5 Analyst Favorite Stocks to Buy With Dividends Expected to Rise This Week

After years of a low interest rate environment, 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.

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%. That is, 10% for the increase in stock price and 3% for the dividends paid.

Five top large-cap 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 indeed raise their dividends, top analysts expect them to. Generally, the data is based on past increases in the firm’s dividend payouts.

5 Analyst Favorite Stocks to Buy With Dividends Expected to Rise This Week

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

CareTrust REIT

This is a medical property real estate investment trust that is a solid idea for those seeking income but worried about inflation. CareTrust REIT Inc. (NASDAQ: CTRE) is a self-administered, publicly traded REIT engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other health-care-related properties.

With a nationwide portfolio of long-term net-leased properties and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.

Investors currently receive a 6.12% yield. The company is expected to lift the $0.265 per share dividend to $0.280. Baird has a $25 target price on the shares, and the consensus target is $22.56. The stock traded Monday morning at $17.55.

ALSO READ: 5 ‘Strong Buy’ Nasdaq Stocks That Also Pay the Biggest Dividends in the Index

Dollar General

Shares of the low-cost retail store are offering an incredible entry point after dropping 15% since January. Dollar General Corp. (NYSE: DG) provides various merchandise products in the southern, southwestern, Midwestern and eastern United States.

The company offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, and laundry products; packaged food comprising cereals, canned soups and vegetables, condiments, spices, sugar and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer and wine.