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Nothing would be better for an investor than to collect a solid dividend over the next 2 to 3 years and watch the stock double in value as well. Most dividend stocks have performed relatively well when compared to stocks that pay little or no dividends. Many of these stocks have dropped because they are tied to economically sensitive industries, but in the next couple of years they could see a strong rebound. With rates likely to be near zero for at least a couple more years, smart investors are building a portfolio that will pay them much more than what most bonds, and other investments will pay. A major bonus for any investor is buying a stock that has the potential to rise while collecting a dividend. Here are some dividend stocks that could see major appreciation in the next 2 to 3 years:

Kronos Worldwide Inc., (NYSE:KRO) is a leading maker of specialty chemicals and coating primarily for industrial use. This stock was trading around $31 per share in July and the market correction and concerns over a recession have pounded the stock down to $17. Any stocks related to industry have been weak and will probably remain weak until the economy improves, so I would only buy this stock on dips. This stock would be a double if it just traded back around the 52 week high.

Here are some key points for KRO:

  • Current share price: $17.10
  • The 52 week range is $15.92 to $34.50
  • Earnings estimates for 2011: $2.82 per share
  • Earnings estimates for 2012: $3.44 per share
  • Annual dividend: 60 cents per share which yields 3.5%

BP PLC. (NYSE:BP) is a major integrated oil and gas company. The past couple of years have been tough for BP due to the oil spill in the Gulf of Mexico but, profits are expected to improve. The dividend yield is nearly 5% and is likely to rise as claims related to the oil spill are resolved. If BP grows earnings to about $8 or $9 per share in a couple years and the market puts a higher multiple on the stock it could double to about $70 per share.

Here are some key points for BP:

  • Current share price: $36.82
  • The 52 week range is $35.10 to $49.50
  • Earnings estimates for 2011: $6.78 per share
  • Earnings estimates for 2012: $6.98 per share
  • Annual dividend: $1.68 per share which yields 4.7%

Whirlpool Corporation (NYSE:WHR) is a leading maker of major appliances such as stoves, dishwashers, refrigerators and more. This stock was trading around $75 per share in July and has seen a huge decline over fears of a global recession. This stock is likely to remain under pressure for the next few months or until investors have a better idea of how the economy is doing. However, while it could drop further in the short term, it has the potential to just about double when the economy improves.

Here are some key points for WHR:

  • Current share price: $50.40
  • The 52 week range is $47.35 to $92.28.
  • Earnings estimates for 2011: $11.04 per share
  • Earnings estimates for 2012: $8.26 per share
  • Annual dividend: $2 per share which yields 4.2%

Huntsman Corporation (NYSE:HUN) is a leading maker of specialty chemical products. This stock looks like a bargain when you consider the book value is about $8.76, the yield is 3.4% and that these shares trading at almost half of the 52 week high. This company might see a slowdown from industrial demand in the next couple of quarters, but even so, the stock looks oversold.

Here are some key points for HUN:

  • Current share price: $9.83
  • The 52 week range is $9.75 to $21.52
  • Earnings estimates for 2011: $1.71 per share
  • Earnings estimates for 2012: $2.01 per share
  • Annual dividend: 40 cents per share which yields 3.8%

Marathon Oil Corporation (NYSE:MRO) is a leading oil exploration and production company. This stock was trading around $31 in July and looks like a solid value at current levels. The price to earnings ratio is only about 7, and the dividend is nearly 2.5%. Plus, this stock is trading close to book value, which is $23.40.

Here are some key points for MRO:

  • Current share price: $22.22
  • The 52 week range is $21.58 to $54.33.
  • Earnings estimates for 2011: $3.64 per share
  • Earnings estimates for 2012: $3.96 per share
  • Annual dividend: 60 cents per share which yields 2.6%

Total SA (NYSE:TOT) is a major integrated oil company, based in France with operations worldwide which include refining, exploration, and service stations. Total stock has been declining based on lower oil prices and debt concerns in Europe. It now trades at a very cheap price to earnings ratio of about 6, and pays a strong dividend.

Here are some key points for TOT:

  • Current share price: $44.48
  • The 52 week range is $40 to $64.44
  • Earnings estimates for 2011: $7.61 per share
  • Earnings estimates for 2012: $8.02 per share
  • Annual dividend: about $3.20 per share which yields about 6.9%

Eastman Chemical Company (NYSE:EMN) is a leading maker of chemicals, plastics, fibers and other products. With significant concern that a new recession will destroy demand for many products made by Eastman, investors have been selling this stock to levels not seen for many months. This stock appears oversold and offers a solid dividend yield.

Here are some key points for EMN:

  • Current share price: $69.76
  • The 52 week range is $64.89 to $110.72
  • Earnings estimates for 2011: $9.32 per share
  • Earnings estimates for 2012: $9.39 per share
  • Annual dividend: $2.08 per share which yields about 3%

Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.

Disclosure: I am long MRO.

Source: 7 Dividend Stocks That Could Double Your Money In 2 To 3 Years