“Risk-on” investments are definitely working in 2024, as a red-hot tech sector continues to deliver and the broader stock market is up by about 10% since Jan. 1. But while growth stocks are undeniably in favor, there are many investors out there who still demand regular income from their portfolio via dividends.
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That said, the typical payout across S&P 500 stocks is a mere 1.6% at present — so it’s hard to put all your assets into slow-moving value investments when momentum stocks are rallying and 10-year Treasurys yield more than 4.3% right now.
There’s a select group of stocks out there that straddle the line between growth and dividends pretty effectively. The following nine companies all offer yields of more than 2% at present as well as strong growth potential for the future to capitalize on the bull market of 2024.
| Stock | Market Cap | Current Dividend Yield |
| Amgen Inc. (ticker: AMGN) | $143.7 billion | 3.4% |
| ASE Technology Holding Co. Ltd. (ASX) | $24 billion | 5.2% |
| Automatic Data Processing Inc. (ADP) | $99.2 billion | 2.3% |
| Baxter International Inc. (BAX) | $21.7 billion | 2.7% |
| Diamondback Energy Inc. (FANG) | $35.9 billion | 4.0%* |
| Dick’s Sporting Goods Inc. (DKS) | $17.2 billion | 2.1% |
| Hewlett Packard Enterprise Co. (HPE) | $23.3 billion | 2.9% |
| Pan American Silver Corp. (PAAS) | $6.1 billion | 2.4% |
| Tapestry Inc. (TPR) | $9.9 billion | 3.3% |
*Trailing dividend yield used, since FANG makes special dividend payments.
Amgen Inc. (AMGN)
Market capitalization: $143.7 billion Current dividend yield: 3.4%
Leading biotechnology firm Amgen made a name for itself with blockbuster drugs including the anti-inflammatory Enbrel and osteoporosis treatment Prolia, among others. A robust product pipeline continues to generate new opportunities for growth, too, with an anti-obesity drug called MariTide that is currently in phase 2 clinical trials. Additionally, at the end of 2023, it closed on an acquisition of rival Horizon Therapeutics to beef up its operations even more and is projecting more than 17% revenue growth this year because of these recent efforts. On top of all the investment in buyouts and R&D, however, AMGN still has set aside enough cash to offer a dividend that is roughly two times that of the broader S&P 500 Index.
ASE Technology Holding Co. Ltd. (ASX)
Market capitalization: $24 billion Current dividend yield: 5.2%
It has been a heck of a run lately for semiconductor stocks, and chipmaker ASE Technology stands out as a big winner as well as a big dividend payer. ASE is not a direct chipmaker, with a unique business model where it is a leading provider of packaging and testing for other firms in the sector. For both fiscal 2024 and fiscal 2025, ASE Technology is projecting double-digit revenue growth — with profits expanding even faster. It’s impressive enough to see share prices up about 40% in the last year, but the big-time yield on top of that makes this a dividend-paying growth stock that every investor should look into.
Automatic Data Processing Inc. (ADP)
Market capitalization: $99.2 billion Current dividend yield: 2.3%
A leader in solutions for employers of all shapes and sizes, ADP offers payroll, human resources benefits administration, hiring and other related services to companies around the world. As the U.S. labor market in particular has proven quite resilient — after all, U.S. job growth accelerated at the start of the year, and January marked the biggest wage increase in nearly two years — there is clearly a need for companies like ADP. The dividend isn’t as large as some of the other picks on this list, but its $1.40 payout per quarter is up nicely from $1.25 last year and is more than double the dividend it paid as recently as 2018.
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Baxter International Inc. (BAX)
Market capitalization: $21.7 billion Current dividend yield: 2.7%
Baxter is a health care products company that provides intravenous solutions, injectables, respiratory devices, diagnostic gear, surgery tools and much more. There are few things that are certain in life, but one thing that’s inevitable is the continued need for care that we’ll all have as we age. And with shifting demographics at home and abroad, the tailwind for the health care industry is one that will be durable and significant in the years ahead. With Baxter’s diversified business lines in the sector, there’s a great opportunity to capitalize on this — as evidenced by the fact that earnings per share are expected to jump from $2.60 last fiscal year to $2.90 in fiscal year 2024 and then $3.23 in fiscal year 2025. That’s a good sign for share-price appreciation, and more than enough to cover the $1.16 per share in annual dividends.
Diamondback Energy Inc. (FANG)
Market capitalization: $35.9 billion Trailing dividend yield: 4%
Among the energy stocks riding high in 2024 thanks to improving crude oil prices, FANG is projecting a jaw-dropping 70% growth in its top line next fiscal year. As things have picked up for Diamondback, it has moved its dividend significantly higher lately — with its November payout of $3.37 per share up more than $2.50 from just two quarters prior. This kind of volatility in distributions is something to be aware of, as a rollback in profitability will mean less income potential down the road. But based on the last four payouts, the annualized yield on this energy stock still looks good. And with strong growth prospects going forward, it may be worth the risk in pursuit of generous dividends.
Dick’s Sporting Goods Inc. (DKS)
Market capitalization: $17.2 billion Current dividend yield: 2.1%
It hasn’t been a particularly rosy time for discretionary retailers in the last few years, but Dick’s has managed to impress Wall Street lately with its strong performance. The sporting goods retailer reported better-than-expected results for its Q4 earnings, and cheered investors with a 10% dividend increase in March as a sign it’s committed to sharing its success. The company completed a business optimization effort last year that is intended to streamline costs and free up capital to support continued financial improvement across 2024.
Hewlett Packard Enterprise Co. (HPE)
Market capitalization: $23.3 billion Current dividend yield: 2.9%
Not to be confused with the printer-focused sister company HP Inc. (HPQ), Hewlett Packard has evolved to become a significant player in the enterprise technology sector. The company is growing through key partnerships, such as a recently unveiled deal with chipmaking giant Nvidia Corp. (NVDA) as well as the outright acquisition of networking company Juniper Networks at the end of 2023 in an all-cash transaction valued at roughly $14 billion. On top of all that, it increased its payout from 12 cents to 13 cents a quarter back in November, too. While HPE has admittedly underperformed other tech stocks in recent years, these deals could put it back on a path to consistent growth — and with earnings of roughly $2 projected this year, there’s plenty of cushion to keep those payouts intact going forward.
Pan American Silver Corp. (PAAS)
Market capitalization: $6.1 billion Current dividend yield: 2.4%
Midsize precious metals miner Pan American is primarily engaged in the exploration, processing and refining of silver, gold, zinc, lead and copper in regions ranging from Canada through Mexico to Chile. The company is particularly sensitive to commodity market pricing, given its massive reserves of almost 490 million ounces of silver and 8 million ounces of gold. But thanks in part to improving prices along with increased production, the company is plotting steady growth over the next two years — with earnings per share set to surge from 12 cents for fiscal year 2023 to 34 cents this year, then 82 cents in fiscal year 2025. Not only is that profit growth good for shares, it’s good to back up the company’s regular dividend, too.
Tapestry Inc. (TPR)
Market capitalization: $9.9 billion Current dividend yield: 3.3%
The company behind luxury goods sold under the Coach, Kate Spade, and Stuart Weitzman brands, Tapestry is a leader in apparel and accessories — and is increasingly getting into kids’ items, housewares, and other products to widen its reach. Recently revising its outlook in February above prior forecasts, TPR expects a roughly double-digit growth forecast in earnings per share this fiscal year and in fiscal 2025 on top of that. The company is capitalizing on its strong connection with consumers as well as favorable spending trends, and currently pays a 35-cent quarterly dividend that adds up to an above-average yield, and an annualized rate that is up 17% from the prior year.
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Update 04/05/24: This story was published at an earlier date and has been updated with new information.
