It’s hard to find growth stocks that pay dividends. That’s in large part because companies with ambitious plans to expand their operations or product lines typically don’t have spare cash they are willing to allocate to shareholders.
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However, while growth dividend stocks are harder to find, they are not nonexistent on Wall Street. One category involves established companies that are large enough to afford a dividend but also well-run and plotting continued success in the future. Another category includes tactical plays based on short-term trends that are uniquely beneficial to their business. And, of course, there are old-school dividend payers that may be right on the verge of a rebound that is driving growth — even if it only really gets them back to where they were in years past.
The following list of nine stocks offers various investments that fit these themes. But one thing they all share is a general projection of 10% revenue growth, along with a dividend of at least 2%.
The typical S&P 500 stock is struggling to show any growth in a challenging year, and the average yield is just 1.7%. These stocks pay at least moderately more in dividends.
| Stock | Dividend yield |
| Abbvie Inc. (ticker: ABBV) | 3.7% |
| Cedar Fair LP (FUN) | 2.7% |
| Darden Restaurants Inc. (DRI) | 3.2% |
| EastGroup Properties Inc. (EGP) | 3.0% |
| Gen Digital Inc. (GEN) | 2.8% |
| Infosys Ltd. (INFY) | 2.3% |
| La-Z-Boy Inc. (LZB) | 2.6% |
| Marine Products Corp. (MPX) | 4.2% |
| Starbucks Corp. (SBUX) | 2.0% |
Abbvie Inc. (ABBV)
Big Pharma leader AbbVie isn’t exactly a standout growth stock anymore, as it has a market cap of more than $280 billion at present after a five-year track record of more than 15% revenue growth per year. However, it’s still expanding at a modest rate — and if management’s projections are correct, its newest branded treatments, including psoriasis drug Skyrizi and arthritis drug Rinvoq, will fuel sales between 7% and 9% annually through the end of the decade. Considering its already significant dividend and the potential of future income growth driven by this sales growth, that makes ABBV worth noting.
Dividend yield: 3.7%
Cedar Fair LP (FUN)
Cedar Fair is an amusement park giant that operates various entertainment destinations across the U.S. and Canada. That includes its flagship Cedar Point destination in Ohio, which has made a name for itself by building some of the tallest and fastest roller coasters in the world. Obviously, the pandemic wasn’t great for a company like Cedar Fair. But FUN stock has come back strong — as has its dividend, reinstated at 30 cents per quarter last year. With projections of more than 35% revenue growth as this company gets back in gear, there could be a massive short-term growth trend in store for investors here.
Dividend yield: 2.7%
Darden Restaurants Inc. (DRI)
One of the biggest restaurant conglomerates in America, Darden operates brands including Olive Garden, LongHorn Steakhouse, Yard House and Capital Grille. The company was able to weather the pandemic very successfully thanks to the integration of online ordering and carryout across its franchises, and that business model has persisted even as sit-down dining has returned. The result is shares trading at near all-time highs even as there are consumer spending concerns in 2023, and hopes for nearly 10% sales growth if things go well this year.
Dividend yield: 3.2%
EastGroup Properties Inc. (EGP)
A roughly $7 billion real estate firm, EastGroup owns and operates about 46 million square feet of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. To be clear, this is not your typical residential operator that has to worry about consumer rent trends or mortgage rates. Instead, EGP rents its space to industrial clients that simply need loading docks and warehouse space. The cash flow supports a reliable dividend, but EGP is also cashing in on its growth-oriented strategy as it projects 12% sales growth this fiscal year and nearly 10% in fiscal year 2024.
Dividend yield: 3%
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Gen Digital Inc. (GEN)
Gen Digital Inc. is a cybersecurity solutions provider that is tailor-made for the current environment. Cyber risks have long been a major concern for many corporations and institutions, but the war in Ukraine has shined a spotlight on Russia’s hacking and malware complex. Shares of Gen Digital have admittedly been volatile lately, but the fundamentals speak for themselves. With 19% revenue growth projected this fiscal year and another 16% forecast for fiscal year 2024, GEN is a great example of both growth potential and dividend potential in the same package.
Dividend yield: 2.8%
Infosys Ltd. (INFY)
India-based Infosys is a consulting, outsourcing and technology service provider that is a global leader in the digital transformation of businesses in various sectors ranging from aerospace to agriculture to financial services. With double-digit revenue expansion projected this year and next, INFY is showing strong growth potential even while the broader macroeconomic environment isn’t particularly rosy right now. And while dividends are paid only twice annually, the yield is still well above the typical S&P 500 stock right now.
Dividend yield: 2.3%
La-Z-Boy Inc. (LZB)
You may think of La-Z-Boy as an old-school brand, but thanks to a rejuvenated product line, the company is plotting significant growth as it gains back market share in the home furnishings business. In fact, at the end of February, the stock jumped more than 10% in a single week on optimism over its outlook, which includes more than 20% revenue growth projected this year and 30% next year. From an income perspective, things are looking good, too. At the end of last year, LZB boosted its dividend to 18.2 cents per quarter, for a yield that is a full percentage point higher than the typical S&P 500 company.
Dividend yield: 2.6%
Marine Products Corp. (MPX)
As the name implies, Marine Products is a company engaged in sports boats, fishing boats and related parts across markets worldwide. The pandemic was pretty good for sales, as people fell in love with watersports and outdoor activities to kill the time, and shares have admittedly rolled back from their all-time highs just after COVID. Still, Marine Products has strong fundamentals that make it worth a look. MPX just boosted its dividend from 12 to 14 cents, driven by increased profitability, and also forecast a hefty 24% jump in sales in its most recent fiscal year.
Dividend yield: 4.2%
Starbucks Corp. (SBUX)
The company that single-handedly put the specialty beverage revolution of the last 20 years on the map, Starbucks does so much more than coffee — and thanks to aggressive global expansion coupled with menu management, SBUX is a $120 billion corporation that is projecting double-digit revenue growth both this year and next. Its dividend is admittedly the lowest on this list, but if you’re looking for a growth stock with staying power, the multiyear success of Starbucks is noteworthy.
Dividend yield: 2%
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9 Growth Stocks That Also Pay Dividends originally appeared on usnews.com
Update 04/12/23: This story was previously published at an earlier date and has been updated with new information.
