Dividend stocks have driven out a wider market over the past two years, primarily by investors who support companies focused on AI. Still, experienced investors recognize the long-term value of dividend paying stocks, supported by their strong historic performance. Short-term trends do not reduce their importance. In fact, according to the S&P Dow Jones index, dividends have historically played a major role in total revenue, accounting for around 31% of the broader market’s total monthly revenue from 1926 to February 2025.
Dividend stocks are doing well this year despite the wider market facing turbulence. Wall Street has recently become a hit amid growing fears about the economic fallout from President Donald Trump’s growing trade war. The three major US indices wiped out much of the profits of the previous session and recorded a sharp decline as escalating tensions between the US and China overshadowed positive economic reports and advances in trade talks with Europe. The S&P Index has declined by more than 8% since its launch in 2025, while the high-tech NASDAQ has dropped by more than 13%. Meanwhile, the Dividend Aristocrats Index, which tracks the performance of companies that have achieved dividend growth for the 25th consecutive year, has recorded a decline of nearly 3%.
This highlights the tendency for dividend stocks to function more steadily during the market slump. This is a trend supported by historical data. Over time, S&P Dow Jones Indices reports that Aristocratz has produced stronger risk-adjusted returns than the broader market, with lower volatility. These stocks offer solid negative side protection, surpassing the S&P index at around two-thirds of the market’s downs and around 44% of months up. They also experience small drawdowns compared to the overall index, which enhances their defensive appeal. Furthermore, during the market slump, dividends affected an average excess return of 0.87% in the broader market. From December 29, 1989 to February 28, 2025, these stocks showed a market beta of 0.8, indicating volatility and greater resilience compared to the overall market.
Analysts noted that the historic performance of dividend stocks continues to form a positive outlook for the year. JP Morgan’s recent report suggested that global stocks could enter a strong phase of dividend growth. This is driven not only by the cyclical rebound of payments, but also by sustained structural momentum. Global dividends per share have increased at an average annual rate of 5.6% over the past 20 years, but forecasts show a 7.6% acceleration over the next few years.
The report highlighted that the most promising opportunity in the dividend space is in what is called “companies,” that is, the companies with a consistent track record of increasing dividends supported by solid revenue growth. Almost half of the strategy focuses on these companies, which are also seen as strong contributors to alpha generation within their investment portfolio. With this in mind, we’ll look at some of the best high-growth stocks paying dividends.
Costco Wholesale Corporation: Invest in high-growth, eternal dividend stocks
Warehouse customers browse a wide range of brands and private label products in the aisle.
Our Methodology:
This list has screened dividend stocks with sound financial and robust balance sheets. From that group, we selected companies that have achieved positive revenue growth over the past five years and have at least 10 years of dividend growth. The final 10 picks are revenue growth rates above 5% over five years. Stocks are ranked in ascending order of revenue growth.
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Revenue Growth over 5 years: 10.77%
Costco Wholesale Corporation (NASDAQ:COST) is an American retailer that operates a large, membership-only box warehouse club store. The company experienced strong demand in various categories during the quarter, according to comments made in the company’s second quarter 2025 revenue call made by CFO Gary MillerChip. He said sales of gold and jewelry, gift cards, toys, household items, equipment, sports goods, furniture and small electricity all grew by double digits.
Costco Wholesale Corporation (NASDAQ:COST) also benefited from the continued customer loyalty driven by a membership-based model. Despite wider economic uncertainty, membership rose 6.8% year-on-year in the second quarter, but renewal rates remained very high at 93% in the US and Canada. Net sales increased strongly by 9.1%, with the majority of growth coming from a 6.8% increase in sales in the same store, driven primarily by increased customer visits. In particular, the company has confirmed its revenue growth has been accelerating for the second consecutive quarter. Over the past five years, revenues have skyrocketed by nearly 11%, making it one of the best high-growth stocks paying dividends.
Costco Wholesale Corporation (NASDAQ:COST) closed the quarter with more than $12.3 billion, cash and cash equivalent. The company’s operating cash flow exceeded $6 billion, up from $5.3 billion in the same period last year. This powerful cash generation has allowed the company to increase its payments for the 10th consecutive year. It currently offers a quarterly dividend of $1.16 per share, and as of April 13, it has a dividend yield of 0.48%.
Overall, the cost 6th place A list of the best high growth stocks to pay dividends. Although we acknowledge the potential cost as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks provide higher returns and hold a greater commitment to doing it within a shorter time frame. If you’re looking for a deep, undervalued dividend stock that’s more promising than cost, but trades at 10 times the revenue and increases your revenue at double-digit interest rates per year, Cheap dividend stocks with dirt.
