With interest rates rising over the past year, many investors are looking at short-term Treasury debt, as the volatile stock market has made some market participants quite nervous. However, many long-term horizon investors still turn to equities, not only for the growth potential but also for solid and dependable dividends that help to provide a passive income stream. What this equates to is total return, which is one of the most powerful investment strategies going.
We 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.
Four top large-cap 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 top firms on Wall Street.
While it is always possible that not all of the four do raise their dividends, top analysts expect them to, 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.
Korn Ferry
This stock is a great international idea for growth investors seeking to expand portfolios. Korn Ferry Inc. (NYSE: KFY) provides organizational consulting services worldwide to public and private companies, middle market and emerging growth companies, and government and nonprofit organizations.
The company provides executive search services to recruit board level, chief executive, other senior executive and general management talent of organizations. It also offers organizational strategy, assessment and succession, leadership and professional development, and total reward services.
In addition, Korn Ferry provides recruitment process outsourcing and business project, professional search and outsource recruiting solutions. The company also offers tech-enabled solutions that identify structures, roles, capabilities and behaviors to drive businesses.
Korn Ferry shareholders receive a 1.21% yield. The company is expected to lift the dividend to $0.17 per share from $0.15.
Goldman Sachs has a $64 target price, while the consensus target is $64.25. Korn Ferry stock closed over 2% higher on Monday at $50.88.
Lindsay
While somewhat off the radar, this top stock has big-time upside potential. Lindsay Corp. (NYSE: LNN) provides water management and road infrastructure products and services in the United States and internationally.
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Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
