Dividend Stocks to Buy for Double-Digit Returns: Enterprise Products Partners LP (EPD)
Dividend Yield: 6%
Along the same lines, I’d consider rival pipeline operator Enterprise Products Partners LP (NYSE:EPD) to be a solid bet for annual double-digits returns.
EPD is the bluest of blue chips in the midstream pipeline space. While rivals such as Energy Transfer and Kinder Morgan Inc (NYSE:KMI) got themselves into trouble by growing their dividend too aggressively and resorting to borrowing aggressively to fund new products, EPD has quietly kept its head down and plugged along. If there was ever a crisis in the oil patch, you would never have known it from seeing EPD’s operating results.
At current prices, EPD sports a dividend of 6%. But it also consistently raises that dividend at a 5%-6% clip every year. Again, that’s not get-rich-quick money. But it’s a recipe for annual returns in the ballpark of 12%.
Stock prices rise, and stock prices fall. And even stodgy, boring EPD periodically sees its stock price get tossed around, as we saw in 2015. But at current prices and yields, Enterprise Products Partners would seem like a safe bet for double-digit annual returns for the foreseeable future.