After years of a low-interest rate environment, which has reversed in a big way over the last 22 months, many investors continue to turn to equities not only for 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 influential investment strategies.

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.

Five top large-cap 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’s always possible that not all of the five do not raise their dividends, top analysts expect them to, and generally, the data is based on past increases in the firm’s dividend payouts.

General Motors

The venerable automotive giant is a solid stock for growth and income investors. General Motors Company (NYSE: GM) designs, builds and sells trucks, crossovers, cars, and automobile parts and provides software-enabled services and subscriptions worldwide.

The company operates through:

• GM North America
• GM International, Cruise
• GM Financial segments

It markets its vehicles primarily under these brand names:

• Buick
• Cadillac
• Chevrolet
• GMC
• Baojun
• Wuling

The company also sells trucks, crossovers, cars, and automobile parts through retail dealers, distributors and dealers, and fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments.

In addition, it offers a range of after-sale services through a dealer network, such as:

• Maintenance
• Light repairs
• Collision repairs
• Vehicle Accessories
• Extended service warranties
• Safety and security services for retail and fleet customers, including automatic crash response, emergency services, roadside assistance, crisis assist, stolen vehicle assistance, and turn-by-turn navigation

Further, the company provides connected services comprising:

• Mobile applications for owners to remotely control their vehicles and electric vehicle owners to locate charging stations
• On-demand vehicle diagnostics
• GM Smart Driver
• Amazon Alexa in-vehicle voice
• Google’s Voice Assistant
• Navigation and app ecosystem
• Connected navigation,
• SiriusXM with 360L
• 4G LTE wireless connectivity

Investors are currently receiving a 1.02% dividend. The company is expected to raise the dividend to $0.12 from $0.09.

Moody’s

While not one of Warren Buffett’s more well-known stocks, this company remains an industry leader. Moody’s Corporation (NYSE: MCO) is an integrated risk assessment firm worldwide.

It operates in two segments:

• Moody’s Investors Service
• Moody’s Analytics.

The Moody’s Investors Service segment publishes credit ratings.

It provides assessment services on:

• Various debt obligations
• Programs and facilities issue such obligations as multiple corporate, financial institution, and governmental obligations and structured finance securities.

Its ratings are disseminated through press releases to the public through electronic media, including the Internet and real-time information systems used by securities traders and investors.

The Moody’s Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets and offers:

• Subscription-based research, data
• Analytical products comprising credit ratings
• Credit Research
• Quantitative credit scores and other analytical tools
• Economic research and forecasts
• Business intelligence
• Company information products
• Commercial real estate data
• Analytical tools
• Learning solutions

Investors are currently paid a 0.79% dividend, expected to be bumped to $0.85 from $0.77.

Old Dominion Freight Line

The country doesn’t run without shipping giants like this leading company. Old Dominion Freight Line, Inc. (NASDAQ: ODFL) operates as a less-than-truckload (LTL) motor carrier in the United States and North America.

It provides regional, inter-regional, and national LTL services, including expedited transportation.

The company also offers various value-added services, such as:

• Container drayage
• Truckload brokerage
• Supply chain consulting

As of December 31, 2022, it owned and operated:

• 11,274 tractors
• 31,252 linehaul trailers
• 14,315 pickup and delivery trailers
• 44 fleet maintenance centers
• 255 service centers

Investors are currently receiving a slight 0.41% dividend. The company is expected to raise the dividend in a big way to $0.50 from $0.40.

Oshkosh

This off-the-radar company may hold some of the most significant upside potential for investors. Oshkosh Corporation (NYSE: OSK) Designs, manufactures and markets specialty trucks and access equipment vehicles worldwide.

Its Access Equipment segment:

• Designs and manufactures aerial work platforms and telehandlers for use in construction, industrial, and maintenance applications
• Offers financing and leasing solutions, including rental fleet loans, leases, and floor plan and retail financing
• Towing and recovery equipment, which includes carriers, wreckers, and rotators, as well as provides equipment installation and sale of chassis and service parts

The defense segment manufactures and sells heavy, medium, and light tactical wheeled vehicles and related services for the Department of Defense and snow removal vehicles for airports and military bases.

Its Fire & Emergency segment offers:

• Custom and commercial firefighting equipment
• Fire apparatus and emergency vehicles, including pumpers, aerial platforms, ladder and tiller trucks, and tankers
• Light, medium, and heavy-duty rescue vehicles
• Wildland rough terrain response
• Bomb squad, hazardous materials control vehicles

Additionally, this segment offers aircraft rescue and firefighting vehicles for airports and broadcast vehicles, including electronic field production trailers and satellite and electronic news gathering vehicles for broadcasters and command trucks.

Its Commercial segment designs and manufactures:

• Refuse collection vehicles for the waste services industry
• Front- and rear-discharge concrete mixers for the concrete ready-mix industry
• Field service vehicles and truck-mounted cranes for construction, equipment dealers, building supplies, utility, tire service, railroad, and mining industries.

Shareholders are currently paid a 1.48% yield. The company is expected to raise the dividend to $0.45 per share from $0.41.

Piper Sandler

This is a regional brokerage firm that has significant upside potential. Pipe Sandler Companies (NYSE: PIPR) operates as an investment bank and institutional securities firm that serves corporations, private equity groups, public entities, non-profit entities, and institutional investors in the United States and internationally.

The company offers investment banking and institutional sales, trading, and research services for various equity and fixed-income products.

The company provides:

• Advisory services, such as mergers and acquisitions
• Equity private placements
• Debt and restructuring advisory
• Raises capital through equity and debt financings
• Underwrites municipal issuances
• Offers municipal financial advisory and loan placement services
• Various over-the-counter derivative products.

Piper Sandler also offers public finance investment banking services focusing on state and local governments, cultural and social service non-profit entities, and the education, healthcare, hospitality, senior living, and transportation sectors.

In addition, the company provides equity and fixed-income advisory and trade execution services for institutional investors, corporations, and government and non-profit entities.

Piper Sandlers is also involved in alternative asset management funds, merchant banking, and healthcare to invest firm capital and manage capital from outside investors.

Investors are currently receiving a 1.02% dividend. The company is expected to raise the dividend to $0.12 from $0.09.

Five top companies rated Buy across Wall Street and are expected to lift the dividends they pay shareholders. Not only is increasing dividends and returning capital to investors necessary, 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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