Key Points
- Companies across industrials, financials, utilities, and materials have just raised their dividends.
- Several bullish Wall Street analysts also see upside potential in these names.
- Based on dividends and Wall Street price targets, the return potential of these names ranges from 15% to 30% over the next 12 months.
Dividends are on the rise for these five U.S. stocks, and Wall Street analysts see further return potential through price appreciation.
So, what does the high-end total return potential look like for these stocks when considering rising dividends and Wall Street price targets? Let’s dive in below.
CMI: 25% Return Possible When Considering Goldman Sachs' Bullishness
First up is the approximately $48 billion industrial stock Cummins (NYSE: CMI). On July 15, Cummins announced that it would increase its quarterly dividend by 10% to $2.00 per share. This new dividend is payable on Sept. 4 to shareholders of record on Aug. 22. Overall, the stock now has a solid indicated dividend yield of just under 2.3%. That puts Cummins’ yield solidly in the top 20 among U.S. large-cap industrial stocks.
The MarketBeat consensus price target on Cummins is around $361, implying upside of only 3%. However, Goldman Sachs is notably bullish on this name, placing a $431 price target. Goldman’s target implies a much more appealing 23% upside in Cummins shares. Combined with the stock’s 2.3% dividend, the total return potential in Cummins over the next 12 months could be as high as 25%.
Wells Fargo Sees +30% Total Return Potential in Unum
Insurance provider Unum Group (NYSE: UNM) also just recently boosted its quarterly dividend by nearly 10%. The company is set to pay the new $0.46 dividend to shareholders of record as of July 25 on Aug. 15. This gives the stock an indicated yield of just under 2.3%.
Analysts also see a solid amount of upside potential in Unum, both on average and at the high end. The MarketBeat consensus price target on Unum is just over $90, implying around 11% upside. However, Wells Fargo & Company has placed a $105 target on the stock, suggesting that shares could rise by more than 29%. Including dividends, Wells Fargo’s price target suggests shares could rise by more than 31%. Additionally, most of the MarketBeat-tracked price targets updated in July signal higher upside than the consensus target. This implies that expectations are moving in a positive direction.
Susquehanna’s $215 Target on Ryder System Indicates +25% Upside
Next up is logistics company Ryder System (NYSE: R). On July 10, Ryder announced an increase to its quarterly dividend of 12%, lifting its payout to $0.91. It is payable on Sept. 19 to shareholders of record on Aug. 18. This dividend increase puts the stock's indicated yield at approximately 2.1%.
The most recent price target on Ryder comes from Susquehanna, which initiated coverage on July 15. Their $215 price target is the highest MarketBeat currently tracks and implies that shares could rise by around 26%. Adding in the dividend, the stock’s total return potential stretches to 28% over the next 12 months.
DUK: +3.5% Yield With Upside According to Goldman Sachs
Also making the list is one of America’s largest utility companies, Duke Energy (NYSE: DUK). Duke announced an approximately 1.9% increase to its quarterly dividend. The new $1.065 dividend is payable on Sept. 16 to shareholders of record at the close of business on Aug. 15. Now, the stock’s indicated dividend yield sits at a very solid 3.6%.
Goldman Sachs' $132 price target on DUK signals that more than 11% upside could be in store for Duke over the next 12 months. Thus, the stock’s dividend yield brings its total return potential for this period to around 15%.
Mizuho and WFC Place $135 Target on PPG, Indicating 20% Return Potential
Last up is PPG Industries (NYSE: PPG), an approximately $26 billion basic materials stock that just boosted its dividend by 4.4%. The company’s next $0.71 quarterly dividend is payable on Sept. 12 to shareholders of record on Aug. 11. This gives the stock a new indicated yield of just under 2.5%.
The MarketBeat consensus price target on PPG is just over $131, implying solid upside of nearly 15%. However, in July, analysts at both Mizuho and Wells Fargo released above-consensus $135 price targets on PPG. These targets signal around 18% upside potential in shares. Thus, the stock’s total return over the next 12 months could reach north of 20%.
Overall, the combination of investment income and upside potential is one that many investors covet. These names are fulfilling one part of that equation by lifting dividends. They will need to execute strongly going forward to deliver on the other.
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Companies Mentioned in This Article:| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|
| Duke Energy (DUK) | $119.77 | +1.1% | 3.49% | 19.86 | Moderate Buy | $127.25 |
| Cummins (CMI) | $344.87 | -1.6% | 2.11% | 17.16 | Hold | $361.92 |
| Unum Group (UNM) | $79.73 | -1.7% | 2.11% | 9.39 | Moderate Buy | $90.14 |
| Ryder System (R) | $168.80 | -0.7% | 1.92% | 14.72 | Moderate Buy | $179.43 |
| PPG Industries (PPG) | $114.65 | +0.1% | 2.37% | 24.55 | Moderate Buy | $131.42 |
About Leo Miller
Experience
Leo Miller has been a contributing writer for DividendStocks.com since 2024.
- Professional Background: Leo Miller is a financial writer with a background in investment research and market analysis. He has held roles as an investment research associate at Laird Norton Wetherby and as a research analyst at Sungarden Investment Publishing, where he gained hands-on experience evaluating equities and portfolio strategies.
- Credentials: He holds a Bachelor of Business Administration in Finance from the University of Washington’s Foster School of Business, a top-ranked public business school. He has passed the CFA Level II exam.
- Finance Experience: Leo began researching and investing in gold mining stocks in 2019 and started writing about finance and investing in 2021. He joined DividendStocks.com as a contributing writer in 2024, where he covers both stocks and ETFs. A strong research foundation and direct exposure to financial markets shape his perspectives.
- Writing Focus: He specializes in tech stocks, dividend-paying companies, ETFs, and value-oriented opportunities. His work emphasizes clarity, actionable insights, and education for investors at all levels.
- Investment Approach: Leo follows a disciplined, long-term investing strategy rooted in fundamental analysis, with a strong focus on economics, sector and industry research, and passive investing principles.
- Inspiration: Leo finds the stock market endlessly compelling and enjoys the challenge of separating meaningful data from noise. He’s passionate about analyzing what makes businesses stand out—and sharing those insights to guide informed investment decisions. As he puts it, “Performing strong analysis requires separating the wheat from the chaff.”
- Fun Fact: Leo credits his grandfather for sparking his interest in investing and is a lifelong animal lover.
- Areas of Expertise: Fundamental analysis, economics, industry and sector analysis
Education
Bachelor in Business Administration, Finance, Foster School of Business at University of Washington