After years of a low interest rate environment (though those rates now are trending higher faster), 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. While interest rates are rising, these stocks still make sense for investors looking for solid growth and income potential.

We like to remind 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%. That is, 10% for the increase in stock price and 3% for the dividends paid.

Four top companies that are Wall Street favorites and outstanding ideas in today’s volatile markets are expected to raise their dividends this week. Their stocks are rated Buy at some of the top firms on Wall Street. While it is possible that not all of the three do indeed 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 important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Darden Restaurants

The return to sit-down dining in restaurant locations has been huge for this industry leader. Darden Restaurants Inc. (NYSE: DRI) owns and operates full-service restaurants in the United States and Canada.

As of May 30, 2021, Darden Restaurants owned and operated 1,834 restaurants, including 875 under the Olive Garden banner, 533 LongHorn Steakhouse, 170 Cheddar’s Scratch Kitchen, 81 Yard House, 63 The Capital Grille, 44 Seasons 52, 42 Bahama Breeze, and 26 Eddie V’s Prime Seafood.

Investors currently receive a dividend of 3.85%. The company is expected to raise the dividend to $1.20 per share from $1.10. UBS has a $155 price target on Darden Restaurants stock. The consensus target is $153.99. and shares traded at $116.50 early Tuesday.

Kroger

This grocery chain giant is always a solid idea when the going gets rough, as people tend to go out less to eat. Kroger Co. (NYSE: KR) operates as a retailer in the United States. It operates combination food and drug stores, multi-department stores, marketplace stores and price impact warehouses.

Its food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood and organic produce. Its multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products and toys.

The company’s marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys. The price impact warehouse stores provide grocery and health and beauty care items, as well as meat, dairy, baked goods and fresh produce items.

The company also manufactures and processes food products for sale in its supermarkets and online, and it sells fuel through 1,613 fuel centers. As of January 29, 2022, the company operated 2,726 supermarkets under various banner names in 35 states and the District of Columbia.

Kroger stock investors shareholders receive a 1.82% dividend, but the $0.21 per share dividend is expected to rise to $0.24. The BofA Securities target price of $75 is well above the $55.46 consensus target. A share price of $46.55 was seen in Tuesday’s premarket.

While a somewhat off-the-radar idea, this stock may offer investors the perfect sector idea now. Matson Inc. (NYSE: MATX) provides ocean transportation and logistics services. Its Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska and Guam, as well as to other island economies in Micronesia.

The company primarily transports dry containers of mixed commodities, refrigerated commodities, packaged foods and beverages, building materials, automobiles and household goods; livestock; seafood; general sustenance cargo; and garments, footwear, e-commerce and other retail merchandise.

This segment also operates an expedited service from China to Long Beach, California, and various islands in the South Pacific, as well as Okinawa, Japan. It provides container stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance and other terminal services to ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai, as well as in the Alaska locations of Anchorage, Kodiak and Dutch Harbor.

In addition, Matson offers vessel management and container transshipment services. Its Logistics segment provides multimodal transportation brokerage services, including domestic and international rail intermodal, long-haul and regional highway trucking, specialized hauling, flat-bed and project, less-than-truckload, and expedited freight services; less-than-container load consolidation and freight forwarding services; warehousing and distribution services; supply chain management services; and non-vessel operating common carrier freight forwarding services. The company serves the U.S. military, freight forwarders, retailers, consumer goods, automobile manufacturers and other customers.

Investors receive a 1.65% dividend. That dividend is expected to increase to $0.36 per share from $0.30. The $131 Stifel target price compares with a $118 consensus target. The stock was trading at $74.77 Tuesday morning.

Saul Centers

This dividend-paying real estate investment trust is a strong play in an inflationary environment. Saul Centers Inc. (NYSE: BFS) is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland. It currently operates and manages a real estate portfolio of 60 properties, which includes 50 community and neighborhood shopping centers, seven mixed-use properties with approximately 9.8 million square feet of leasable area, and three land and development properties. Approximately 85% of the Saul Centers’ property operating income is generated by properties in the metropolitan Washington/Baltimore area.

The company posted solid earnings, and large institutional investors have added the shares as expectations going forward have strengthened. Plus, the strong presence in the nation’s capital area is a plus as the economy remains strong due to the omnipresent government spending and high net worth consumers.

The current dividend yield is 5.31%. The company is expected to raise the $0.57 per share dividend to $0.59. B. Riley Securities has set a $54 target price. The consensus target is $53.33. The stock was last seen at $42.97 a share.

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

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