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3 Wall Street Blue Chip Giants Likely Raising Their Dividends This Week
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After over 10 years of a low-interest rate environment, which has reversed significantly over the past 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%. That is, 10% for the increase in stock price and 3% for the dividends paid.
Three 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 the companies raise their dividends, top analysts expect them to. Generally, the data is based on past increases in the firm’s dividend payouts. Also, Dividend investors will love this free report.
The tax preparation giant offers very solid value at current trading levels and looks ready to break out to a 52-week high. H&R Block Inc. (NYSE: HRB), through its subsidiaries, provides assisted income tax return preparation and do-it-yourself (DIY) tax return preparation services and products to the general public, primarily in the United States, Canada, and Australia.
It offers assisted income tax return preparation and related services through a system of retail offices operated directly by the company or its franchisees.
The company also provides:
In addition, it offers small business financial solutions through its company-owned or franchise offices and online.
Shareholders currently receive a 2.24% yield. The company is expected to raise the dividend to $0.34 per share from $0.32.
This retail idea offers some serious total return upside potential as a contrarian play. Tapestry Inc. (NYSE: TPR) provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally.
The company operates in three segments:
It offers women’s handbags and accessories, such as:
It also offers novelty accessories, including address books, time management and travel accessories, sketchbooks, portfolios, belts, key rings, and charms.
The company also provides men’s products, which include:
In addition, it offers other products, including women’s footwear and fragrances; eyewear and sunglasses; jewelry, such as bracelets, necklaces, rings, and earrings; watches; and other women’s seasonal lifestyle apparel collections, including outerwear, ready-to-wear, and cold-weather accessories, such as gloves, scarves, and hats.
Further, the company provides kids items, housewares, and home accessories, such as fashion bedding and tableware, stationery, and gifts. It offers its products through e-commerce sites, concession shop-in-shops, wholesale, and third-party distributors under the Coach, Kate Spade, and Stuart Weitzman brand names.
Investors are currently receiving a very solid 3.66% dividend. The company is expected to raise the dividend to $0.40 from $0.35.
The king of the recreational vehicle world is offering a very enticing entry point for investors now. Winnebago Industries Inc. (NYSE: WGO) manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities.
The company operates through three segments:
It provides towable products that are non-motorized vehicles that can be towed by automobiles, pickup trucks, SUVs, or vans and are used as temporary living quarters for recreational travel, such as conventional travel trailers, fifth wheels, folding camper trailers, and truck campers under the Winnebago and Grand Design brand names.
The company also offers motorhome RVs, self-propelled mobile dwellings used primarily as temporary living quarters during vacation and camping trips or to support active and mobile lifestyles, under the Winnebago and Newmar brand names.
In addition, it offers other specialty commercial vehicles for:
Further, the company is involved in the original equipment manufacturing of parts for other manufacturers and commercial vehicles.
Shareholders are currently paid a 2.21% yield. The company is expected to raise the dividend to $0.32 per share from $0.31.
Three 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.
Best Dividend Stocks Yielding Over 10% to Buy Now
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