With the Federal Reserve moving up key interest rates over the last year or so, bond markets and CDs are now yielding much better than they did in years past. For instance, the 10-year Treasury bond — one of the most secure assets on that planet — now yields roughly 4%.
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Considering T-notes have such a low risk profile and high yield, it’s now harder to convince income-oriented investors to take a chance on stocks. After all, the S&P 500 only yields an average of 1.6% across its components and can be much more volatile than rock-solid bonds. Given the rocky start to 2024, that’s enough to make some folks forgo dividend stocks altogether.
That said, the long-term growth potential of the U.S. stock market is unmatched by other assets. And there are good options out there if you’re an investor who’s interested in yield but also wants the potential of upside in stocks.
The following growth-oriented companies are all delivering double-digit revenue growth — and on top of that, a yield of more than 2% to provide a better-than-average dividend, too.
| Stock | Dividend yield |
| ASE Technology Holding Co. Ltd. (ticker: ASX) | 6.4% |
| DHT Holdings Inc. (DHT) | 7.1% |
| Extra Space Storage Inc. (EXR) | 4.1% |
| Hercules Capital Inc. (HTGC) | 9.2% |
| JinkoSolar Holding Co. Ltd. (JKS) | 4.8% |
| L3Harris Technologies Inc. (LHX) | 2.2% |
| Mondelez International Inc. (MDLZ) | 2.3% |
| Starbucks Corp. (SBUX) | 2.5% |
| Toyota Motor Corp. (TM) | 2.4% |
ASE Technology Holding Co. Ltd. (ASX)
Dividend yield: 6.4%
Chipmaker ASE Technology is trading down a bit from its Christmas highs, but the stock is still up roughly 30% over the last 12 months thanks to both the performance of the semiconductor industry generally and its unique business model as the go-to provider of packaging and testing. Its more modest size than the megacap foundries in the space and more agile operations mean it can quickly capitalize on the sector’s recent turnaround. For fiscal 2024, ASE Technology is projecting double-digit revenue growth, but, more importantly, a roughly 50% jump in profits on top of that. This cash flow will help ensure the generous dividend continues to be paid to shareholders.
DHT Holdings Inc. (DHT)
Dividend yield: 7.1%
The business of DHT is pretty straightforward, as the firm operates a fleet of 23 immense crude oil tankers and transports fossil fuels around the globe. Given a rise in shipping rates as well as global tail winds for the crude oil industry across the last year or so, DHT’s critical transportation services have been in high demand. That high demand is translating to significantly better results, with Wall Street forecasting an impressive 57% growth rate in revenue for fiscal 2023 and another 25% increase in 2024. Shipping performance can be volatile, and thus so can DHT’s dividend, but right now the annualized yield is quite generous; its last payout of 35 cents is almost 10 times the 4 cents it paid back at the end of 2022.
Extra Space Storage Inc. (EXR)
Dividend yield: 4.1%
You might not think that a storage company is particularly dynamic. And on the surface, EXR may not seem like a growth stock as it operates nearly 3,700 self-storage locations in the U.S., and is structured as a real estate investment trust, or REIT, thanks to its sizable property holdings. However, a closer look at the fundamentals shows that while it has the high yields that typically satiate REIT investors, EXR has a lot to offer growth investors, too. Specifically, it is expecting nearly 35% revenue growth in fiscal 2023 when numbers are finalized, and nearly 25% revenue growth in fiscal 2024 on top of that.
Hercules Capital Inc. (HTGC)
Dividend yield: 9.2%
Financial stocks are typically not very growth-oriented businesses. But HTGC stands out because it is a special class of financial institution known as a business development company, or BDC. BDCs operate more like hedge funds or private equity funds, deriving their performance from the gains they make on other investments — and then sharing the wealth with their own investors based on how the portfolio does. Hercules specializes in debt for “venture” investments as well as growth capital. And as the U.S. economy fared better than expected in 2023, so did HTGC — with a gain of about 30% in the last 12 months, on top of a jaw-dropping dividend that is about six times the payout of the S&P 500 index.
[READ: 8 Best Stocks to Buy Now With $1,000]
JinkoSolar Holding Co. Ltd. (JKS)
Dividend yield: 4.8%
Unlike some of the other stocks on this list, shares of China-based solar power company Jinko have struggled over the last year or so thanks to production and export challenges. But in the age of climate change, solar power is a must for the global economy. And besides, revenue is booking even though JKS stock has declined recently. When fiscal 2023 numbers are reported, the firm should post a jump of more than 30% in sales over the prior year. While profitability hasn’t kept pace, investors can look forward to a potential correction in the supply-demand balance in the solar industry across 2024, as well as the long-term tailwind for alternative energy in general.
L3Harris Technologies Inc. (LHX)
Dividend yield: 2.2%
While perhaps not as well known as defense industry peers like Lockheed Martin Corp. (LMT), L3Harris is a world-class aerospace and defense technology company that specializes in surveillance, weapons targeting and communication systems, as well as fleet management support. With key relationships across the U.S. Department of Defense, there is not only a strong baseline for revenue but also the potential for future upside — particularly given the nature of geopolitical unrest in Ukraine and Gaza in 2024. L3 Harris should close out fiscal 2023 with double-digit revenue growth, and Wall Street forecasts predict more than 10% growth again in fiscal 2024.
Mondelez International Inc. (MDLZ)
Dividend yield: 2.3%
After a spin-off from then-parent company Kraft almost 12 years ago, Mondelez was formed to focus on global growth for brands that include Oreo, Ritz and Cadbury. And while many packaged food staples are a good example of slow-and-steady performers, this focus on snacks makes it much more of a discretionary play — and more likely to tap into consumer spending growth. MDLZ is plotting double-digit revenue expansion for fiscal 2023, and with recent plans to reinvigorate the Toblerone chocolate brand as a premium product, there could be strong revenue and earnings ahead in 2024 as Mondelez builds on its powerful international brand portfolio.
Starbucks Corp. (SBUX)
Dividend yield: 2.5%
The growth story behind specialty beverage leader Starbucks is well known, and Wall Street forecasts indicate that investors can expect sales expansion to continue over the next few earnings reports. Previous forecasts indicate a more than 20% growth rate in fiscal 2023 revenue, and a more than 10% growth rate for fiscal 2024 on top of that. Income investors will also be impressed with the continued growth in payouts, with a bump in September to 57 cents that makes dividends more than five times the 10.5 cents per share that were paid just a decade ago.
Toyota Motor Corp. (TM)
Dividend yield: 2.4%
Shares in automaker Toyota are up about 35% in the last 12 months to significantly outpace the broader stock market in the same period. That’s because Toyota has a powerful portfolio of leading brands right now, as well as future ambitions to become a leader in electric vehicles. The company has announced aims to produce 3.5 million EVs per year by 2030 — a big number, considering EV leader Tesla targeted about half that amount for 2023. Investors seem to think Toyota can hit the mark, though. And in the near term, its fiscal 2023 revenue reported in September was up double-digits over the previous year, proving “old school” cars are still a big moneymaker for this top automaker. And that steady stream of traditional vehicle sales is a big reason for an above-average dividend, even as TM retools for the EV age.
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Update 01/10/24: This story was previously published at an earlier date and has been updated with new information.
