After years of a low interest rate environment, which has been trending higher over the past 12 months, many investors have turned to equities not only for the growth potential but also for solid and dependable dividends that help to provide a passive income stream. What this equates to is total return, which is one of the most powerful investment strategies going. While interest rates have risen, these companies still make sense for investors looking for solid growth and income potential.
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We like to remind 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.
Three top companies that are Wall Street favorites are expected to raise their dividends this week. So 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 of them do raise their dividends, top analysts expect them to, given 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.
Alexandria Real Estate Equities
This top stock has backed up nicely over the past few 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.
The trusted partner to approximately 1,000 tenants, Alexandria has a total market capitalization of $35 billion and an asset base in North America of 74.6 million square feet (SF) as of December 31, 2022, which includes 41.8 million RSF of operating properties and 5.6 million RSF of Class A properties undergoing construction, 9.9 million RSF of near-term and intermediate-term development and redevelopment projects, and 17.3 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A properties 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.
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.
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Investors currently receive a dividend of 4.33%. The company is expected to raise that dividend from $1.21 per share to $1.24.
BTIG Research’s $186 price target sits well above the $161.78 consensus price objective. The stock closed on Friday at $111.77.
NetApp
This technology stock is scheduled to report earnings on Wednesday, 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.
NetApp provides assessment, design, consulting and implementation services. It 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.
24/7 Wall St.Shareholders currently receive a 2.86% dividend. The $0.50 per share dividend is expected to rise to $0.52.
Stifel has a $75 target price for NetApp stock. The $70.33 consensus target is closer to Friday’s closing print of $69.83.
Ralph Lauren
With top fragrances and clothing lines, this is always a solid pick for investors. Ralph Lauren Corp. (NYSE: RL) designs, markets and distributes lifestyle products in North America, Europe, Asia and elsewhere.
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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.
The company’s restaurant concepts include The Polo Bar in New York City, RL Restaurant in Chicago, Ralph’s in Paris and Ralph’s Coffee concept.
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.
The current dividend yield is 2.66%. The expected increase is to $0.775 a share from $0.750.
The UBS price objective of $168 is well above the $129.67 consensus target. Friday’s final trade was for a reported $112.76 per share.
Three top companies with stocks rated Buy across Wall Street are expected to lift the dividends they pay to shareholders. 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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