These stocks already generate high annual income, so you need just a little growth to reach 10%-plus in annual returns
Today we’re going to take a look at 10 dividend stocks that
look like solid bets to generate double-digit total returns every year, or at
least every year on average.
Claiming a stock will deliver a double-digit return every
year is a bold statement. After all, the “Siegel constant,” named after Wharton
Professor Jeremy Siegel, says the stock market as a whole delivers total
returns of around 7% per year after inflation. So, a stock that delivered a
double-digit return every year would be one that consistently beat the market.
A 10% annual return is obviously not get-rich-quick money.
But at that rate, you’re still doubling your money every seven years, and
that’s not too shabby.
You know the old refrain: Past performance is no guarantee
of future results. I can’t promise you that every stock on the list will
deliver a double-digit return, particularly if we have weakness in the broad
market. But I can tell you this: Based on current prices and dividend yields,
these stocks are definitely priced well enough to make double-digit returns
possible, which is better than what I can say for the vast majority of other
stocks.
You’ll notice some common themes among this list of dividend
stocks to buy. They all pay dividends, and most a long history of raising those
dividends. Also, tech stocks or other companies I see as being at risk of
disruption are also mostly left off the list.
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