After years of a low interest rate environment, which is still trending higher, many investors have turned to equities not only for the growth potential but also for solid and dependable dividends that help to provide an income stream. What this equates to is total return, which is one of the most powerful investment strategies going. While interest rates are on the move higher, these companies still make sense for investors looking for solid growth and income potential.
We like to remind readers about the impact that 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. We screened our 24/7 Wall St. research universe and found that all are rated Buy at some top firms on Wall Street. While it is always possible that not all of them do raise their dividends, top analysts expect them to. Generally, the data is based on past increases in each firm’s dividend payouts.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Cintas
This company serves thousands of businesses, both small and large, across the United States. Cintas Corp. (NASDAQ: CTAS) provides corporate identity uniforms and related business services primarily in North and Latin America.
The company rents and services uniforms and other garments, including flame-resistant clothing, mats, mops and shop towels, and other ancillary items, and it provides restroom cleaning services and supplies. It also sells uniforms.
Cintas also offers first aid and safety services, and fire protection products and services. The company provides its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations.
Investors receive a dividend of 0.91%. The expected dividend hike is over 5%, from $1.15 to $1.23 per share. Deutsche Bank has a $542 target price on Cintas stock. The consensus target is $525.71 and Monday’s closing share price was $510.57.
Landstar Systems
This stock has been on fire and is trading close to a 52-week high. Landstar Systems Inc. (NASDAQ: LSTR) provides integrated transportation management solutions in North America and elsewhere.
Its Transportation Logistics segment offers a range of transportation services, including truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo, and customs brokerage. It also offers transportation services to other transportation companies, such as third-party logistics, small package and less-than-truckload service providers.
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