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10 Dividend Stocks That Will Deliver Double-Digit Returns Every Year

These stocks already generate high annual income, so you need just a little growth to reach 10%-plus in annual returns

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Dividend Stocks to Buy for Double-Digit Returns: Realty Income (O)

Dividend Yield: 4.1%

A stodgy retail REIT like Realty Income Corp (NYSE:O) might seem like a farfetched choice, but hear me out. The stock has actually generated compound annual returns of 16.9% since its 1994 listing. So while the company is distinctly boring — it’s a passive landlord of high-traffic retail properties such as pharmacies and convenience stores — its returns have been fantastic.

Now, to be fair, a lot of those returns came in the late 1990s and early 2000s, when REITs were still a mostly undiscovered asset class and dividend yields were a lot higher than they are today. But even at today’s prices, I believe double-digit annual returns are doable.

Realty Income currently sports a dividend yield of 4.1%. Over the course of its life, it’s raised its dividend at a 4.7% annual clip. So between the current dividend yield and the dividend growth rate, you’re already getting close to double-digit returns. And over the past year, the stock has actually bumped its dividend at a faster rate (around 6%).

So, if Realty Income is able to keep boosting the dividend at that rate and market yields stay pretty constant, you’re looking at a 10% annual return.

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