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1 Dividend Stock That Could Be a 10-Bagger and Another You've Never Heard Of

By Matthew Frankel, CFP® and Jason Hall – Updated Nov 17, 2021 at 6:27PM

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Dividend stocks with lots of growth potential can be hard to find, but here's what some of our contributors think.

In a recent episode of "The Rank" on Fool Live, three of our contributors ranked a basket of 10 dividend stocks from best to worst. After the rankings were done, Matt Frankel, Jason Hall, and Jon Quast discussed which stock they think is most likely to deliver 10-bagger returns over the next decade, in this clip recorded on Oct. 25. Plus, Jason shares one of his favorite dividend stocks that isn't on most investors' radar. 

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Matt Frankel: Out of these ten dividend stocks, including reinvested dividends, we saw EPR (EPR 1.55%), for example, has been a 10-bagger if you reinvest the dividends in stock. Including reinvested dividends, which do you think out of these has the most chance of being a 10-bagger within the next decade? Jason?

Jason Hall: I'd say Kinsale (KNSL 0.30%), I think Live Oak Bank (LOB 8.56%) has an outside shot, but there's a ton of valuations already priced than I think there. So I'd would say Kinsale.

Frankel: Jon?

Jon Quast: I don't know about 10 years, but if I had to put a 10-bagger on the list, I'd say Kinsale as well. A little bit I know about it.

Frankel: That's fair. I'd say if you stretch it out to 20 years, there's a bunch of these that can be 10-baggers. That's the point with these dividend stocks to get 10-baggers by the time I retire, not to get them in ten years. With that, I would say it's between Live Oak and Kinsale. Probably Kinsale is my number one for most likely.

With that, one more question I wanted to ask you guys. Other than this list, everything that we've talked about so far is recommended by one Fool service or another. You names one dividend stock that's not recommended by a Fool service right now, I know one in particular that I think Jason is going to say and he's smiling and right now. But one that's not recommended by any Fool service that you think should be on investors' radar and why?

Hall: I'm just going to go with it, Matt. CareTrust REIT (CTRE 3.22%), ticker, CTRE. What Matt and I go back and forth on this is that it's an area that Matt's not particularly interested in owning because of the quality of the tenants. This is skilled nursing facilities. A lot of the tenants in that space are not very good. Why do I think CareTrust is differentiated? Because it was part of a care provider.

The CEO of CareTrust's was a co-founder of Ensign Group (ENSG -0.75%). So they understand the care side and I think that gives them a little bit of an edge and it is just a big tailwind industry. The number of 65-plus Americans from 2010 to 2030 is going to double to 80 million. We need more skilled nursing facilities, we need more retirement housing. This is a really small business, they have 300 properties right now. I think we're going to need 18,000 to 20,000 of them by 2030, 2035. Their opportunity to grow, I think is enormous. They are really good capital allocators and you need really good capital allocators in these spaces.

Matthew Frankel, CFP® owns shares of EPR Properties and Kinsale Capital Group. The Motley Fool owns shares of and recommends Kinsale Capital Group and Live Oak Bancshares. The Motley Fool recommends EPR Properties. The Motley Fool has a disclosure policy.

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