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.
[in-text-ad]
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 them 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.

Clorox

The stock was a big winner during the initial stages of the pandemic but has sold off big-time and is offering the best entry point in over a year. Clorox Co. (NYSE: CLX) manufactures and markets consumer and professional products worldwide.

The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex and Formula 409 brand names. It offers professional cleaning and disinfecting products under the CloroxPro, Clorox Healthcare and Clorox Total 360 brand names; professional foodservice products under the Hidden Valley brand name; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell and Rainbow Light brand names in the United States.

The Household segment provides cat litter products under the Fresh Step, Scoop Away and Ever Clean brand names; bags and wraps under the Glad brand name; and grilling products under the Kingsford and Kingsford Match Light brand names in the United States. The Lifestyle segment offers dressings, dips, seasonings and sauces, primarily under the Hidden Valley brand name. Its natural personal care products are under the Burt’s Bees brand name, and its water-filtration systems and filters are under the Brita brand name in the United States.

Clorox stock investors currently receive a 3.22% dividend. The company is expected to lift the dividend to $1.20 per share from $1.16. Citigroup has a $160 price target, well above the consensus target of $135.67. The shares closed Friday’s trading session at $143.90.

This off-the-radar stock looks like a very solid play for the rest of 2022, especially for worried investors. Essential Utilities Inc. (NYSE: WTRG) operates regulated utilities that provide water, wastewater or natural gas services in the United States. It offers water services through operating and maintenance contracts with municipal authorities and other parties.
[in-text-ad]
The company also provides non-utility raw water supply services for firms in the natural gas drilling industry, as well as water and sewer line protection solutions and repair services to households through a third party.

Essential Utilities serves approximately 7.5 million residential water, commercial water, fire protection, industrial water, wastewater and other water and utility customers in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, West Virginia and Kentucky under the Aqua and Peoples brands. The company was formerly known as Aqua America and changed its name in February 2020.

Investors receive a dividend of 2.26%. The $0.2682 per share dividend is expected to increase to $0.2858. Wells Fargo’s price objective for Essential Utilities stock is $54. The consensus target is $53.55, and the shares closed almost 4% higher on Friday at $47.44.

John B. Sanfilippo

If you are a fan of snacking, especially with nuts, then this is a stock for you. John B. Sanfilippo & Son Inc. (NASDAQ: JBSS) through its subsidiary JBSS Ventures, processes and distributes tree nuts and peanuts in the United States. The company offers raw and processed nuts, including almonds, pecans, peanuts, black walnuts, English walnuts, cashews, macadamia nuts, pistachios, pine nuts, Brazil nuts and filberts in various styles and seasonings.

It also offers peanut butter in various sizes and varieties; snack and trail mixes, salad toppings, snacks, snack bites, dried fruit, and chocolate and yogurt coated products; baking ingredients; bulk food products; sunflower kernels, pepitas, almond and cashew butter, candy and confections, corn snacks, chickpea snacks, sesame sticks and other sesame snack products; and various toppings for ice cream and yogurt. In addition, the company operates a retail store.
The company provides its products under the Fisher, Orchard Valley Harvest, Squirrel Brand, Southern Style Nuts and Sunshine Country brands, as well as under various private brands. It serves retailers and wholesalers, and commercial ingredient and contract packaging customers through a network of independent brokers, distributors and suppliers.
[in-text-ad]
The current dividend yield is 0.95%, but John B. Sanfilippo & Son is expected to raise the dividend by a nickel per share to $0.75. The $100 price target at Sidoti would be a multiyear high. The shares closed at $73.57 on Friday.

J.M. Smucker

Anybody that has ever had a peanut butter and jelly sandwich has likely used one of this company’s products. J.M. Smucker Co. (NYSE: SJM) manufactures and markets branded food and beverage products worldwide.

The company offers mainstream roast, ground, single-serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, shortening and oils and frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients.

J.M. Smucker also provides its products under the Meow Mix, 9Lives, Kibbles n Bits, Milk-Bone, Pup-Peroni, Rachael Ray Nutrish and Nature’s Recipe, Folgers, Café Bustelo, Dunkin’, Café Bustelo, 1850, Jif, Smucker’s, Smucker’s Uncrustables, Robin Hood and Five Roses brands.

The company sells its products through direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, natural foods stores and distributors, drug stores, military commissaries and mass merchandisers.

Shareholders currently enjoy a 3.02% dividend, and the expected increase is from $0.99 per share to $1.05. Guggenheim has set a $146 target price, which compares with a $131.27 consensus target for J.M. Smucker stock. Friday’s closing print of $131.19 was up close to $3% for the day.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

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.

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