3 Dividend Stocks with Potential for 100% Growth by 2030

3 Dividend Stocks with Potential for 100% Growth by 2030

Double your money in no time. Few investors would give up such an opportunity. Of course, there is no guarantee that any investment will double your money. With risk comes potential rewards.

However, achieving 100% returns over the next six and a half years is not outside the realm of possibility. Here are three ultra-high-yielding dividend stocks that could realistically generate a 100% total return by 2030.

1. Ares Capital

Ares Capital (NASDAQ:ARCC) is the largest publicly traded market business development company (BDC). The company provides financing to middle-market businesses, with a particular emphasis on the upper end of this market.

BDCs are required to return at least 90% of their profits to shareholders in the form of dividends. Ares Capital made plenty of profits to return to investors. Its dividend yield stands at almost 9.6%. The company’s dividend is also reliable: stable, even increasing for 14 years.

This stock would generate a return of over 80% by the end of 2030 from its dividends alone, even if its stock price went nowhere. However, if history is to be believed, Ares Capital should offer investors strong stock price appreciation in addition to juicy dividend payouts. The company’s total return exceeded S&P500 on the long term.

Ares Capital meets the financing needs of a growing market. Many banks have avoided the middle market, leaving BDCs with a big opportunity to provide private capital. With Ares’ excellent track record, strong financial position, and fantastic dividend, I think the stock has a good chance of doubling investors’ money by 2030.

2. Enterprise Product Partners

Enterprise Product Partners (NYSE:EPD) is a limited partnership (LP) which owns intermediate energy assets. These assets include more than 50,000 miles of pipelines, 40 natural gas processing plants, 26 fractionators, and more.

Midstream energy LPs are known for generously rewarding investors with attractive distributions. Enterprise Products Partners is no exception. Its distribution yields nearly 7.2%. The company has also increased its distribution for 25 consecutive years.

These distributions should go a long way toward enabling enterprise product partners to generate a total return of 100% or more by 2030. Don’t discount the stock’s prospects for strong performance, though.

Demand for natural gas and natural gas liquids is expected to grow in the coming years. This is expected to boost demand for Enterprise Products Partners’ pipelines and midstream facilities, particularly as the United States is the largest exporter of liquefied natural gas.

3. Pfizer

Pfizer (NYSE:PFE) is the best known of these three actions. The company is one of the largest drug manufacturers in the world. It markets a wide range of products, including drugs for autoimmune diseases, cancer therapies and vaccines.

My definition of an ultra-high-yielding dividend stock is one whose dividend yield is at least four times that of the S&P 500. Pfizer’s dividend yield of nearly 6.1% meets this criterion.

Like Ares Capital and Enterprise Products Partners, Pfizer doesn’t need to generate huge stock appreciation to double investors’ money by 2030 thanks to its attractive dividend. Some might worry that the company won’t be able to generate strong growth due to declining sales of its COVID-19 products and the impending loss of patents on several of its best-selling drugs.

However, I expect Pfizer’s COVID-19 revenues to stabilize. The company projects additional revenue of $20 billion annually by 2030 through new product launches and new indications for existing products. This is more than enough to offset the decline in revenue due to the looming threat of the patent cliff. Pfizer also projects an additional $25 billion in new revenue from commercial development deals by 2030.

All of this translates into solid growth. Combined with dividend payouts, I believe this growth could allow Pfizer to easily produce a 100% total return over the next six and a half years.

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Keith Speights holds positions in Ares Capital, Enterprise Products Partners and Pfizer. The Motley Fool holds positions at and recommends Pfizer. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

3 Super High-Yielding Dividend Stocks That Could Realistically Double Your Money by 2030 was originally published by The Motley Fool

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