4 Analyst Favorite Blue Chip Companies Are Expected To Raise Their Dividends This Week

After years of a low interest rate environment, which has been trending higher over the last year, 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 always 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%. 10% for the increase in stock price and 3% for the dividends paid.

Four 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 three are rated Buy at some of the top firms on Wall Street. While it’s always possible that not all of the four 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’s important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.


This top company makes the parts and components for the trucking industry to keep the country moving. Cummins Inc. (NYSE: CMI) designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and New Power. The company offers diesel and natural gas powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers new parts and services, as well as remanufactured parts and engines.

Cummins also provides power generation systems, high-horsepower engines, heavy and medium-duty engines, application engineering services, custom-designed assemblies, retail and wholesale aftermarket parts, and in-shop and field-based repair services. In addition, the company offers emission solutions; turbochargers; air and fuel filters, fuel water separators, lube and hydraulic filters, coolants, fuel additives, and other filtration systems; and electronic control modules, sensors, and supporting software, as well as new, replacement, and remanufactured fuel systems.

Further, it provides automated transmissions; standby and prime power generators, controls, paralleling systems, and transfer switches, as well as A/C generator/alternator products under the Stamford and AVK brands; and electrified power systems with components and subsystems, including battery, fuel cell, and hydrogen production technologies. Additionally, it offers filtration, aftertreatment, control systems, air handling systems, automated transmissions, electric power generation systems, and batteries.

Cummins Investors are currently paid a very reasonable dividend of 2.55%. It is expected the company will raise the dividend to $1.66 per share from $1.57.

Credit Suisse has an Outperform rating and a $291 target price objective. The consensus target across Wall Street is posted at $256.93. The shares closed trading Friday at $245.80.

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