After years of a low-interest rate environment, which has reversed significantly over the last two years, many investors continue to turn to equities for growth potential and solid and dependable dividends. These help provide a passive income stream, equating to total return, one of the most powerful 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.
Three top companies that are Wall Street favorites are expected to raise their dividends this week, so we screened our 24/7 Wall St. equity 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 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.
Cal-Maine Foods
Cal-Maine Foods is the largest producer and distributor of fresh shell eggs in the United States.
This company was in the news in a big way when egg prices soared. Cal-Maine Foods Inc. (NASDAQ: CALM), together with its subsidiaries, produces, grades, packages, markets, and distributes shell eggs.
The company offers specialty shell eggs, such as nutritionally enhanced, cage-free, organic, free-range, pasture-raised, and brown eggs, under these brands:
- Egg-Land’s Best
- Land O’ Lakes
- Farmhouse Eggs
- Sunups
- Sunny Meadow
- 4Grain
It sells its products to various customers, including national and regional grocery store chains, club stores, independent supermarkets, food service distributors, and egg product consumers primarily in the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States.
Cal-Maine has a variable dividend strategy, so the quarterly payout depends on the company’s earnings. The company will report fiscal third-quarter results in early April.
Investors currently receive a 5.04% dividend on a trailing basis. The company is expected to raise the dividend to $0.554 from $0.116.
Oxford Industries
This company is an Atlanta-based global apparel company that designs, sources, markets and distributes its lifestyle branded products.
While off-the-radar for many investors, this company makes some of the most popular clothing and apparel brands. Oxford Industries, Inc. (NYSE: OXM) is an apparel company that designs, sources, markets, and distributes lifestyle and other brand products worldwide.
The company offers men’s and women’s sportswear and related products under the Tommy Bahama brand;
- Women’s and girl’s dresses and sportswear, scarves, bags, jewelry, and belts, as well as children’s apparel, swim, footwear, and licensed products under the Lilly Pulitzer brand; and
- Men, women, and kids products under the Southern Tide brand.
In addition, the company licenses the Tommy Bahama brand for various products, such as:
- Indoor and outdoor furniture
- Beach chairs
- Bedding and bath linens
- Fabrics
- Leather goods and gifts
- Headwear
- Hosiery
- Sleepwear,
- Shampoo
- Toiletries,
- Fragrances,
- Cigar accessories
- Distilled spirits
Oxford Industries licenses Lilly Pulitzer for stationery and gift products, home furnishing products, and eyewear.
The company distributes its products through southerntide.com, thebeaufortbonnetcompany.com, duckhead.com, and specialty retailers.
Oxford Industries also offers products through its:
- Retail stores
- Department stores
- Specialty stores
- Multi-branded e-commerce retailers
- Off-price retailers
- Additional retailers and e-commerce sites
It also operates brand-specific full-price retail stores, Tommy Bahama food and beverage locations, and Tommy Bahama outlet stores.
Shareholders are currently paid a 2.37% yield. The company is expected to raise the dividend to $0.75 per share from $0.65.
The TJX Companies
TJX delivers great value on ever-changing selections of high quality, fashionable, brand name and designer merchandise.
Wall Street loves this off-price retailer. TJX Companies, Inc. (NYSE: TJX | TJX Price Prediction) and its subsidiaries operate as an off-price apparel and home fashion retailer.
It has four segments:
- Marmaxx
- HomeGoods
- TJX Canada
- TJX International
The company sells family apparel, including:
- Footwear and accessories
- Home fashions, such as home basics, furniture, rugs, lighting products
- Giftware
- Soft home products
- Decorative accessories
- Tabletop, and cookware
- Expanded pet, kids, and gourmet food departments
- Jewelry and accessories; and other merchandise.
At the end of Fiscal 2023, the Company had over 4,800 stores. The company’s business spans nine countries and three continents and includes six branded e-commerce sites.
TJX Companies operate:
- T.J. Maxx and Marshalls (combined, Marmaxx),
- HomeGoods,
- Sierra, and Homesense in the U.S.
- Winners HomeSense, and Marshalls (combined, TJX Canada) in Canada
- T.K. Maxx in the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia
- HomeSense in the U.K. and Ireland
TJX Investors are currently paid a 1.34% dividend. The company is expected to lift the dividend to $0.3757 from $0.3325.
Three top companies, that analysts love and all rated Buy across Wall Street, are expected to raise their dividends to 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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