Lowe’s offers products for maintenance, repair, remodeling and home decorating. It provides home improvement products under the categories of kitchens and appliances; lumber and building materials; tools and hardware; fashion fixtures; rough plumbing and electrical; lawn and garden; seasonal living; paint; home fashions; storage and cleaning; flooring; millwork; and outdoor power equipment. The company also offers installation services through independent contractors in various product categories.
Top analysts have felt for some time that the company’s tool rental business, which is a $1.5 billion revenue opportunity, is a strong catalyst for multiple expansion.
Shareholders currently receive a 2.04% dividend. That dividend is expected to rise by a nickel per share to $1.10.
The BofA Securities target price is $278, while Lowe’s Companies stock has a lower $227.53 consensus target. Monday’s closing print was $203.15.
Medtronic
This medical technology giant is a solid pick for investors looking for a safe position in the health care sector. Medtronic PLC (NYSE: MDT) develops, manufactures, distributes and sells device-based medical therapies to hospitals, physicians, clinicians and patients worldwide. It operates in four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group and Diabetes Group.
The company announced in 2020 that Blackstone’s life sciences division will invest $337 million into the research and development of its diabetes device technologies. Under the terms of the agreement, Medtronic will receive funding for four diabetes R&D programs over the next several years. Medtronic’s engineering, clinical and regulatory teams will conduct the development work for the programs.
Medtronic stock comes with a 3.06% dividend, but the payout to shareholders is expected to rise to $0.73 per share from $0.68.
The $100 Wells Fargo target price compares with a consensus target of $90.59 and Monday’s close at $89.50.
These five top stocks are rated Buy across Wall Street, and the companies are expected to soon lift the dividends they pay to their shareholders. Not only is increasing dividends and returning capital to investors important, but it also shows that a company is doing well and has the earnings and cash flow strength to increase the payouts.
Originally published at 24/7 Wall St.
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