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. 

This week, we’ve identified four top Wall Street favorites expected to increase their dividends. Our research within the 24/7 Wall St. universe reveals that these stocks are all rated as ‘Buy’ by reputable Wall Street firms. While there’s always a chance that not all companies will raise their dividends, leading analysts anticipate these four to do so, based on their past dividend payout increases.  

Kinder Morgan 

This is one of the top energy stocks and remains a favorite across Wall Street. It pays a dependable 6.55% dividend. Kinder Morgan, Inc. (NYSE: KMI) is an energy infrastructure company in North America. The company operates through Natural Gas, Products, Terminals, and CO2 segments.

The Natural Gas Pipelines segment:

• Owns and operates the interstate and intrastate natural gas pipeline and underground storage systems
• Natural gas gathering systems and natural gas processing and treating facilities
• Natural gas liquids fractionation facilities and transportation systems
• Liquefied natural gas liquefaction and storage facilities

The Products Pipelines segment owns and operates refined petroleum products, crude oil and condensate pipelines, associated product terminals, and petroleum OKEpipeline transmit facilities.

The Terminals segment owns and operates liquids and bulk terminals that store and handle various commodities, including:

• Gasoline
• Diesel fuel
• Chemicals
• Ethanol
• Metals
• Petroleum coke 
• Owns tankers

Lastly, the CO2 segment produces, transports, and markets CO2 to recover and produce crude oil from mature oil fields and owns interests in/or operates oil fields and gasoline processing plants, as well as a natural oil pipeline system in West Texas. It holds and runs approximately 83,000 miles of pipelines and 144 terminals.

Shareholders are currently paid a 6.23% yield. The company is expected to raise the dividend to $0.29 per share from $0.2825.

Johnson & Johnson

With a diverse product base and a very popular and solid brand, Johnson & Johnson (NYSE: JNJ) is among the most conservative big pharmaceutical plays, and 44% of fund managers own the stock. Johnson & Johnson (NYSE: JNJ) researches, develops, manufactures, and sells various products in the healthcare field worldwide.

The company’s Innovative Medicine segment offers products for various therapeutic areas, such as:

• Immunology, including rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis
• Infectious diseases comprising HIV/AIDS;
• Neuroscience, consisting of mood disorders, neurodegenerative disorders, and schizophrenia
• Oncology, such as prostate cancer, hematologic malignancies, lung cancer, and bladder cancer
• Cardiovascular and metabolism, including thrombosis, diabetes, and macular degeneration
• Pulmonary hypertension comprising pulmonary arterial hypertension

Its MedTech segment provides Interventional Solutions, including:

• Electrophysiology products to treat heart rhythm disorders
• The heart recovery portfolio, which includes technologies to treat severe coronary artery disease requiring high-risk PCI or AMI cardiogenic shock
• Neurovascular care that treats hemorrhagic and ischemic stroke. this segment also offers an orthopedics portfolio that includes products and enabling technologies that support hips, knees, trauma, spine, sports, and others
• Surgery portfolios comprising advanced and general surgery technologies, as well as solutions for breast aesthetics, ear, nose, and throat procedures
• Contact lenses under the ACUVUE Brand
• TECNIS intraocular lenses for cataract surgery

Investors are currently receiving a 3.23% yield. The company is expected to raise the dividend to $1.25 from $1.19.

Sonoco

With a global footprint and products always in demand, this is an excellent idea for investors now. Sonoco Products Company (NYSE: SON), together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in North and South America, Europe, Australia, and Asia.

The company operates in two segments:

• Consumer Packaging
• Industrial Paper Packaging segments

The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays and enclosures; and high-barrier flexible packaging products.

The Industrial Paper Packaging segment provides paperboard tubes, cones, and cores, paper-based protective packaging products, and uncoated recycled paperboard products.

The company also offers various packaging materials, including plastic, paper, foam, and other specialty materials.

Sonoco Products Company sells its products in multiple markets, which include:

• Paper
• Textile
• Film
• Food,
• Packaging,
• Construction
• Wire and cable

Shareholders are currently paid a 3.62% yield. The company is expected to raise the dividend to $0.53 from $0.51.

Travelers

This insurance giant is an excellent bet in a volatile, pricey stock market. Travelers Companies, Inc. (NYSE: TRV) provides a range of commercial and personal property, as well as casualty insurance products and services, to businesses, government units, associations, and individuals in the United States and internationally.

The company operates through three segments:

• Business Insurance,
• Bond & Specialty Insurance
• Personal Insurance.

The Business Insurance segment offers these products:

• Workers’ compensation,
• Commercial automobile and property
• General liability
• Commercial multi-peril
• Employers’ liability
• Public and product liability
• Professional indemnity
• Marine
• Aviation,
• Onshore and offshore energy
• Construction
• Terrorism,
• Personal accident
• Kidnap and ransom

This segment operates through select accounts, which serve:

• Small businesses
• Commercial accounts, which serve mid-sized businesses
• National accounts, which serve large companies
• National property and other that serve large and mid-sized customers, the commercial trucking industry, and agricultural businesses.

It also markets and distributes its products through brokers, wholesale agents, and program managers.

The Bond & Specialty Insurance segment provides surety, fidelity, management, professional liability, other property and casualty coverages, and related risk management services through independent agencies and brokers.

The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners’ insurance, to individuals through independent agencies and brokers.

Shareholders are currently paid a 1.81% yield. The company is expected to raise the dividend to $1.05 per share from $1.00.

Four 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.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.