5 Best Stocks To Buy Now With Dividend Hikes Expected This Week – 24/7 Wall St.
After years of low interest rates, many investors have turned to stocks not only for their growth potential, but also for strong and reliable dividends, which help provide a stream of income. This equates to total return, which is one of the most powerful investment strategies.
We like to remind our readers about the impact of total return on portfolios, as it is one of the best ways to improve the chances of overall investment success. Again, total return is the combined increase in a share’s value plus dividends. For example, 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 the stock price. and 3% for dividends paid. .
Five of Wall Street’s biggest favorites are expected to raise dividends this week. So we sifted through our 24/7 research universe at Wall St. and found that all of them were rated Buy by some of the top analysts. While it’s always possible that all four of them won’t actually increase their dividends, analysts expect them to, and generally the data is based on past increases in the company’s dividend payouts. .
However, it is important to remember that no analyst report should be used to make a buy or sell decision.
American electric power
This cutting-edge utility is also a solid, dividend-paying company. American Electric Power Co. Inc. (NYSE: AEP) is one of the largest electric utilities in the United States, providing electricity to more than 5.4 million customers in 11 states.
The company ranks among the nation’s largest power producers, with nearly 38,000 megawatts of generating capacity in the United States. It also has the largest electricity transmission system in the country, a grid spanning over 40,000 miles that includes more 765 kilovolt ultra-high voltage transmission lines than all other U.S. transmission systems combined.
Many on Wall Street believe the stock is trading at a lower price than its utility peers, and they feel it deserves a premium. Top analysts also believe the company could sell production assets and buy back shares with the proceeds, which will also be accretive.
Shareholders currently receive a return of 3.55%. The company is expected to increase its dividend to $ 0.79 per share from $ 0.74.
Morgan Stanley has a price target of $ 110 on American Electric Power stock, while the consensus target is $ 97.59. The shares were trading early Monday at close to $ 83.
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