24/7 Wall St. Insights
- Companies that raise their dividends regularly are outstanding ideas for investors.
- Dividend stocks will be in favor as interest rates trend lower over the next two years.
- Grab this free report now: Access 2 legendary, high-yield dividend stocks Wall Street loves
After over a decade 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 top companies are expected to raise their dividends this week, and one is Wall Street’s favorite passive income stock, so we screened our 24/7 Wall St. research universe and found that all are rated Buy at some of the top brokerage firms. 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. Furthermore, dividend investors will love this free report.
Altria
Altria is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products.
This tobacco company offers value investors a rich 8.46% dividend and is touted across Wall Street as one of the top passive income stocks for investors to own now. Altria Group Inc. (NYSE: MO | MO Price Prediction) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
The company provides cigarettes primarily under the Marlboro brand, as well as:
- Cigars and pipe tobacco, principally under the Black & Mild brand
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings but still leaves a hefty 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Shareholders are currently paid a huge 7.74% yield. The company is expected to raise the dividend to $1.02 per share from $0.98.
Avnet
Avnet is a global leader in electronic components and services, guiding makers and manufacturers from design to delivery.
This top stock has been on a roll and is close to breaking out to a new 52-week high. Avnet Inc. (NASDAQ: AVT) distributes electronic component technology.
The company operates through two segments:
- Electronic Components
- Farnell
The Electronic Components segment markets, sells, and distributes semiconductors, interconnect, passive, electromechanical, and other integrated components from electronic component manufacturers.
It also offers design chain support, which provides:
- Engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training
- Supply chain solutions, which provide support and logistical services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers.
In addition, this segment provides embedded solutions, such as:
- Technical design
- Integration, and assembly of embedded products, systems, and solutions primarily for industrial applications
- Embedded display solutions comprising touch and passive displays
- Develops and manufactures standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements.
This segment serves various markets, such as automotive, medical, defense, aerospace, telecommunications, industrial, and digital editing.
The Farnell segment distributes kits, tools, electronic and industrial automation components, and test and measurement products to engineers and entrepreneurs. It has operations in the Americas, Europe, the Middle East, Africa, and Asia.
Investors are currently receiving a 2.27% dividend. The company is expected to raise the payout to $0.33 from $0.31.
Intuit
Intuit is an American multinational business software company that specializes in financial software
This company hits all the metrics in the technology sector for accounting needs. Intuit Inc. (NASDAQ: INTU) provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and elsewhere.
The company operates in four segments:
- Small Business & Self-Employed
- Consumer
- Credit Karma
- ProTax
The Small Business & Self-Employed segment provides QuickBooks services which include:
- Financial and business management online services and desktop software
- Payroll solutions
- Time tracking
- Merchant payment processing solutions
- Financing for small businesses
- Mailchimp services, such as e-commerce, marketing automation, and customer relationship management
This segment also offers QuickBooks online services and desktop software solutions comprising:
- QuickBooks Online Advanced, a cloud-based solution
- QuickBooks Enterprise, a hosted solution
- QuickBooks Self-Employed solution
- Payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services
- Financial supplies and financing for small businesses, as well as electronic filing of federal and state income tax returns
The Consumer segment provides TurboTax income tax preparation products and services.
The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products.
The ProTax segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services.
It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels.
Shareholders currently receive a 0.55% yield. The company is expected to raise the dividend to $1.03 per share from $0.90. A sweet 14% increase.
Six Magnificent Dividend Stocks to Buy Now and Hold Forever
Three top companies, all rated Buy and analyst favorites across Wall Street, are expected to raise their dividends to shareholders this week. Not only is increasing dividends and returning capital to investors very prudent, 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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