After years of a low interest rate environment (though those rates now are trending higher faster), many investors have turned to equities, not only for the growth potential but also for solid and dependable dividends, which 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 rising, these stocks 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%. That is, 10% for the increase in stock price and 3% for the dividends paid.
Four top companies that are Wall Street favorites and outstanding ideas in today’s volatile markets are expected to raise their dividends this week. Their stocks are rated Buy at some of the top firms on Wall Street. While it is possible that not all of the three do indeed raise their dividends, top analysts expect them to, and generally the data is based on past increases in the 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.
Clorox
The stock was a big winner during the initial stages of the pandemic but has sold off big-time and is offering the best entry point in over a year. Clorox Co. (NYSE: CLX) manufactures and markets consumer and professional products worldwide.
The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex and Formula 409 brand names. It offers professional cleaning and disinfecting products under the CloroxPro, Clorox Healthcare and Clorox Total 360 brand names; professional foodservice products under the Hidden Valley brand name; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell and Rainbow Light brand names in the United States.
The Household segment provides cat litter products under the Fresh Step, Scoop Away and Ever Clean brand names; bags and wraps under the Glad brand name; and grilling products under the Kingsford and Kingsford Match Light brand names in the United States. The Lifestyle segment offers dressings, dips, seasonings and sauces, primarily under the Hidden Valley brand name. Its natural personal care products are under the Burt’s Bees brand name, and its water-filtration systems and filters are under the Brita brand name in the United States.
Clorox stock investors currently receive a 3.22% dividend. The company is expected to lift the dividend to $1.20 per share from $1.16. Citigroup has a $160 price target, well above the consensus target of $135.67. The shares closed Friday’s trading session at $143.90.
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