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32 Dividend Stocks That Could Double Your Money

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Growth or yield? Why choose when we can have both.
This is why we keep a close eye on serial dividend raisers. Yield is nice, but doubling our money is even better! In this spirit here are 32 dividend growers to watch in upcoming months.
REITs
Real estate investment trusts (REITs) have no equal in retirement-focused accounts. Their very structure requires them to deliver the lion’s share of their taxable income to investors as dividends. If you’re an income investor, you need to be watching this sector like a hawk (if you aren’t already).
REITs have a couple “busy seasons” for dividend-increase announcements, including February and December. But the next couple months should see a decent handful of real estate plays hike their regular dividends.
Contrarian Outlook
Dividend Spotlight: CoreSite Realty (COR): CoreSite is a datacenter REIT with 21 operation centers across eight major communications markets in the U. S. That doesn’t sound like CoreSite is casting a wide net, but each of those locations packs a serious punch, allowing the company to service more than 1,350 customers.
CoreSite’s path over the past half-year or so is similar to the rest of the market’s, swooning at the end of 2018 only to rebound through the first few months of 2019. But COR is doing it better, up 27% to soar above both the S&P 500 (+16%) and the Vanguard REIT ETF (VNQ, +18%).
Credit CoreSite’s outstanding operations. The company reported a 20.7% improvement in net income that fueled a 14.2% boom in funds from operations (FFO, an important REIT profitability metric). CoreSite paid out 15.6% more in dividends, too, but FFO growth kept the payout ratio at a perfectly manageable 82%.
Up next is a likely dividend-increase declaration in the final week of May. And if history is any indication, look for another hike to be announced in early December.
MLPs
The last time I guided you through some likely dividend raisers, I pointed out many master limited partnerships (MLPs) that improve their distributions on a quarterly basis – not once a year, but four times a year. So the list of companies on tap for April and May are pretty similar, but a couple things have changed in the space since then.
For one, Western Gas Equity Partners LP and Western Gas Partners LP have combined to become Western Midstream Partners LP (WES). This follows a slew of mergers in the MLP industry following 2018’s changes to the tax law.
Also, Andeavor Logistics LP (ANDX) announced the same distribution it had for the prior two quarters, so its quarterly hikes appear to be a thing of the past.
Contrarian Outlook
Dividend Spotlight: Delek Logistics Partners LP (DKL): I wouldn’t be surprised if this is the first time you’ve read about small-cap Delek Logistics Partners LP. This roughly $815 million MLP was formed by Delek US Holdings (DK) just a few years ago to hold various energy assets.
For instance, its Pipelines/Transportation segment includes roughly 805 miles of crude and product transportation pipelines, a 600-mile crude oil gathering system in Arkansas, and storage facilities with 10 million barrels of active shell capacity. It also has light product terminals in Texas, Tennessee and Arkansas.
That payout didn’t grow in a straight line, of course. DKL has been growing its distributions every single quarter for years, which is fantastic for investors because it only adds to the power of compounding.
Aristocrats
The Dividend Aristocrats are a group of 57 S&P 500 companies that have increased their dividends on an annual basis for at least 25 consecutive years, though many of them have done so for many years longer than that.
But they’re not all gems. I’ve recently pointed out a few Dividend Aristocrats that aren’t worth your time. Their business prospects are middling, and dividend growth has become downright begrudging, as if the only reason they’re raising them isn’t to reward shareholders, but instead to just keep their membership cards updated.
Contrarian Outlook
Dividend Spotlight: Johnson & Johnson (JNJ): Johnson & Johnson is one such Aristocrat laggard. The company is in the midst of serious legal issues related to one of its most famous consumer products.
As I pointed out at the start of the year:
J&J spent 2018 in court battling off cases related to claims that their baby powder contained asbestos and caused mesothelioma to a few people who were exposed to it. “We will continue to defend the safety of our product because it does not contain asbestos or cause mesothelioma,” the company said in May after losing a ruling in California.
But Reuters dropped a bombshell report in December saying that internal documents “show that the company’s powder was sometimes tainted with carcinogenic asbestos and that J&J kept that information from regulators and the public” for decades. JNJ tanked 13% in five trading days following Reuters’ report, and that very likely won’t be the last of it. Johnson & Johnson not only risks suffering a massive reputational hit to its consumer brands, but its legal path forward suddenly looks fraught with potholes.
These issues threaten to put a cap on Johnson & Johnson in the near-term. In turn, that could put some pressure on the company to please shareholders in any way it can – including writing significantly fatter dividend checks. Payout growth has been respectable, at about 28% since early 2015, but J&J might need to deliver something truly generous in mid-April, when it typically announces its annual dividend increase.

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