10 Dividend Stocks That Will Double Your Money

Is it possible to double your money – quickly – buying safe dividend stocks? You bet. Let me explain how…

“Basic” income investors are enamored with higher current yields. These are OK for payouts today, but they’re not going to get us 100%+ gains.

For triple-digit profits we must pay attention to the underrated dividend hike. These raises not only increase the yield on your initial investment, but they trigger stock price increases, too.

For example, if a stock pays a 3% current yield and then hikes its payout by 10%, it’s unlikely that its stock price will stagnate for long. Investors will see the new 3.3% yield and buy more shares. They’ll drive the price up, and the yield back down – eventually towards 3%.

This is why many Dividend Aristocrats don’t pay high current yields: Their prices just rise too fast. Just look at A.O. Smith (AOS), which perpetually yields in the low 1% range. The low yield isn’t from a lack of dividend hikes – in fact, AOS keeps hiking its payout more aggressively over time. But investors just keep chasing the stock too high!

A.O. Smith (AOS): A Boring Company With a Breathtaking Trajectory

What a “problem” to have!

If you’re looking for a “dividend stock double” to bring you secure gains of 100% or better, consider these ten payers. Don’t be fooled by their modest current yields – these dividends will probably always look modest thanks to soaring share prices.

American States Water (AWR)
Dividend Yield: 1.7%

I’ll start off with American States Water (AWR) delivers water up and down California – an absolutely necessary service that its 1 million-plus customers can’t go without. That results in a steady stream of revenues and income – profits that tick higher over time as American States Water slowly raises rates. It’s a well-worn utility story.

What’s a little less common about AWR is its absurd growth.

American States Water (AWR): Is This a Utility … Or a Chip Stock?

Up next for AWR? The company likely will announce its 64th consecutive dividend increase sometime in very early August.

Dover Corporation (DOV)
Dividend Yield: 2.6%

American States Water may have an impressive dividend-growth streak, but it’s not actually a member of the Dividend Aristocrats given its small-cap nature and exclusion from the S&P 500. But Dover (DOV) is full-fledged dividend royalty, touting an equally impressive streak of 62 consecutive years – the longest streak among Aristocrats and the third-longest among all publicly listed companies.

Dover is a widely diversified industrial company whose products range from product-tracing technologies to bench tools to chemical dispensing systems to commercial refrigeration units. That kind of product breadth has allowed the company to weather even the worst economic environments with the dividend not only intact, but growing each and every year.

As a note: A look at a Dover chart shows a big dip in May. Don’t worry. This wasn’t the effect of a nasty earnings surprise, but instead a reflection of the spinoff of Apergy (APY), its oil-and-gas equipment-and-technology business.

Consecutive dividend hike No. 63 should be announced sometime during the first full week in August.

First American Financial Corporation (FAF)
Dividend Yield: 3.0%

Trying to get decent yield from a financial stock is like trying to wring blood from a monkey wrench. The Financial Select Sector SPDR Fund (XLF) exchange-traded fund of banks, insurers and other financial companies yields a miserable 1.6%. That’s why it’s refreshing to come across companies such as First American Financial Corporation (FAF).

FAF sounds like a bank, but it’s actually a top title insurance and settlement services provider used by real estate and mortgage companies. And, like similar companies, it offers a wide array of other products, from home warranties to property and casualty insurance to even investment advice.

First American’s dividend increase schedule has been a little variable over the past five years, but it manages to get the job done at some point. The best bet for FAF’s next increase announcement is sometime in mid-August, with the payout itself coming a month later.

Brinker International (EAT)
Dividend Yield: 3.1%

Brinker International (EAT) isn’t nearly as recognizable a name as the brands that it owns – specifically, Chili’s and Maggiano’s Little Italy restaurants, which combine for more than 1,600 locations worldwide.

Brinker had been struggling mightily amid the “restaurant recession” of the past few years that saw giant chain restaurants but together a huge string of monthly same-store sales declines. Brinker itself delivered a couple disappointing earnings reports that sent investors fleeing EAT shares.

That said, the company is back on the rebound in 2018 as various changes, including a heavily scaled-back menu, are bearing fruit. Brinker scored a beat in its most recent quarterly report (in May), and while same-store sales dipped a bit, the company still is tracking a potential growth year in comps.

Brinker also has been upgrading its dividend for several years now, and given a payout ratio of just more than half its profits, chances are EAT investors will enjoy another dividend-hike announcement sometime in the middle of August.

Chili’s Parent Brinker International (EAT) Tries to Reach Recovery Road

Federal Realty Investment Trust (FRT)
Dividend Yield: 3.2%

Federal Realty Investment Trust (FRT) is a virtual unicorn – a real estate investment trust (REIT) in the Dividend Aristocrats. In fact, at the moment, it’s the only real estate play in the whole hallowed group.

Despite what the name would imply, Federal Realty isn’t a government-real-estate play – it’s a mixed-use retail REIT that focuses on high-end properties in Washington, D.C.; Boston; San Francisco and Los Angeles. To give you an example, FRT is responsible for Pike & Rose – a commercial/dining/living mixed-use development in North Bethesda, Maryland, that includes tenants such as Pinstripes (a bowling-and-bocce bistro), L.L. Bean, REI Co-Op and four apartment-and-condominium communities.

FRT has grown its dividend every year since 1972, from 7.3 cents to its current payout of $1 per share. The next hike should come in either very early August or the tail end of July.

Healthcare Trust of America (HTA)
Dividend Yield: 4.5%

Healthcare Trust of America (HTA) is one of many “Boomer” plays – this one dubbing itself the “largest dedicated owner & operator of medical office buildings in the country.” Specifically, it owns 432 medical office buildings across 33 states covering just about every region in the U.S. minus “Big Sky” country.

I love niches, I love specialties, and HTA has a fairly interesting one. This REIT has specifically targeted between 20 and 25 “gateway markets” that have top university and medical institutions, which means they’re more likely to be hotbeds of future facility growth. That’s smart.

The downside is, so far, while it has led to excellent growth in funds from operations (FFO), it hasn’t led to riches for shareholders, who are sitting on essentially flat performance since 2015.

Healthcare Trust of America (HTA): What Is Wall Street Waiting For?

But HTA is among a few stocks that have seen recent insider buying – a promising sign of confidence from people who are in the know and have real skin in the game. Maybe that’ll be the kick in the pants the stock needs.

Investors also could use a more robust dividend bump than they’re accustomed to. Healthcare Trust’s income growth has been glacial – just 6.1% total over the past five years. Look to see if management is any more generous sometime during early August or very early July, when the company is likeliest to announce its next dividend top-off.

Verizon (VZ)
Dividend Yield: 4.6%

Telecom titan Verizon (VZ) has been a sleepy disappointment in 2018, off 5% year-to-date against a higher market. You can thank a few things for that – an uber-competitive pricing environment for telcos, an earnings disappointment at the beginning of the year, and sluggishness in its Fios video offerings.

It could be worse. AT&T (T) is off by about 15% as Wall Street voices its skepticism over the Time Warner acquisition.

Verizon remains a stable dividend play, however, delivering a yield well north of 4% on a payout-growth streak of 11 years. No. 12 likely will be announced late in August or in the first couple days of September.

Altria Group (MO)
Dividend Yield: 4.8%

We’ve been told for years that tobacco stocks would be miserable investments thanks to increasingly strict government bans on cigarette use and dwindling consumers as anti-smoking campaigns continue to take root. Yet Marlboro maker Altria Group (MO) mostly managed to swim upstream for many years.

But the stock has seemingly come up against a ceiling, peaking a couple of times in 2017 before succumbing to an eventual downtrend. Altria’s earnings report from April tells a lot of the tale – the company still is squeezing out ever-higher profits, at $1.9 billion versus $1.4 billion in the year-ago period. But sales ticked up just a half a percent, and domestic cigarette shipping volumes actually declined by more than 4%.

A 17% decline in 2018 has juiced Altria’s dividend to nearly 5%, however – but so has a dividend hike announced on March 1. That was actually outside the company’s routine, which is to announce any increases in late August. It’s very possible that the hike was The company typically

Altria actually hiked the dividend once this year, from 66 cents to 70 cents per share, but it did so away from its normal dividend-hike schedule. So Altria is actually a stock to watch here in late August – namely, to see whether the company resumes its routine with a summertime dividend improvement, or simply delivered early.

Main Street Capital (MAIN)
Dividend Yield: 5.9%

I have a love-hate relationship with Main Street Capital (MAIN)I love this business development company’s ability to execute, but I hate how expensive the stock typically is! Few BDCs are run as well as Main Street Capital, but you really have to pick your spots.

As a reminder: BDCs help finance small- and midsize businesses. In Main Street’s case, they provide capital for lower and middle-market companies. Their target company has revenues between $10 million and $150 million, and EBITDA between $3 million and $20 million, and Main Street typically will invest anywhere between $5 million and $75 million.

Main Street is one of a few good actors in the space, and its long-term performance reflects that. In fact, MAIN has nearly quadrupled the broader VanEck Vectors BDC Income ETF (BIZD) in total returns over the past five years.

Main Street Capital (MAIN) Is Among the Best in This Brutal Biz 

While many BDCs have stagnant dividends, Main Street Capital’s payout keeps ticking higher, even if it’s just by a little bit year after year. The company should announce its next set of monthly payouts at the very beginning of August or the end of July – and there should be a slightly higher number attached to them.

Buckeye Partners LP (BPL)
Distribution Yield: 14.7%

Buckeye Partners LP (BPL) might have the highest yield of any company on this list, but it’s not a product of a hyper-aggressive dividend-growth problem. BPL is earning its yield the wrong way: hemorrhaging shares. The stock is off nearly 60% since mid-2014, in fact, not rebounding with much of the rest of the energy space.

Buckeye Partners is mostly split into two parts – about half of its profits comes from domestic pipelines and terminals, while most of the rest comes from global marine terminals. Despite this diversified business, BPL keeps running into hurdles, such as losing a large storage customer in 2017.

The company has gone so far as to abandon its practice of increasing dividends every quarter, thanks to extremely tight dividend coverage. That having been said, the company still has a 22-year streak of annual dividend increases it probably wants to extend, so it’s entirely possible that Buckeye Partners will offer up a token hike in the first week of August – roughly a year since its last dividend increase.

Lock In 100%+ Dividend Growth Returns

If you want a healthy retirement portfolio, it’s absolutely vital that you stuff it with dividend growth stocks. High-yield stocks with stagnant payouts will actually lose value over time, and your regular income checks won’t stretch as far as they used to thanks to inflation drag. But dividend growth stocks will not only keep you ahead of inflation – they’ll help grow your nest egg, too!

Because, like I showed you with A.O. Smith, the very best dividend stocks will rise in line with their increasing payments.

Most people never realize this. But those of us who DO stand to profit handsomely and almost automatically!

It’s a simple three-step process:

Step 1. You invest a set amount of money into one of these “hidden yield” stocks and immediately start getting regular returns on the order of 3%, 4%, or maybe more.

That alone is better than you can get from just about any other conservative investment right now.

Step 2. Over time, your dividend payments go up so you’re eventually earning 8%, 9%, or 10% a year on your original investment.

That should not only keep pace with inflation or rising interest rates, it should stay ahead of them.

Step 3. As your income is rising, other investors are also bidding up the price of your shares to keep pace with the increasing yields.

This combination of rising dividends and capital appreciation is what gives you the potential to earn 12% or more on average with almost no effort or active investing at all.

I’ve scoured thousands of stocks out there right now, looking for the very best companies that have both rising dividends and strong buyback programs in place … the kind of stocks that could easily spin off annual total returns of 12%, 17%, even 25% or more … doubling your money in very short order.

Right now, at this very moment, there are 7 in particular that I think you should consider buying.

They stand to do well no matter what the broad market does … regardless of what happens in Washington … and irrespective of interest rate trends.

Editor's Note: The stock market is way up – and that’s terrible news for us dividend investors. Yields haven’t been this low in decades! But there are still plenty of great opportunities to secure meaningful income if you know where to look. Brett Owens' latest report reveals how you can easily (and safely) rake in 8%+ dividends and never worry about drawing down your capital again. Click here for full details!

10 Strong Buy Stocks for Under $10

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Just because a stock is cheap doesn’t mean you should have to compromise on quality. These 10 Strong Buy stocks tick all the boxes. True, they are all trading for under $10, but they also represent compelling investing opportunities based on far more than just their price. I used TipRanks’ stock screener to purposefully scan for stocks with a Strong Buy consensus rating from analysts and top analysts alike. These are stocks with a bullish Street outlook based only on the last three months of ratings.

I then ordered the results by price in order to delve deeper into the cheaper stock results. I am confident that these 10 stocks provide intriguing investing opportunities for investors. You don’t need to spend over $1,000 on a large-cap stock with a big name to generate serious investing returns. I hope these stellar stock ideas will show you why.

Let’s take a closer look now:

Strong Buy Stocks: Rigel Pharmaceuticals (RIGL)

Strong Buy Stocks: Rigel Pharmaceuticals (RIGL)

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Our first Strong Buy stock pick Rigel Pharmaceuticals (NASDAQ:RIGL) is also the cheapest. Trading at just $2.98, this biotech offers investors massive upside potential of over 165%. This would take shares to $7.90, the average analyst price target. Most recently, HC Wainwright’s Joseph Pantginis reiterated his Buy rating with a $7.50 price target.

He cites two key bullish factors supporting his rating: 1) the potential for Rigel to expand R835 into multiple autoimmune disorders, including arthritis and MS; and 2) the ramp up of newly-approved drug Tavalisse for adults with chronic immune thrombocytopenia (ITP). This is a dangerous disorder that can lead to excessive bleeding and bruising.

According to Pantginis, Tavalisse is “making early strides.” He notes that the drug is still in the “show-me” stage of launch for investors. However, the early signs are promising. The drug is priced competitively and it has the backing of a comprehensive commercial strategy. This includes educating physicians on the significant clinical benefits of Tavalisse vs. current treatments and maximizing awareness and access for patients.

Overall, five analysts have published Buy ratings on RIGL in the last three months.

Strong Buy Stocks: Glu Mobile (GLUU)

Strong Buy Stocks: Glu Mobile (GLUU)

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San-Francisco based Glu Mobile (NASDAQ:GLUU) is most famous for its slew of celebrity mobile app games. Ever heard of Kim Kardashian: Hollywood? This was GLU’s handy-work. However, the company is much more than just a one-hit wonder, according to Piper Jaffray’s Michael Olson. He has initiated coverage on GLUU with a $7.50 price target (19% upside potential). The stock is currently trading at $6.31.

“We now see a path to continued multiple expansion and margin improvement based on the changes implemented to date,” the analyst said. “While new titles are less critical for the ongoing growth of the business than was historically the case, Glu does have a solid pipeline of new games that are expected to hit in [the second half of 2018] and 2019.”

And while these new releases are encouraging, Olson is most enthusiastic about GLUU’s existing user base: “This data allows the company to better allocate resources to content updates that will drive monetization; it also creates a widening competitive barrier to entry vs. many other mobile developers.”

Right now, four analysts have Buy ratings on the stock. This is based only on ratings from the last three months.

Strong Buy Stocks: Resonant (RESN)

Strong Buy Stocks: Resonant (RESN)

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Small-cap tech stock Resonant (NASDAQ:RESN) is a designer of filters for radio frequency (RF) front-ends for smartphones. This is basically the circuitry in mobile phones for analog signal processing. And the stock is on the cusp of big growth according to the Street.

Five-star Loop Capital analyst Cody Acree sees RESN exploding by a whopping 107%. He has initiated coverage with a Buy rating and $11 price target. “We believe the company continues to make significant fundamental customer and design win progress that should begin delivering material recurring royalties through the remainder of 2018”, writes Acree.

Specifically, he is a fan of the company’s unique Infinite Synthesized Network platform technology. This is “a software-based, high-precision modeling approach that is able to produce real-world testable results in a completed design”, explains Acree. Customers can now eliminate software design flaws before wafer production begins.

The best part is that this should prove much more “attractive to the market than the traditional method of running multiple physical iterations through a wafer fab”. Indeed, RESN boasts four recent Buy ratings from the Street. These analysts have an average price target of $8.25 (55% upside potential).

Strong Buy Stocks: Achaogen (AKAO)

Strong Buy Stocks: Achaogen (AKAO)

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Achaogen (NASDAQ:AKAO) now looks like a very compelling investing opportunity, as this cheap Strong Buy stock just got cheaper. And now is the perfect time to jump in.

AKAO develops innovative antibacterials to treat multi-drug resistant infections. At the end of June its Zemdri drug received regulatory approval for the treatment of complicated urinary tract infections. However, this prompted a sell-off. Investors were disappointed that the drug did not also receive approval for CRE bacteria infections.

But analysts quickly reiterated their support of AKAO, calling the sell-off “excessive.” “We see the sell-off in AKAO from already markedly discounted levels as overdone and see attractive opportunity”, writes Cowen & Co’s Chris Shibutani. He says this is what he expected in terms of the timing and label following the advisory review. Plus, this is by no means the end of the road for AKAO and CRE. “We expect real-world use in CRE even in the absence of a formal label given clinical/microbial data”, adds Shibutani. He reiterated his Buy rating without a price target.

However, we can see that other analysts are predicting massive upside potential of 144%. This would take AKAO from $7.78 to the $19 average price target. In total, the stock has received six buy ratings vs. just 1 hold rating in the last three months.

Strong Buy Stocks: Zynga (ZNGA)

Strong Buy Stocks: Zynga (ZNGA)

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Social game developer Zynga (NASDAQ:ZNGA) has just snapped up Gram Games for $250 million in cash. This makes the stock even more attractive to investors. London-based Gram Games has two key franchises in the hyper-casual and puzzle genres: Merge Dragons! and 1010Merge Dragons! is particularly promising with the potential to become a forever franchise.

Indeed, top Jefferies analyst Timothy O’Shea is certainly bullish on the deal. He writes: “It is another acquisition straight out of the Zynga playbook: acquire established mobile franchises at a reasonable multiple, and apply sophisticated user acquisition, analytics, and live services know-how to increase profitability and extend the life of the games.”

Even better, “The deal is immediately accretive and we think it makes sense to deploy cash towards EBITDA-generating M&A vs. leaving cash on the balance sheet.” With this in mind, he ramps up his 2019 bookings & EBITDA estimates by 9%. He also boosts his price target to $5.25 (24% upside potential) from $5 previously.

Five analysts have published Buy ratings on Zynga in the last three months, with just one analyst staying sidelined.

Strong Buy Stocks: GenMark (GNMK)

Strong Buy Stocks: GenMark (GNMK)

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GenMark Diagnostics (NASDAQ:GNMK) develops state of the art molecular diagnostic testing systems. Its eplex system has just been released and it has already won an award for medical design excellence. Right now, the system can only test for and identify the most common respiratory viral and bacterial organisms. However, other panels in development will test for blood diseases, gastrointestinal bacteria and central nervous system infections.

All eyes are currently on the recent blood disease regulatory submission. “We are positive on GNMK following the submission of its blood culture ID gram positive (BCID-GP) panel to the FDA, which comes in line with expectations”, writes top Canaccord Genuity analyst Mark Massaro. “We view GNMK’s submission to the FDA as a de-risking event.” He is now more confident that GenMark can generate meaningful ePlex revenue outside of its respiratory panel in 2019.

And long-term, the prospects are even more exciting: “We continue to believe that GNMK can penetrate the multi-billion-dollar global multiplex syndromic testing panel market with multiple ePlex test panels over time.” This five-star analyst has a $9 price target on the stock (29% upside potential). Three analysts have published recent GNMK Buy ratings with a $10.33 average price target.

Strong Buy Stocks: Ferroglobe Plc (GSM)

Strong Buy Stocks: Ferroglobe Plc (GSM)

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Ferroglobe PLC (NASDAQ:GSM) is among the world’s largest producers of silicon metal. Silicon is a critical ingredient in a host of industrial and consumer products with growing markets. In the chemical industry it is used in photovoltaic solar cells and electronic semiconductors. And aluminum manufacturers use it to improve the already useful properties of aluminum. When used with aluminum, silicon improves its flexibility, hardness and strength.

With demand dynamics on its side, the company is a bargain at just $8.30. Indeed, three analysts have published recent Buy ratings on GSM. This is with a very bullish $16.33 average analyst price target. From current levels that indicates upside potential of 97%. Plus management has just initiated an interim quarterly dividend of 6-cents-per-share (2.1% yield), reflecting confidence in the underlying business.

Strong Buy Stocks: Cleveland-Cliffs (CLF)

Strong Buy Stocks: Cleveland-Cliffs (CLF)

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From silicon let’s turn to the world of iron ore. Cleveland-Cliffs (NYSE:CLF) is buzzing right now with shares shooting up over 26% in the last three months. But this success story isn’t slowing down, in fact its just beginning. Top B. Riley FBR analyst Lucas Pipes has just ramped up his price target from $11 to $12 (41% upside potential).

He cites higher domestic steel prices, higher iron ore prices and a robust pellet premium — all of which are likely to boost 2018 EBITDA and cash-flow expectations. “Longer-term, the robust price backdrop holds the potential to improve the outlook of Cliffs’ existing domestic iron ore mines and ongoing HBI development”, writes Pipes.

And shareholders should note that capital return could be on the agenda. CLF also mentioned it may establish a dividend, but if this comes it will be in 2019. Management intends to generate about $100M in 2018 FCF while 2019 should be ~$200M. Pipes concludes: We remain upbeat on growth project, strategic direction and valuation.

Overall, CLF has received five recent buy ratings with a $10.30 average analyst price target (21% upside potential).

Strong Buy Stocks: Seres Therapeutics (MCRB)

Strong Buy Stocks: Seres Therapeutics (MCRB)

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Biotech Seres Therapeutics (NASDAQ:MCRB) is a perfect stock for any bargain hunters. The company is focused in the emerging field of microbial medicine. Basically, Seres is trying to treat infectious and inflammatory diseases by adding “good” bacteria to your digestive tract.

“We believe the company is well positioned to take advantage of their pioneering efforts in understanding microbiome biology and applying those learnings to human disease management”, writes top Cantor Fitzgerald analyst William Tanner. He has a $16 price target on the stock (73% upside potential). He isn’t concerned about regulatory setbacks as investors should “recognize that the results could provide clues as to how the course could be corrected.”

According to Tanner, SER-401 could be where the pipeline sizzle is. Seres is developing SER-401 to impact the immune response and increase the efficacy of inhibitors in cancer treatment: “Evidence has been emerging that the microbiome may play an important role in immune system modulation.” Seres plans to initiate clinical testing of SER-401 in 2018.

With four recent buy ratings, the $18 average analyst price target indicates over 95% upside potential.

Strong Buy Stocks: LendingClub (LC)

Strong Buy Stocks: LendingClub (LC)

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Our tenth cheap stock pick comes from the financial sector. U.S.-based LendingClub (NYSE:LC) is one of the first peer-to-peer lending companies. While the stock has previously given investors a choppy ride, the future looks more stable according to five-star BTIG analyst Mark Palmer. He has a $7 price target on the stock (58% upside potential).

“Investors should be more optimistic about reduced volatility in LC’s operating performance in coming quarters”, advises Palmer, adding that they should also “be less pessimistic about how the company’s marketplace lending platform would fare if a repeat of the market dislocations seen in 2016 were to occur.”

Palmer has just met with CEO Scott Sanborn who stressed how the funding model has become much more diversified. This makes the company much more resilient. “This newfound resilience was due in large part to the introduction of new sources such as securitizations and CLUB certificates — pass-through securities holding a basket of loans — that provided LC with access to a new group of large institutional investors”, explains Palmer.

LendingClub has 100% Street support right now. Five analysts have published recent Buy ratings with a $5.80 average price target (32% upside potential).

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Source: Investor Place