After years of a low interest rate environment, which has been trending higher over the past 15 months, many investors have turned 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. While interest rates have risen, these companies still make sense for investors looking for solid growth and income potential.
We like to remind 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%: 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. 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 them do raise their dividends, top analysts expect them to, given 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.
American Tower
This wireless tower company is a top pick on Wall Street and an acknowledged industry leader. American Tower Corp. (NYSE: AMT) is one of the largest global owners and operators of wireless and broadcast communications towers.
Its portfolio includes approximately 219,000 sites in the United States, Latin America, India, Europe, and Africa. The core business for the company is leasing space on its wireless towers, primarily to wireless carriers, government agencies and broadband data providers.
On a multiple basis, its shares trade cheaper than the competition, and many top analysts around Wall Street feel the growth potential for the company remains among the best in the industry.
Investors now receive a 3.27% dividend. The company is expected to raise its $1.56 per share dividend to $1.61.
Deutsche Bank has a $245 target price on American Tower stock. The consensus target on Wall Street is $241.13, and shares closed on Monday at $193.47.
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