Growth stocks are popular among long-term equity investors. That’s because Wall Street expects these companies to grow their revenue and earnings at above-average rates compared to the broader market. This is in contrast to value stocks, which are considered undervalued based on current, rather than future, fundamentals.
Growing companies tend to focus on increasing market share, developing new products and services, and expanding geographical reach. Growth stocks are often found in the information technology sector and in other fast-growing areas. Some growth companies are young firms just emerging from startup status, but most are firmly established and well known.
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Not all growth stocks pay dividends, however, as many businesses in this category choose to reinvest earnings back into operations rather than reward investors with cash dividends. Still, some growth stocks do pay dividends, and they can be even more beneficial to shareholders.
Dividends provide dependable income, which can be spent, saved or reinvested back into the market. Regular dividends are usually paid even if a stock declines. They can act as a cushion to lessen the negative impact of downturns or bear markets. If a company can pay dividends while it’s growing, that is often a sign of stability and a strong financial position.
If you’re looking for stocks that offer the potential for share price appreciation and make regular dividend payments, check out the seven stocks on this list. They offer the opportunity for high returns while providing income and a measure of security:
| Stock | Forward Dividend Yield* |
| Broadcom Inc. (ticker: AVGO) | 1.2% |
| Microsoft Corp. (MSFT) | 0.7% |
| Apple Inc. (AAPL) | 0.4% |
| GE Aerospace (GE) | 0.6% |
| Visa Inc. (V) | 0.7% |
| Costco Wholesale Corp. (COST) | 0.4% |
| Meta Platforms Inc. (META) | 0.3% |
*As of Dec. 11.
Broadcom Inc. (AVGO)
AVGO is a respected technology stock with a history dating back to the 1960s when the company was a part of Hewlett Packard Enterprise Co. (HPE). AVGO is known for innovation in the development of high-speed semiconductors and technology infrastructure software solutions.
AVGO specializes in system-on-a-chip semiconductors that are critical to digital subscriber lines and fiber-optic network equipment as well as wireless communications networks. It also designs and manufactures ethernet switching and routing circuits and radio-frequency semiconductor devices used in the aerospace industry and in other industries that demand high-performance digital electronic equipment.
Broadcom has a solid and growing customer base and a strong financial foundation. The company began paying a dividend in 2010. Since the dividend was established, AVGO has never missed a dividend and has increased its payout every year. The company boasts a market cap of $843 billion. Its stock got a boost on Dec. 11 after reports that it has partnered with Apple to develop the iPhone maker’s first server-based chip designed specifically for artificial intelligence processing.
Dividend yield: 1.2%
Microsoft Corp. (MSFT)
Microsoft designs, manufactures and markets state-of-the-art software and hardware, and it is a leader in high-speed computing and gaming. Its $3.3 trillion market cap reflects its dominant market position.
The company’s Microsoft Office product line is one of the world’s most popular subscription-based software products. This establishes MSFT as a global leader in business productivity and enterprise technology.
In keeping with its reputation for innovation, MSFT is making a strong push to develop the next generation of AI microchips. Nvidia Corp. (NVDA) has a head start in that fast-growing industry, but Wall Street expects MSFT to narrow the gap and compete directly with NVDA within the next decade, or even sooner.
With tens of millions of loyal customers and solid financials, MSFT should be able to maintain and raise its current forward dividend of $3.32 a share per year.
Dividend yield: 0.7%
Apple Inc. (AAPL)
AAPL is one of the best-known and most widely held dividend-paying growth stocks in the world. This tech giant has a market cap of about $3.7 trillion. Wall Street estimates that the company will generate about $414 billion in revenue during its current fiscal year and grow that number by 8% to $448 billion in fiscal 2026.
Apple is almost 50 years old, but it can still be considered a growth stock. The company enjoys a high level of brand loyalty from customers using its estimated 2.2 billion active devices around the globe. The company is committed to maintaining its existing customers and growing its base by developing its product line and expanding into new markets.
The current forward annual dividend stands at $1 a share. Based on the fact that AAPL has a huge stockpile of cash on its books, analysts are confident in the company’s ability to maintain the dividend and increase it over time.
Dividend yield: 0.4%
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GE Aerospace (GE)
In 2023, General Electric underwent a major restructuring. The parent company spun off its health care segment, which became GE Healthcare Technologies Inc. (GEHC), and its energy division — now called GE Vernova Inc. (GEV). It retained its jet engine manufacturing and aerospace technology operations and renamed itself GE Aerospace.
The equity research arms of UBS, Jefferies and Deutsche Bank all have a “buy” rating on the new entity, which still trades under the original ticker, GE.
GE designs and manufactures high-performance jet engines and related components, along with integrated technology platforms for the U.S. military, NATO countries and other friendly governments. Because of its contributions to the defense industry, GE is a strategically important company.
In addition to propulsion systems that power the world’s most sophisticated military aircraft, GE has aggressively expanded into digital weapons and navigation systems. Its technology segment develops AI-driven predictive analytics and operational tools for the defense industry and commercial airlines.
GE has a $183 billion market cap and a 0.6% forward dividend yield.
Dividend yield: 0.6%
Visa Inc. (V)
Visa is one of the best-known consumer credit card issuers in the world, but it has expanded beyond that into cybersecurity.
The company’s financial technology is considered second to none. Its embrace of technology — including AI — has kept it at the forefront of consumer credit, computer and application-based payment processing and digital security for many years.
Visa’s growth story is undeniable. A decade ago, at the end of the firm’s fiscal 2014, GE reported about $13 billion in revenue. It will soon report fiscal 2025 results, which Wall Street expects will total about $39 billion for that period. In fiscal 2026, Wall Street expects revenue of about $43 billion. V is not primarily an income stock, but it does pay an annual forward dividend of $2.36 a share. The company has a $605 billion market cap.
Dividend yield: 0.7%
Costco Wholesale Corp. (COST)
Costco is a $445 billion company that’s still demonstrating the distinct characteristics of a growth company. Consensus Wall Street earnings estimates for COST are $17.89 per share for its fiscal year 2025 and $19.73 for fiscal 2026. That works out to 10% projected earnings growth. Revenue is also projected to grow at a healthy rate, from $273 billion in fiscal 2025 to $291 billion in fiscal 2026.
Costco’s impressive growth prospects are a function of the company’s ability to consistently and successfully execute on its business plan. The company operates warehouse-style, big-box retail outlets in the U.S. and internationally. COST depends on a unique membership subscription system, and it has been able to thrive under that business model.
COST has shown impressive resilience in good economic times and bad. The company is adept at managing product prices and membership fees to optimize the shopping experience for members.
It’s the company’s stability and adaptability that make it one of the best dividend-paying growth stocks an investor can own.
Dividend yield: 0.4%
Meta Platforms Inc. (META)
Facebook parent Meta is a $1.6 trillion technology company. In 2021 the company reorganized as Meta Platforms and started to focus on developing an interactive, interconnected virtual reality world that its founder, Mark Zuckerberg, calls the metaverse.
From its headquarters in Menlo Park, California, Meta operates the communication platforms Facebook, WhatsApp, Instagram and Messenger. The company has billions of users around the world. If and when its virtual reality plans come to fruition, it is sure to add millions more. Over the last decade, Meta has also emerged as one of the world’s most formidable leaders in artificial intelligence research.
Wall Street is looking for revenue of $163 billion for 2024 and an increase of about 15% to $187 billion for 2025. Most of that revenue will be generated by digital advertising. Meta tends to reinvest a big chunk of its net income back into growing the company, but began paying a modest dividend for the first time earlier in 2024. While the yield might not be much to write home about, the company’s dividend, aggressive stock repurchasing and earnings growth all make Meta a pretty compelling buy today.
Dividend yield: 0.3%
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Update 12/11/24: This story was previously published at an earlier date and has been updated with new information.
