApp ElementOS software, NetApp SANtricity software, NetApp Active IQ Digital Advisor, OnCommand Insight and OnCommand Workflow Automation.

In addition, the company offers application-aware data management service under the NetApp Astra name and payment solutions and storage-as-a-service under the NetApp Keystone name. NetApp provides assessment, design, consulting and implementation services and well.

The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video post-production and telecommunication markets through a direct sales force and an ecosystem of partners.
Holders of NetApp stock receive a 2.74% dividend, but the $0.80 per share is expected to increase to $0.96. J.P. Morgan’s $100 target price compares with a lower $96.05 consensus target. Early Tuesday, shares were changing hands at about $72 apiece.
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Universal Health Realty Income Trust

This is an outstanding total return idea for investors who also need income-producing investments. Universal Health Realty Income Trust (NYSE: UHT) is a real estate investment trust that invests in health care and human services facilities, including acute care hospitals, rehabilitation hospitals, sub-acute care facilities, medical/office buildings, free-standing emergency departments and childcare centers.

The company has investments in 71 properties in 20 states, including two that are under construction. The stock is a favorite of Vanguard Group and Bank of New York Mellon, and over the past 20 years, REITs have outperformed the regular stock market. An insider recently made a large purchase of the shares as well.

Universal Health Realty Trust has raised its dividend for 37 consecutive years. The current dividend yield is 5.38%. The dividend is expected to tick up to $0.71 per share from $0.705.

The Motley Fool analysts suggest Buying the shares, but a consensus target was not available. The stock was last seen trading near $52 per share.

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These three 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 shows that the company is doing well and has the earnings and cash flow strength to increase the payouts.

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