7 Dividend Stocks That Could Double Your Money Every 5 Years

|
 |  Includes: ANH, CODI, CYS, FTR, NRF, RSO, TWO
by: Hawkinvest

The Federal Reserve plans to keep interest rates at very low levels (near zero) for about two more years. With rates stuck at very low levels for the foreseeable future, smart investors are building a portfolio that will pay them much more than what most bonds, certificates of deposit and other common investments will pay.

If you invest in a stocks with an average yield of about 15%, your portfolio will double in value in about five years. If you invested equally in these 7 stocks, the portfolio would yield about 15% annually. To calculate for individual stocks you can use the investment calculator here. Here are some top-yielding stocks that could double your money just about every 5 years:

Compass Diversified Holding (NYSE:CODI) invests in small to mid sized companies. Compass recently agreed to acquire Camelbak and already has invested in companies like Staff Mark, Liberty Safe, Ergo Baby Carrier and others. With a yield of nearly 11%, this stock looks like a solid buy for income investors.

Here are some key points for CODI:

  • Current share price: $13.15
  • The 52 week range is $11.21 to $18.58
  • Earnings estimates for 2011: $1.80 per share
  • Earnings estimates for 2012: $1.89 per share
  • Annual dividend: $1.44 per share which yields 10.8%
  • Book value: $9.74

NorthStar Realty Finance Company (NYSE:NRF) is a real estate investment trust (REIT) that invests in commercial mortgages and other related investments. This stock is trading way below book value and looks like a solid buy, especially on any dips.

Here are some key points for NRF:

  • Current share price: $3.45
  • The 52 week range is $2.92 to $6.13.
  • Earnings estimates for 2011: $1.60 per share
  • Earnings estimates for 2012: $1.54 per share
  • Annual dividend: 40 cents per share which yields 11.5%
  • Book value: $9.36 per share

Frontier Communications (NYSE:FTR) provides communications services, such as local and long distance, Internet access, data services, and video services. It appears the dividend at FTR could be at risk since it is not covered by earnings estimates in 2011 or 2012, so I would not make this a significant position in any portfolio.

Here are some key points for FTR:

  • Current share price: $5.95
  • The 52 week range is $5.33 to $9.84
  • Earnings estimates for 2011: 24 cents
  • Earnings estimates for 2012: 29 cents
  • Annual dividend: 75 cents per share which yields 12.2%

CYS Investments Inc. (NYSE:CYS) is a mortgage real estate investment trust (REIT) company. This is one of the highest yielding mortgage REIT stocks and it is also trading at a discount to book value. The stock yields nearly 18% and the discount to book value is about 4%.

Here are some key points for CYS:

  • Current share price: $12.66
  • The 52 week range is $10.52 to $14.07
  • Earnings estimates for 2011: n/a on Yahoo Finance
  • Earnings estimates for 2012: n/a on Yahoo Finance
  • Annual dividend: $2.20 per share which yields 17.90%
  • Book value: $12.98 per share

Two Harbors Investment Corp (NYSE:TWO) is a real estate investment trust (REIT) that invests in residential mortgage-backed securities, and residential mortgage loans. With a yield of about 18%, and a share price below book value, this looks like a bargain.

Here are some key points for TWO:

  • Current share price: $9.07
  • The 52 week range is $7.72 to $11.51
  • Earnings estimates for 2011: n/a on Yahoo Finance
  • Earnings estimates for 2012: n/a on Yahoo Finance
  • Annual dividend: $1.60 per share which yields 17.7%
  • Book value: $9.73 per share

Anworth Mortgage Asset Corporation (NYSE:ANH) is a mortgage real estate investment trust (REIT) company that invests in mortgage-backed securities. Anworth is based in California and pays a dividend of 92 cents annually which is equivalent to a yield of around 14.4%.

Here are some key points for ANH:

  • Current share price: $6.35
  • The 52 week range is $5.63 to $7.74.
  • Earnings estimates for 2011: 95 cents per share
  • Earnings estimates for 2012: 91 cents per share
  • Annual dividend: 92 cents per share which yields 14.4%
  • Book value: $7.09 per share

Resource Capital Corp (NYSE:RSO) is a mortgage real estate investment trust (REIT) company, based in New York. This company invests primarily in commercial real estate and mortgage-backed securities. Resource Capital trades at a discount to book value and is trading close to the 52 week low. If this stock rebounds, investors could see great returns with this stock.

Here are some key points for RSO:

  • Current share price: $5.28
  • The 52 week range is $4.20 to $7.70
  • Earnings estimates for 2011: n/a on Yahoo Finance
  • Earnings estimates for 2012: n/a on Yahoo Finance
  • Annual dividend: $1 per share which yields 18.9%
  • Book value: $5.93 per share

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 have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.