With interest rates rising over the past year, many investors are now looking at short-term Treasury debt as a solid idea. Volatility and the potential for a stock market meltdown has made some market participants quite nervous. However, many long-term horizon investors still turn to equities, not only for the growth potential but also for 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.

We always 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%: 10% for the increase in stock price and 3% for the dividends paid.

Four 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 three of the four are rated Buy at some of the top firms on Wall Street.

While it is always possible that not all four do indeed raise their dividends, top analysts expect them to,  based on past increases in each 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.

Chesapeake Utilities

This is a very safe idea for nervous investors to look at now. Chesapeake Utilities Corp. (NYSE: CPK) operates as an energy delivery company. The Delaware-based company operates through two segments.

Its Regulated Energy segment has natural gas distribution operations in central and southern Delaware, Maryland’s eastern shore, and Florida, as well as regulated natural gas transmission in the Delmarva Peninsula, Ohio and Florida, and regulated electric distribution in northeast and northwest Florida.

The Unregulated Energy segment engages in propane operations in the Mid-Atlantic region, North Carolina, South Carolina and Florida, as well as in unregulated natural gas transmission/supply operations in central and eastern Ohio. It engages in generation of electricity and steam; provision of compressed natural gas, liquefied natural gas and renewable natural gas transportation and pipeline solutions primarily to utilities and pipelines in the eastern United States; and project development activities.

This segment is also involved in the provision of other unregulated services, such as energy-related merchandise sale and heating, ventilation and air conditioning, and plumbing and electrical service.

Shareholders currently receive a 1.75% yield, and the dividend is expected to rise from $0.535 per share to $0.59. Royal Bank of Canada has a Sector Perform rating and a $133 target price. The consensus target is $135.43, and shares closed on Monday at $123.50.

Travel has returned to pre-pandemic levels and, with the summer vacation season right around the corner, this stock looks poised to move higher. Marriott International Inc. (NYSE: MAR) operates, franchises and licenses hotel, residential, timeshare and other lodging properties in 138 countries and territories.

Its 30 banners include JW Marriott, The Ritz-Carlton, Ritz-Carlton Reserve, W Hotels, The Luxury Collection, St. Regis, Edition, Bvlgari, Renaissance, Le Méridien, Marriott, Sheraton, Westin, Four Points, Delta Hotels by Marriott, Autograph Collection, Tribute Portfolio, Marriott Hotels, Marriott Executive Apartments, Marriott Vacation Club, Gaylord Hotels, Design Hotels, Courtyard, Residence Inn, Fairfield, SpringHill Suites, TownePlace Suites, Protea Hotels, Aloft Hotels, AC Hotels by Marriott, Element Hotels, and Moxy Hotels.

Shareholders now receive a 0.95% yield, but the dividend is expected to increase by over 10%, from $0.40 per share to $0.45. Morgan Stanley’s Overweight rating is accompanied by a $197 target price. The consensus target is just $181.29, and Marriott International stock closed on Monday at $170.14.

PepsiCo

This top consumer staples company will be supplying the goods for summer parties and picnics. PepsiCo Inc. (NYSE: PEP) operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay’s and Ruffles potato chips; Doritos, Tostitos and Santitas tortilla chips; and Cheetos cheese-flavored snacks, branded dips and Fritos corn chips.

The Quaker Foods North America segment provides Quaker oatmeal, grits, rice cakes, natural granola and oat squares, as well as Pearl Milling mixes and syrups, Quaker Chewy granola bars, Cap’n Crunch cereal, Life cereal and Rice-A-Roni side dishes.

Its North America Beverages segment offers beverage concentrates, fountain syrups and finished goods under the Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Tropicana Pure Premium, Sierra Mist and Mug brands, as well as ready-to-drink tea and coffee, and juices.

Investors in PepsiCo stock receive a 2.41% dividend. The company is expected to raise the dividend to $1.24 per share from $1.15. Morgan Stanley has an Overweight rating, and its $210 price target compares with a consensus target of $200.02 and Monday’s close at $191.68.

While it is more off the radar, this company supplies critical technologies needed in multiple applications. Watts Water Technologies Inc. (NYSE: WTS) products and solutions manage and conserve the flow of fluids and energy into, through and out of buildings in the commercial, industrial and residential markets in the Americas, Europe, the Asia-Pacific and elsewhere.

The company’s residential and commercial flow control and protection products include backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves and leak detection and protection products for plumbing and hot water applications.

Watts also provides heating, ventilation and air conditioning and gas products, comprising commercial boilers and water heaters and heating solutions; hydronic and electric heating systems for underfloor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless steel connectors for natural and liquid propane gas in commercial food service and residential applications.

In addition, the company offers drainage and water reuse products, such as drainage products and engineered rainwater harvesting solutions for commercial, industrial, marine and residential applications. Its water quality products include point-of-use and point-of-entry water filtration, conditioning and scale prevention systems for commercial, marine and residential applications.

The company sells its products to plumbing, heating and mechanical wholesale distributors and dealers, as well as original equipment manufacturers, specialty product distributors, do-it-yourself and retail chains, and wholesalers and private label accounts.

The current dividend yield is 0.75%. The $0.30 per share payout is expected to increase to $0.33. StockNews.com has a Buy rating. Its $175 target price is well above the $166 consensus target. The stock closed at $162.35 on Monday.

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