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 an income stream, equating to total return, 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 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 companies raise their dividends, top analysts expect them to. Generally, the data is based on past increases in the firm’s dividend payouts.  

AON Plc

This stock has been on a roll and looks to continue higher. AON plc (NYSE: AON) provides a range of risk and human capital solutions worldwide.

It offers commercial risk solutions, including:

• Retail brokerage,
• Specialty solutions
• Global risk consulting
• Captives management
• Affinity programs
• Health solutions include health and benefits brokerages and healthcare exchanges.

The company also provides treaty and facultative reinsurance, as well as:

• Insurance-linked securities
• Capital raising
• Strategic advice
• Restructuring
• Mergers and acquisitions services
• Corporate finance advisory services

In addition, it offers strategic design consulting services on their retirement programs, actuarial services, and risk management services; and advice services on developing and maintaining investment programs across various plan types, including defined benefit plans, defined contribution plans, endowments, and foundations for public and private companies, and other institutions.

Shareholders are currently paid a 0.74% yield. The company is expected to raise the dividend to $0.65 per share from $0.615.

Constellation Brands

If there is any company whose products stay in style, it’s this one, which only has 7% foreign sales. Constellation Brands Inc. (NYSE: STZ), together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy.

The company provides beer primarily under these popular brands:

• Corona Extra
• Corona Premier
• Corona Familiar
• Corona Light
• Corona Refresca
• Corona Hard Seltzer
• Modelo Especial
• Modelo Negra
• Modelo Chelada
• Victoria
• Vicky Chamoy
• Pacifico

It also offers wine under:

• Cook’s California Champagne
• Kim Crawford
• Meiomi
• Mount Veeder
• Ruffino
• SIMI
• My Favorite Neighbor
• Robert Mondavi Winery
• Schrader
• The Prisoner Wine Company

Spirits are sold under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands.

Investors are currently receiving a 1.34% dividend. The company is expected to raise the dividend to $0.96 from $0.86. 

FedEx

Given the massive increase in internet shopping and sales, FedEx Corporation (NYSE: FDX) has a strong path for continued growth. The delivery giant provides transportation, e-commerce, and business services and provides transportation, e-commerce, and business services internationally and internationally.

It operates through four segments:

• FedEx Express
• FedEx Ground
• FedEx Freight
• FedEx Services

The FedEx Express segment offers express transportation, small-package ground delivery, freight transportation, and time-critical transportation services.

The FedEx Ground segment provides small-package ground delivery services.

The FedEx Freight segment offers less-than-truckload freight transportation services.

The FedEx Services segment provides:

• Sales
• Marketing
• Information technology
• Communications
• Customer service
• Technical support
• Billing and collection
• Back-office support services

In addition, the company offers supply chain management solutions, air and ocean cargo transportation, specialty transportation, customs brokerage, and trade management tools and data.

Shareholders currently receive a 1.84% yield. The company is expected to raise the dividend to $1.40 per share from $1.26.

H.B. Fuller

While this stock is very off the radar, its shares have traded sideways since last November and look poised to move higher. H.B. Fuller Company (NYSE: FUL) formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products.

It operates through three segments:

• Hygiene Health and Consumable Adhesives
• Engineering Adhesives
• Construction Adhesives

The Hygiene, Health, and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products, for applications in various markets, including packaging, converting nonwovens, hygiene, and health and beauty.

The Engineering Adhesives segment produces and supplies high-performance industrial adhesives, including reactive, light-cure, two-part liquids, polyurethane, silicone, film, and fast-cure products, to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets.

The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, air conditioning, and insulation applications, as well as caulks and sealants for the consumer market and professional trade.

Investors currently receive a 1.06% yield. The company is expected to raise the dividend to $0.22 per share from $0.205.

QUALCOMM

This technology giant has been on fire and should continue to trade higher. QUALCOMM Incorporated (NASDAQ: QCOM) engages in developing and commercializing foundational technologies for the wireless industry worldwide.

It operates through three segments:

• Qualcomm CDMA Technologies (QCT)
• Qualcomm Technology Licensing (QTL)
• Qualcomm Strategic Initiatives (QSI)

The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for wireless voice and data communications, networking, computing, multimedia, and position location products.

The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights applicable in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE, and OFDMA-based 5G standards and their derivatives.

The QSI segment invests in early-stage companies in various industries, including :

• 5G
• Artificial intelligence
• Automotive
• Consumer
• Enterprise
• Cloud, IoT
• Extended reality,
• Investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities and convertible debt instruments

It also provides development, other services, and related products to the United States government agencies and their contractors.

Shareholders are currently paid a 1.87% yield. The company is expected to raise the dividend to $0.85 per share from $0.80.

Five top companies, 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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