Investors commonly tend to seek one of two paths: growth stocks that are expanding sales and profits, or value stocks that offer stability and income potential. And most of the time, those two strategies are mutually exclusive.
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That’s not always the case, however, as there are a few growth stocks that also pay significant dividends on Wall Street. We’re not talking about Big Tech icons like Microsoft Corp. (ticker: MSFT) and Apple Inc. (AAPL), either, that pretend they are truly dividend stocks but they offer current yields of less than 1%.
The following nine growth stocks that also pay dividends all deliver above-average paydays of at least 2.5% right now — roughly a full percentage point higher than the S&P 500’s average dividend payment. And unlike sleepy blue-chip income plays that are well-known, they also offer the potential for significant revenue or profit expansion in the years ahead.
| Stock | Market Capitalization | Trailing Dividend Yield* |
| Archrock Inc. (AROC) | $3.1 billion | 3.2% |
| Arcos Dorados Holdings Inc. (ARCO) | $2.0 billion | 2.5% |
| Baker Hughes Co. (BKR) | $33.4 billion | 2.5% |
| Essential Properties Realty Trust Inc. (EPRT) | $4.9 billion | 4.1% |
| Extra Space Storage Inc. (EXR) | $32.5 billion | 4.2% |
| Hannon Armstrong Sustainable Infrastructure Capital Inc. (HASI) | $3.3 billion | 5.6% |
| Inter Parfums Inc. (IPAR) | $3.7 billion | 2.4% |
| Opera Ltd. (OPRA) | $1.2 billion | 5.8% |
| Trinity Industries Inc. (TRN) | $2.4 billion | 3.8% |
*As of July 9 close.
Archrock Inc. (AROC)
— Market capitalization: $3.1 billion
— Dividend yield: 3.2%
Houston-based Archrock is an energy service company that is laser-focused on the natural gas compression business. It designs, installs and services equipment for the task and is the go-to name in the space for firms that have extracted fossil fuels from the ground but need assistance in storing and transporting that gas. The steady flow of business supports a steady dividend, which was just bumped up to 16.5 cents per share in February. Meanwhile, the company continues to grow and benefit from strength in the domestic energy market with predictions of 10% revenue growth this year. Profits are growing even faster, too, with earnings per share set to jump from 67 cents last fiscal year to $1.07 in fiscal year 2024 then $1.26 in fiscal year 2025.
Arcos Dorados Holdings Inc. (ARCO)
— Market capitalization: $2.0 billion
— Dividend yield: 2.5%
For Spanish speakers, the business of Arcos Dorados should be obvious as the name translates to “Golden Arches.” The Uruguay-based firm has the exclusive right to own and operate franchises of McDonald’s Corp. (MCD) restaurants in 20 countries across Latin America including Brazil, Mexico and Puerto Rico, among others. Much like the fast-food behemoth it is tied to, ARCO can generate reliable revenue from its dominant place in the consumer market. But a growing consumer class in Latin America — plus what looks to be an outsized GDP growth in these regions — is offering up a nice tailwind for revenue and profits right now.
Baker Hughes Co. (BKR)
— Market capitalization: $33.4 billion
— Dividend yield: 2.5%
The largest stock on this list, Baker Hughes is a giant in the energy services space. Among other things, it offers oilfield support including onshore and offshore drilling services, and touches almost every part of the oil and gas sector — from upstream to midstream to downstream. The company has had some ups and downs in the last decade, but fundamentally remains a key player in the sector with deep customer relationships. It’s also riding recent strength in the energy sector with 5% to 10% revenue growth both this year and next fiscal year, as earnings per share are forecast to increase from $1.60 in last year to $2.05 in fiscal year 2024 and $2.53 in fiscal year 2025.
Essential Properties Realty Trust Inc. (EPRT)
— Market capitalization: $4.9 billion
— Dividend yield: 4.1%
As the name implies, Essential Properties is a real estate firm. Its specialty is “single-tenant” properties in the United States rather than strip malls or commercial office buildings, with stand-alone clients that are the only customer in the building. The company is pretty diversified across its tenants, with almost 400 different companies contracted for more than 1,900 different properties and a mix that boasts car washes (15%), daycare (11%) and medical/dental (11%) as the top three sectors in its portfolio. As a real estate investment trust, or REIT, EPRT must deliver 90% of taxable income to shareholders — creating a mandate for generous dividends. However, the company is also expanding nicely right now with roughly 20% revenue growth projected in both fiscal 2024 and 2025 alike.
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Extra Space Storage Inc. (EXR)
— Market capitalization: $32.5 billion
— Dividend yield: 4.2%
Extra Space Storage is another REIT — but one with a much bigger footprint. Its specialty is self-storage, renting roughly 2.6 million units and about 283 million square feet of space. That makes it the largest operator of self-storage properties in the United States. This scale and reliable revenue gives it an opportunity to provide significant income to investors, but it is also growing as it looks to maintain its edge over competitors. In 2024, revenue is set to surge 30% thanks to a massive acquisition of rival Life Storage and potentially set up EXR for even greater dominance in the years to come.
Hannon Armstrong Sustainable Infrastructure Capital Inc. (HASI)
— Market capitalization: $3.3 billion
— Dividend yield: 5.6%
Hannon Armstrong Sustainable Infrastructure Capital is a real estate financing firm that owns equity stakes in energy efficiency, renewable energy, and sustainability projects across the U.S. As you can imagine, this is definitely a growth-oriented business to be in during an age of climate change and the continued expansion of green energy. That said, while share prices have mostly followed the market lately they can be pretty volatile as many companies in the alternative energy space can be. The company used to operate as a REIT, but as of Jan. 1, it now operates as a taxable C-corporation. Still, the tradition of generous dividends continues with a big yield and a recent bump in quarterly payouts to 41.5 cents per share in April over 39.5 cents previously.
Inter Parfums Inc. (IPAR)
— Market capitalization: $3.7 billion
— Dividend yield: 2.4%
Inter Parfums, perhaps unsurprisingly, manufactures and distributes a range of fragrances and cosmetic products in the United States and internationally. Its line includes top-shelf brands licensed under nameplates including Coach, Jimmy Choo, Kate Spade, Abercrombie & Fitch, GUESS, Hollister, and many others. These goods are in the sweet spot between discretionary purchases and staples, as there is always strong baseline demand from core customers but a chance for cyclical boosts along the way. Recently, a strong spending environment has lifted the stock as it plots roughly 10% revenue expansion this fiscal year and just shy of 9% growth in fiscal year 2025. What’s more, the dividend was bumped up to 75 cents per share in March from 62.5 cents last year and just 25 cents back in 2021. That is the kind of growth that dividend investors get most excited about.
Opera Ltd. (OPRA)
— Market capitalization: $1.2 billion
— Dividend yield: 5.8%
Though headquartered in Norway, Opera’s operations should be quite familiar to U.S. investors who salivate over Silicon Valley internet services firms. The company provides mobile and PC web browsing capabilities, an AI-powered personalized news discovery and aggregation service, video game platforms, e-commerce services and more. While companies like Alphabet Inc. (GOOG, GOOGL) dominate English-language categories like this, Opera has a small but important role to play in Scandinavia. And as it continues to optimize its business and add on new offerings, it’s growing nicely; analysts are predicting roughly 15% top-line growth in both fiscal 2024 and fiscal 2025. And while dividends only be paid twice a year instead of quarterly, the 41-cent distributions add up to a generous per-share annual yield of 6%.
Trinity Industries Inc. (TRN)
— Market capitalization: $2.4 billion
— Dividend yield: 3.8%
You might not think a railroad company could be an engine of growth, but specialized industrial stock Trinity has made a name for itself in the transportation space thanks to a specialty in railcar leasing and manufacturing. In a nutshell, it either sells freight and tank railcars directly to big railroad operators or alternatively rents cars for shorter-term agreements and ad hoc use. The company was incorporated way back in 1933 and is one of the most respected players in the rail space, so its reputation and business relationships give it a pretty wide moat and reliable revenue to fuel its dividends. And in the near term, TRN has been able to effectively manage its fleets and operations to drive serious profit growth. Earnings per share are set to jump more than 10% this year and then accelerate with more than 30% EPS growth in fiscal 2025.
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Update 07/10/24: This story was previously published at an earlier date and has been updated with new information.
