4 US Growth Stocks That Pay a Dividend
Growth investors have taken it on the chin last year but this year has turned out better so far.
The technology-heavy NASDAQ Composite Index has staged an impressive rebound by climbing 14.4% year to date.
Despite dark clouds gathering on the horizon, many stocks continue to enjoy tailwinds that assure investors of sustainable long-term growth.
These companies possess strong franchises and have great track records of weathering recessions and tough times.
For investors who are hunting for suitable investment ideas, it pays to look for growth stocks that also pay out a dividend.
The combination of growth plus dividends offers the best of both worlds.
Here are four high-quality US stocks that dole out quarterly dividends to boot.
Visa (NYSE: V)
Visa is a global market leader in digital payments and helps to facilitate transactions between consumers, merchants, financial institutions and government entities across more than 200 countries.
As of 30 September 2022, Visa had a total of 4.1 billion cards in issue, up 8% from a year ago.
The digital payments specialist reported its fiscal 2023 first quarter (1Q2023) earnings ending 31 December 2022.
Net revenue increased by 12% year on year to US$7.9 billion with the company seeing a 7% year on year rise in payments volume to US$3 trillion.
The recovery in cross-border travel saw cross-border volumes surge by 22% year on year.
Visa reported a net profit of US$4.2 billion for 1Q2023, up 6% year on year. It also generated a healthy free cash flow of US$3.9 billion over the same period.
Visa’s latest quarterly dividend stood at US$0.45, an increase from the US$0.375 paid out in the prior year.
Apple (NASDAQ: AAPL)
Apple needs no introduction, being the company that introduced the ubiquitous iPhone to the masses.
Its 1Q2023 earnings saw its installed base cross the two-billion device mark, a major milestone for the company.
However, net sales softened by 5.5% year on year to US$117.1 billion because of a weak macroeconomic environment and supply chain issues.
Operating profit slid by 13.2% year on year to US$36 billion while net profit slipped by 13.4% year on year to US$30 billion.
Of note, its Services revenue hit an all-time quarterly high of US$20.8 billion.
Despite the weaker results, Apple continued to generate copious levels of free cash flow at US$30.2 billion for 1Q2023.
The technology company will pay out a quarterly dividend of US$0.23, up slightly from the US$0.22 doled out a year back.
Nike (NYSE: NKE)
Nike is a well-known brand for its advanced lineup of athletic footwear and sports apparel.
The Oregon-based company is estimated to have slightly more than a quarter of the world’s market share in sports footwear.
The sports company recently released its fiscal 2023 second quarter (2Q2023) earnings ending 30 November 2022.
Revenue shot up 17% year on year to US$13.3 billion as the company witnessed strong growth across all its regions and distribution channels.
Net profit, however, remained flat year on year at US$1.3 billion as the company faced a higher bill from the taxman for the quarter.
A dividend of US$0.34 was declared for 2Q2023, 11.5% higher than the US$0.305 paid out in 2Q2022.
Free cash flow for the first six months of fiscal 2023 remained healthy at US$858 million.
Tractor Supply Co (NASDAQ: TSCO)
Tractor Supply is the largest rural lifestyle retailer in the US with 2,066 stores across 49 states as of 31 December 2022.
The company also operated 186 Petsense stores selling pet food and products in 23 states.
Tractor Supply reported a commendable set of earnings for its fiscal 2022 fourth quarter (4Q2022) and full year (FY2022).
For 4Q2022, sales jumped 20.7% year on year to US$4 billion with comparable store sales rising 8.6% year on year.
Earnings per share for 4Q2022 jumped 25.9% year on year to US$2.43.
A quarterly dividend of US$0.92 was declared, a 77% year-on-year increase from the US$0.52 paid out a year earlier.
For FY2022, sales increased 11.6% year on year to US$14.2 billion with net profit rising by 9.2% year on year to US$1.1 billion.
The company’s loyalty program, Neighbor’s Club, had more than 28 million members at the end of 2022 and saw a 47% growth over the last two years.
A total of 63 new Tractor Supply stores were opened in FY2022 with another 81 stores acquired from Orscheln Farm and Home to be rebranded as Tractor Supply by the end of this year.
How do you decide if a growth stock is worth your money? There is no shortage of stock ideas today, but is a particular stock suitable for you? Find out more in our latest FREE report, How To Find The Best US Growth Stocks For Your Portfolio. Click HERE to download the report for free now!
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Disclosure: Royston Yang owns all of the companies mentioned.
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